Underwriter Advice Needed...

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Gmazzeo
Insurance Journal Fan
Posts: 2
Joined: Tue Jan 14, 2014 2:19 pm

Underwriter Advice Needed...

Post by Gmazzeo »

Hello everyone. I am a recent graduate with a degree in Business Economics. I landed a job as a Junior Underwriter in a special lines sector of the insurance industry. We provide short-term medical insurance to insureds who are outside of their home country for less than a year. We also provide travel insurance such as trip cancellation, emergency evacuation, lost luggage coverage, etc.

I have no prior experience and in this industry it is hard to find any materials on how to underwrite. I do not know if the way I am being trained is similar to other lines of insurance but I wanted to reach out and see if anyone had any suggestions or helpful sites that could ease my learning curve.

I am only 6 months in and I believe I have a very good mentor. He tells me that their is no one way to underwrite and every account will most likely be underwritten differently than other accounts. I am beginning to understand the relationships between TPAs, Producers, Carriers, etc. I am becoming familiar with how commission structures are set up. My main areas where I seem to be struggling are when it comes to rating an account.

Does anyone have any advice on how to help me understand the different ways I can underwrite or some tips to keep in mind that will help me along the way? I truly appreciate any and all the help I can get. It means a lot to me. Thank you for taking the time to read through my post and I hope I can pay it forward on this forum as I start to better understand the machine that is the insurance industry.

Thank you...

-Garrett
ziiqui
Insurance Journal Enthusiast
Posts: 20
Joined: Fri Sep 25, 2009 11:39 am

Re: Underwriter Advice Needed...

Post by ziiqui »

Simply write a C.O.C Policy (course of construction).
Gmazzeo
Insurance Journal Fan
Posts: 2
Joined: Tue Jan 14, 2014 2:19 pm

Re: Underwriter Advice Needed...

Post by Gmazzeo »

What is a C.O.C and how would it assist me at this point of my career?

-Garrett
Lanne14
Insurance Journal Fan
Posts: 1
Joined: Tue Jan 21, 2014 12:20 pm

Re: Underwriter Advice Needed...

Post by Lanne14 »

By now you know underwriting is a decision making process.
First you must know what your employer considers to be a profitable book for you? What is the goal with your underwriting –what are your goals in place? Your superior or mentor should be able to tell you what your employer considers a successful underwriting year. What is the mission statement of your company/department? What is acceptable loss ratio? Expense ratio? Combined ratio?
Then consider what your company’s application process is?
Do you see all applications submitted or are they screened for acceptance criteria prior to your review?
Are you able to modify coverage offered or is your program definitive and there is no leeway – ie deductible or modifications of coverage available? – if definitive – the underwriting process is simple- you either accept it or not .
Are there specific rating characteristics or can they also be modified –
If you can modify either terms or rates , you must be aware of past historical data and / or actuarial data in order to make an educated decision on what will create what is a defined profit for your company.
Once you implement your underwriting decision, monitor it to determine you are on the correct course of action.

Feel free to contact me with any additional questions
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