Which of the following criteria is considered when assessing the financial stability of an insurer?

Assessing the financial stability of an insurer involves examining various factors, and one key aspect is the insurance risk management practices in place. Effective risk management practices determine how well an insurer can identify, assess, and mitigate risks associated with underwriting policies. This not only influences the insurer's ability to pay claims but also affects their overall profitability and solvency.

Strong risk management practices enable insurers to set appropriate premiums, maintain necessary reserves, and diversify their investment portfolios. Insurers that excel in risk management are better positioned to handle unexpected losses or economic downturns, ensuring that they remain financially stable over time. Therefore, examining these practices is essential for determining the long-term viability and financial health of an insurance company.

In contrast, the other options, while relevant to insurance operations, are not primary criteria for assessing financial stability. For instance, claims history of policyholders provides insight into individual risk but does not directly reflect an insurer's financial integrity. Policy pricing strategies can impact competitiveness and market positioning but may not indicate financial strength. Similarly, market share can show an insurer's market footprint but doesn't necessarily correlate with their financial stability.