Risk charge

{
  "id": "MLC-T-INS-002964",
  "term": "Risk charge",
  "field": "Insurance and risk management",
  "definition": "An additional amount added to the pure premium in an insurance policy to account for the uncertainty of future losses and the insurer's cost of bearing that risk. This charge compensates the insurer for the possibility that actual claims may exceed expected claims, and for the capital required to support the policy. It reflects factors such as volatility of losses, reinsurance costs, and the insurer's desired profit margin.",
  "url": "https://mlchart.com/terminology/insurance/risk-charge/"
}