What does Subjective Risk mean? Read on to discover the definition & meaning of the term Subjective Risk - to help you better understand the language used in insurance policies.
Subjective risk is the perceived chance of something bad based on a person's opinion, emotions, gut feeling, or intuition. It is not a mathematical review of the situation, but rather a quick assessment based on a person's feelings at the time. For example, a superstitious person might skip a flight on Friday the 13th because they see a subjective risk.
We hope the you have a better understanding of the meaning of Subjective Risk.