What Do Insurance Underwriters Do?

Insurance underwriting is the process by which an insurer reviews an application for insurance made by a unit or individual willing to purchase insurance (ie, the insured) and makes a decision on whether or not to accept it and how to accept it.

Insurance underwriting

It can be said that the entire process of signing insurance contracts such as invitations, commitments, verifications, and subscriptions for insurance business are all part of the underwriting business.

In fact, when you enter the underwriting link, you enter the insurance contract.

(I) Underwriting elements of property insurance

In the process of underwriting property insurance, key factors need to be analyzed and evaluated for some factors, as well as on-site surveys. Among them, the main underwriting factors are:

1 The environment in which the subject matter of insurance is located.

2 The nature of occupation of the insured property.

3 The main risks, hidden protection areas and protection measures of the subject-matter insured.

4 Is there any property in danger?

5 Check the development and implementation of various safety management systems.

6 Check the past accident records of the insured.

7 Investigate the moral situation of the insured.

(II) Division of risk units

The risk unit refers to the scope of a risk accident that may cause the loss of the subject-matter insured. There are generally three forms of division:

1 Divide the risk unit by lot.

2 Divide the risk unit by target.

3 Divide the risk unit by the insured unit.

Underwriting of life insurance

(I) Underwriting elements of life insurance

The underwriting elements of life insurance are generally divided into those that affect mortality and those that do not.

Elements of mortality are taken into account in life underwriting.

1 Age and gender.

2 Physical and physical condition.

3 Personal medical history and family medical history.

4 Occupation, habits, and living environment.

(II) Classification of risk categories

1 Standard risk.

2 Quality risk.

3 Weak body risk.

4Uninsurable risks.

Focus on insurance coverage

When you buy insurance, it's important to see what your coverage is. For example, does the property insurance you buy cover the calligraphy, painting, antiques, etc. of your home? Does the travel insurance you bought have medical compensation for accidental injuries? Are there any exclusions for the health insurance you bought? Sometimes, whether we can enjoy more adequate protection does not depend on how much insurance we have, but on whether we have bought the right insurance product.

In fact, what makes us feel depressed is that often what you need is not provided by the insurance company. For example, bicycle theft was serious in the early years, so people urgently need to insure against bicycle theft insurance. Of course, no company designs such products. Because insurance spreads risks through the control of the probability of payment. If the probability of loss is high, the risk is too great for the insurance company. In order to deal with risks and avoid operating losses, insurance companies must increase their premiums. But premiums are too high and people are reluctant to buy. Generally speaking, the protection that people urgently need often has a relatively high probability of loss, which just contradicts the risk control of insurance companies.

Insurance is an effective means of transferring risks. People pass on risks to insurance companies by purchasing products. However, commercial insurance companies operate for profit. They either design products that reduce the probability of occurrence to control risks. Items with higher probability are excluded from liability in related products. For example, the insurance company will replace the bicycle theft insurance with theft insurance because the theft insurance covers a wider population and the probability of disasters is lower; for health insurance, the insured will be required to conduct an annual physical examination, and the insurance company will Except for the site of the lesion. These are necessary for the insurance company, otherwise it will not be able to maintain its own operations, let alone provide windshields and rain umbrellas for policyholders.

But for policyholders, they need to look at the product's coverage when choosing relevant products. The same family property insurance, some together protect antiques, calligraphy and painting, etc., some do not; the same health insurance, except some have liability, some do not. See exactly what is and is not guaranteed before deciding whether to buy or not. In this way, your money is spent unjustly.

Underwriting does not mean that the policy is in effect

It is worth noting: Judging whether an insurance contract is effective cannot be based only on the payment and underwriting standards, but must be determined in accordance with the specific provisions of the insurance clauses on the effective requirements. Underwriting is only a sign of the establishment of an insurance contract, and it cannot determine whether the contract Effective, only when all the agreed conditions have been established, the contract will be formally effective, and the insured person will begin to bear the corresponding insurance liability in the contract.