What is the term for the process used by insurers to evaluate the risk of insuring a client?

The term for the process used by insurers to evaluate the risk of insuring a client is underwriting. Underwriting involves analyzing various factors related to a potential policyholder, such as their personal and business history, financial stability, previous insurance claims, and the overall risk associated with insuring them. This process helps insurers determine the appropriate coverage options, premium rates, and whether to accept or decline the risk.

Underwriting ensures that the insurer can balance risk and profitability while providing protection to policyholders. The information gathered during this process aids insurers in making informed decisions about the terms of the insurance policy, including any exclusions or limitations that may apply.

The other terms provided do not accurately describe this specific process. Claim processing refers to handling and settling claims that policyholders submit after a loss. Risk assessment is a broader term that could encompass underwriting, but it does not specifically refer to the structured process undertaken by insurers to evaluate an individual's insurability. Policy evaluation typically refers to reviewing the policy's suitability or effectiveness rather than the initial risk evaluation undertaken before providing coverage.