Existential cost of risk (XCOR)

{
  "id": "MLC-T-INS-001390",
  "term": "Existential cost of risk (XCOR)",
  "field": "Insurance and risk management",
  "definition": "A theoretical measure of the premium an insurer would charge if a company insured all of its risk exposures, including those that are not commercially insurable. It is derived from the cost of capital applied to the company's equity, and it sits above the traditional total cost of risk, which counts only premiums, retained losses, and administrative costs. Captive insurance planners treat it as an upper bound for enterprise risk captive premiums.",
  "abbreviation": "XCOR",
  "url": "https://mlchart.com/terminology/insurance/existential-cost-of-risk-xcor/"
}