InsuranceLimited Pay Policy Captive insurer Theft Businessowners policy Employment practices liability coverage Exposure doctrine
Underwriting income
An important concept in the world of finance is the insurer's profit, which refers to the amount earned after all expenses and losses have been covered through the sale of insurance. However, when the premiums collected are not enough to cover these costs, it results in an underwriting loss. This loss is usually balanced out by the income generated from investments. As such, the profitability of insurance companies is dependent on both underwriting and investment performance.
Related terms
Understand the meaning and definition of Limited Pay Policy in the context of stock market, trading, and investments.
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