In insurance, which term refers to the measurement of the risk taken on by insuring an individual?

The term that refers to the measurement of the risk taken on by insuring an individual is risk assessment. This process involves evaluating various factors related to an individual's health, lifestyle, and history to determine the level of risk that the insurer will bear. By conducting a risk assessment, insurers can set appropriate premiums, coverage limits, and terms based on the potential risk of loss.

Risk assessment is a crucial component of the underwriting process and helps insurers manage their overall exposure to claims. This systematic evaluation allows for informed decision-making, ensuring that both the insurer and the insured understand the nature of the risk involved.

In contrast, impact assessment usually focuses on the consequences of risk rather than its measurement. Benefit assessment relates to evaluating the advantages or value provided by a policy, while value assessment typically pertains to determining the worth of an asset or service, rather than the measurement of risk in insurance contexts. Therefore, the appropriate term that aligns with the measurement of risk in insurance is indeed risk assessment.