CISR Elements Of Risk Management Practice Test

The number of claims that occur or that an insurer expects to occur within a given period of time is labeled _____.

Severity Probability Frequency Risk

Correct Answer:

Frequency

Explanation:

Frequency is the measure of how often claims occur in a given period, i.e., the count or rate of claims over time. In insurance analytics, loss data are analyzed by separating how often events happen (frequency) from how costly each event is (severity). The number of claims you expect to occur in a period describes frequency, and it helps drive expected losses when paired with severity. For example, 20 claims expected per year across a portfolio means a frequency of 20 claims per year. The overall risk or expected loss would then combine this frequency with the average claim size (severity). Probability relates to the likelihood of a single event, while risk is the broader concept that combines both how often events occur and how large the losses are.

Access more questions from this quiz

Continue to CISR Elements of Risk Management Practice Test for more practice questions and the full quiz experience.

Access More Questions