ABSTRACT
INSURANCE COMPANIES assume risk through the insurance contracts they underwrite; seeIAA (2004, p. 29). The underwriting process risk refers to the risk related to the businesses that will be
written during the following year. In general, we should consider it net of reinsurance, as the reinsurance will be dealt with in the default credit risk category. The underwriting process risk will thus be highly correlated with the credit risk.
