How to think like an underwriter

Have you ever thought about what you or your employees need to change from an "insurance agency" to a true "insurance professional"? I have worked for the company's operators for more than 30 years. I was originally an underwriter and worked with sales agents most of the time. One thing has never changed. Once the underwriters - always the underwriters, this thought process has been good for years. I believe that the current lack of agency training has caused huge losses to agents. The ability to succeed.

Underwriters' work is to analyze the variables that constitute the risk factors of potential customers to see if the characteristics meet the expected profile of the premium received and the carrier's expertise. In the personal line, the rate is strictly regulated by the state, so operators must submit rates based on the risk characteristics they want to insure. Rates cannot be transferred to accommodate risk. This is different in the commercial line where risk characteristics can be considered to determine the appropriate ratio for a given risk. In either case, the underwriters need to know the variables that make up a particular risk in order to make an informed decision. First analyze the risks and predict the information the underwriters need to make decisions; this is the first step toward thinking like an underwriter.

Before you go this route, maybe you will ask yourself; why should I think like an underwriter? I am an agent. My job is to identify potential customers and insurance companies. The job is to determine if they are eligible. Of course - if you are an "insurance agency" then it will be useful! Entering the next level to become a true "insurance professional" requires more effort, but rewards are worth the extra effort. Rewards are customers who value your opinions and expertise. Rewards are a reputation in a small, conservative world that is ethical and in the best interests of all parties involved. If you want to build a business for a long time, these rewards are priceless.

I will outline some of the very common situations I have seen over the years and how your agency can benefit from being more like an underwriter. Have you ever had a problem with the underwriters replying to you, for example because of a series of problems that exceeded the reinsurance threshold? Do you find yourself having to return to the insured multiple times to get all the information the insurer needs? Isn't it?

Please continue to the second part of this article.

---

Orignal From: How to think like an underwriter