Long-Tail Risk
In insurance, long-tail risk refers to the exposure associated with insurance policies where claims may take a long time to emerge, be reported, and ultimately settled. This includes losses that are discovered or reported months or even years after the incident occurred, as well as delays in claim resolution due to extended litigation, ongoing treatment, or other complicating factors. Lines of insurance typically associated with long-tail risk include: general liability, directors & officers (D&O) liability, medical malpractice, product liability, and professional liability.
Related terms: claims made, IBNR, IBNER