What is the term for the analysis of risk when underwriting an insurance policy?

The term that refers to the analysis of risk in the context of underwriting an insurance policy is "risk assessment." This process involves evaluating the likelihood of certain events occurring and the potential impact those events might have on the insurance company.

During risk assessment, underwriters collect and analyze data about the applicant, their previous claims history, and other relevant factors to determine how much risk the company would be taking on by issuing the policy. This information helps underwriters decide whether to accept the application and under what terms. Proper risk assessment allows insurers to identify high-risk clients and set appropriate premiums that reflect the risk level involved.

In comparison, the other terms have specific meanings that are distinct from risk assessment. "Risk evaluation" typically refers to a broader examination of risk rather than focusing strictly on the underwriting phase. "Risk exposure" addresses the potential losses an insurance company may face due to claims, while "risk management" encompasses the overall strategies an organization uses to mitigate and control risk over time. Thus, the precise focus of risk assessment on underwriting makes it the correct choice for this question.