The risk that underwriting results will deviate adversely from the risk allowed for in assessing the premiums required to cover the pure risks accepted by the insurer. Poor underwriting decisions have an adverse impact on profitability.
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the possibility that the amount which a general insurer will have to pay to indemnify policy holders in respect of the perils covered by the insurance will exceed the amount anticipated in calculating the premiums (in life insurance this definition only applies to the mortality risk).