What term describes the financial likelihood of an insurer experiencing loss from a given exposure?

The financial likelihood of an insurer experiencing loss from a given exposure is best described by the term "risk assessment." This term refers to the process of identifying, analyzing, and evaluating the risks associated with specific situations or exposures. In the context of insurance, it involves determining how likely it is for a loss to occur and the potential impact of that loss on the insurer's financial stability.

Risk assessment considers various factors, including historical data, the nature of the exposure, and external influences that could affect loss potential. It allows insurers to make informed decisions about underwriting, pricing policies, and managing their overall risk portfolios. This assessment is crucial as it guides insurers in understanding which exposures carry higher risks and require more significant financial reserves or higher premiums to cover potential losses.

In contrast, the other options provided pertain to different aspects of insurance and risk management. Probability refers to the likelihood of an event occurring but does not encompass the broader evaluation process implied by risk assessment. Loss expectancy focuses specifically on the anticipated financial outcome of a loss, while insurable value relates to the worth or value of the property or person being insured. These terms are related but do not capture the comprehensive nature of assessing financial risk faced by an insurer as effectively as risk assessment does.