'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.
A large, hazardous insurance / A large insurance eagerly sought by brokers or insurers.
The main risk where the client has more than one premises. This is the risk which if damaged, will affect the insurer the most.
(1) Certain high-value bridges, tunnels, and fine art collections that are excluded from an automatic reinsurance contract to permit specific handling of the capacity problem and to release the reinsurer from the potential heavy accumulation of liability on any one risk. (2) A large, hazardous risk on which insurance is difficult to place. (3) A large, attractive risk that is considered a target for competing insurance companies.
Target Risk refers to the minimum acceptable risk.