What could indicate a systematic risk for an insurer?

Increased claims across multiple occupations signify a systematic risk for an insurer because it suggests broader issues affecting a wide array of variables rather than isolated incidents. Systematic risk refers to the potential for loss that affects a large number of policyholders and reveals an underlying problem within the insurance environment, such as economic downturns, significant changes in industry standards, or widespread health crises.

When claims arise from various occupations, it can indicate a common factor causing the increase, such as an economic recession leading to higher accident rates or public health issues resulting in increased medical claims. This is different from the other choices, which imply localized or less impactful risks. For example, increased claims within a specific city are more likely related to that region's circumstances, changes in local business regulations may affect only certain industries or sectors, and claims from a single individual do not suggest a widespread effect on the insurer’s portfolio. Therefore, the correct response highlights the relevance of multiple claims across different occupations as a marker of systematic risk.