What term describes the assessment of risk factors to determine the price of insurance?

The term that best describes the assessment of risk factors to determine the price of insurance is "Risk Assessment." This process involves evaluating various factors that can impact the likelihood and cost of a claim. Insurers analyze information such as the insured individual's health, lifestyle, property conditions, and previous claims history. By conducting a thorough risk assessment, insurers can categorize risks and set premiums accordingly, reflecting the level of risk associated with providing coverage.

This precise evaluation helps ensure that the insurance policy is not only priced fairly but also financially viable for the insurer while providing adequate protection for the insured. This process plays a crucial role in the overall underwriting process, helping insurers maintain their financial stability and ability to pay out claims when needed.