An underwriter assesses which of the following to determine policy pricing?

An underwriter primarily assesses claim history to determine policy pricing because it provides critical insights into the risk profile of an individual or entity seeking insurance coverage. Claim history reveals previous incidents and their outcomes, allowing the underwriter to evaluate the likelihood of future claims. A history of frequent or high-cost claims may indicate a higher risk, leading to increased policy premiums, while a clean claim history may result in lower premiums.

Additionally, by understanding the frequency and severity of past claims, underwriters can better align the insurance pricing with the actual risk being assumed. This process is fundamental to underwriting since it helps ensure that the insurer remains profitable while offering competitive pricing to customers.

In contrast, customer loyalty, market trends, and insurance regulations play a role in the broader context of underwriting but do not directly influence the specific assessment of risk associated with an individual policyholder's claim history. Customer loyalty might affect retention strategies, market trends can inform competitive pricing strategies, and regulations ensure compliance in the underwriting process, but none are as directly tied to assessing risk and determining pricing as claim history.