What do we call a risk that requires high insurance limits that may exceed what admitted insurers can underwrite?

The term used to describe a risk that necessitates high insurance limits, potentially exceeding the underwriting capacity of admitted insurers, is "high-capacity risk." This encompasses scenarios where the insurance amounts needed are significantly above what standard or admitted insurers are able or willing to cover. Such risks might be associated with large commercial properties, complex liabilities, or specific industries that entail substantial financial exposure.

In the context of surplus lines insurance, high-capacity risks are placed with non-admitted insurers who can provide the necessary coverage limits to meet the policyholder's needs. This makes it possible for businesses or entities facing substantial risks to secure the coverage required for their operations, which they may not find available through standard insurance markets.

The other terms don't accurately capture this specific nature of high-risk scenarios. Terms like distressed risk generally pertain to financial situations where an entity is facing severe operational or financial difficulties. Standard risk refers to average or typical coverage situations that align with what admitted insurers are willing to underwrite. Export risk relates to the challenges and uncertainties associated with international trade and business ventures, which is not specifically linked to the capacity of insurance coverage limits.