Which insurance practice is designed to predict future risk?

Underwriting is the process that evaluates the risk of insuring a person or asset and determines the terms of the insurance policy, including the premium. It involves analyzing various factors such as the applicant's health history, lifestyle choices, and other relevant data to predict the likelihood of future claims. This risk assessment is crucial for insurance companies to ensure sustainable operations and profitability.

In underwriting, actuaries and underwriters assess data and apply statistical models to forecast potential risks, helping to balance the risk and ensure that appropriate coverage levels and premiums are set. This predictive function is vital to protect the insurer from financial losses and to ensure that customers receive appropriate coverage for their individual risk profiles.

Other options like claims adjustment, loss control, and marketing serve different functions that do not primarily focus on predicting future risks associated with insuring individuals or properties. Claims adjustment deals with evaluating claims after they have occurred, loss control aims at minimizing potential losses through various risk management strategies, and marketing focuses on promoting insurance products to potential customers rather than assessing risk.