What term describes the chance or uncertainty of loss?

The term that best describes the chance or uncertainty of loss is "risk." In the context of insurance and finance, risk refers to the possibility that a certain event will occur, which may lead to financial loss or harm. Understanding risk is fundamental to assessing potential losses and determining how to manage those risks effectively through various strategies, such as insurance.

In insurance terminology, "exposure" refers to the extent to which an individual or entity is liable to experience a loss, and it measures the level of risk associated with specific assets, activities, or operations. "Hazard" indicates a condition that increases the likelihood of a loss occurring, while "speculation" usually relates to the uncertainty of returns on investments rather than the likelihood of loss itself. Risk encompasses all of these aspects by addressing the overall uncertainty surrounding loss events. Thus, recognizing that risk represents this inherent uncertainty is crucial for those studying property and casualty insurance.