Which of the following statements describes uncommitted exposure?

Uncommitted exposure signifies potential future risks that have not yet materialized. This concept is vital in insurance because it represents the possibility of losses that an insurer may have to cover if certain events occur. Understanding uncommitted exposure helps insurers in their risk management and pricing strategies. By recognizing these potential risks, insurers can better assess their overall risk exposure and develop appropriate policies and premiums.

The other definitions lack the focus on future risks. For instance, the statement regarding risks already incurred refers to committed exposure, which pertains to existing liabilities and losses. The mention of only insured losses is also misleading, as uncommitted exposure can include risks that may or may not ultimately be insured. Similarly, the idea of risks underwritten by different insurers doesn't capture the essence of uncommitted exposure, which is concerned with potential future liabilities rather than the distribution of those risks among insurers.