A factor such as age, sex, or occupation is known as what in the context of insurance?

In the context of insurance, the term that refers to factors like age, sex, or occupation is exposure. These factors are essential because they can significantly influence the risk associated with an insurance policy. Exposure pertains to the potential for loss or the heightened likelihood of an event occurring based on characteristics of the insured individuals or entities.

For example, certain occupations may have a higher risk of accidents, while age can affect life insurance premiums due to expected lifespan variations. Therefore, understanding exposure helps insurers assess the likelihood and potential severity of claims associated with different groups or individuals.

In contrast, risk generally refers to the possibility of a loss occurring, peril identifies specific causes of loss (like fire or theft), and loss represents the actual financial impact or reduction in value that results from a covered event. Each of these terms has a distinct role in the insurance framework, but exposure is especially focused on those variable characteristics that influence how insurers evaluate and price their coverage.