Written Exposure

What Does Written Exposure Mean?

Written exposure refers to the assets or units covered by insurance policies during a specific period. It is crucial for insurance companies to have an accurate understanding of their written exposure to assess how vulnerable they are to potential losses. Excessive written exposure can put the company at risk of insolvency.

Insuranceopedia Explains Written Exposure

An insurance company with high written exposure levels could face serious financial trouble if too many policyholders file claims simultaneously. For this reason, insurers must monitor their written exposure to ensure they don’t take on excessive risk, reducing the likelihood of facing a claim volume that exceeds their capacity to manage.

A relatively high level of written exposure can be mitigated by setting correspondingly high premiums.