Definitions for "Target Risk"
'The big one'. This is an insurer's term for a large, sometimes hazardous risk. Such a risk may well be the biggest on a schedule of risks and may therefore have to be treated separately in order to arrange reinsurance to cover it fully.
(1) A large risk that attracts unusually keen competition among insurers, agents or brokers, or (2) A large, hazardous risk for which insurance is difficult to place.
Can be defined as one of the following: A hazardous risk that insurers find difficulty to place values on. A large risk that is considered attractive to many insurers. Used to define certain items that are not included from automatic reinsurance to permit specific handling of the capacity problem and to release the reinsurer from heavy liability on of risk. Items include fine art, roadways, etc.