Probability of ruin

{
  "id": "MLC-T-INS-002688",
  "term": "Probability of ruin",
  "field": "Insurance and risk management",
  "definition": "The likelihood that an insurer's surplus or capital will fall below a specified minimum level, often zero, over a given time horizon. Actuaries calculate this metric to assess the financial stability and solvency of an insurance company. It is a key concept in risk theory and capital management, influencing decisions on premium setting and reserve levels.",
  "url": "https://mlchart.com/terminology/insurance/probability-of-ruin/"
}