Underwriting Considerations

Underwriting is one of the most important aspects of Insurance process.  It is the underwriter’s prudence to make sure that the right premium is charged for the coverage being provided.  Every insurer or reinsurer has its own set of underwriting guidelines to help the underwriter determine whether or not the company should accept the risk. The information used to evaluate the risk of an applicant for insurance will depend on the type of coverage involved. 

In a sense, "underwriting" implies accepting 'liability' to indemnify the insured against a possible loss, for a monetary consideration called Premium (or in Takaful, often referred to as 'Contribution'). For this reason, underwriters evaluate the risk based on certain facts and figures about the subject matter proposed to be insured. These facts and figures are generally referred to as underwriting submissions.

(to continue....)