Economic cost of ruin (ECOR)

{
  "id": "MLC-T-INS-001252",
  "term": "Economic cost of ruin (ECOR)",
  "field": "Insurance and risk management",
  "definition": "A risk measure for insurers equal to the expected value of the shortfall when assets prove insufficient to meet liabilities, that is, the probability of ruin weighted by how large the unpaid deficit would be. It is also called expected policyholder deficit, and it refines the simple probability of ruin by also taking the size of the unpaid obligations into account.",
  "abbreviation": "ECOR",
  "url": "https://mlchart.com/terminology/insurance/economic-cost-of-ruin-ecor/"
}