What term is used to describe the calculated risk associated with insuring a client?

The term that describes the calculated risk associated with insuring a client is risk assessment. Risk assessment involves analyzing the likelihood of an event occurring and the potential severity of that event. This process helps insurance brokers understand the nature and extent of risks associated with individual clients and their insurance needs.

In risk assessment, various factors are considered, including the client's past claims history, their business practices, property values, and any unique exposures they may face. This detailed analysis allows brokers to determine appropriate coverage options and pricing for a particular client, thereby ensuring that both the client and the insurer are adequately protected.

The other terms mentioned do not specifically focus on the evaluation of risk for insuring a client. Policy evaluation typically refers to reviewing the coverage terms and conditions of a specific insurance policy without necessarily analyzing the associated risks. Coverage analysis involves examining the specifics of what is covered under a policy rather than assessing the risk of insuring the client. Client profiling may involve gathering information about the client for marketing or service purposes, but it does not directly relate to evaluating the risk involved in insuring them. Thus, risk assessment is the most accurate term for this process.