29836922 underwriting for health insurance sihs
TRANSCRIPT
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Importance ofUnderwriting
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Abhishek Nirwal (042)
Dr. Amit Bhartiya (035)
Dr. Mihir Gharia (026)
Dr. Niranjan Gaikwad (041)
Dr. Priyanka Ajmani (084)
Shreshtha Kanojia (019)
Rozween Sethi (018)
Group No.4
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Underwriting DefinedUnderwriting: The process of selecting
policyholders by recognizing and
evaluating hazards, establishing prices,
and determining policy terms andconditions.
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Purpose of Underwriting
Develop and Maintain
a Profitable Book ofBusiness
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Types of UnderwritersUnderwriters
Line Underwriters Staff Underwriters
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Line Underwriters Evaluate Individual Policies and Applicants and
Are Usually Located in Branch or Regional
Offices
Duties: Select insured
Classify risks
Determine proper coverage
Determine appropriate rate
Service agents and/or policyholders
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Staff Underwriters Generally Located in Home Office. Responsible
For Setting Corporate Policy
Duties: Formulate underwriting policy
Evaluate experience
Research and develop coverage and forms
Review and revise rating plans
Prepare underwriting guidelines and bulletins
Conduct underwriting audits
Participate in industry associations
Conduct education and training
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The Underwriting ProcessGather
Information
Evaluate
Information
Select
AlternativeImplement
Decision
Monitor
Results
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Importance of UnderwritingFunction to the Company
It is the backbone of the insurance business. It
functions as a gatekeeper for insurers by
deciding which risk is to be accepted and
which is to be rejected.
When the issue is underwritten, the company
is assured of the required capital.
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Individual underwriting Health insurance company look at a persons
age, sex and health history to decide whether it
will cover the individual or not and how much
will it cost to provide the coverage.
The purpose of the individual underwriting is to
assign each insured an estimate for the frailty
factor i.e. to determine the so-called pricing
mortality rates used by the insurer for premium
calculation.
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Group underwriting A group of investment banks which jointly
underwrite and distribute a new security
offering, also called purchase group or
investment banking syndicate.
Underwriter considers the characteristics of
the whole group not of individual members
who form the group.
Individuals are not characteristically
underwritten rather they qualify for thegroup coverage by virtue of the group itself
having qualified.
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UnderwritingCompetencies
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What is a Competency?
A competency is a desired skill, trait or
behavior that leads to a desired, superior
performance result.
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Underwriting CompetenciesTechnicalStrength
Analytical/CriticalThinker
CustomerFocused/StrongInterpersonal
Process/TechnologyProficiency
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Personality Traits Decisive: They get paid to make
business decisions (good underwriters
make the unpopular decisions well)
Analytical: Theyre trained to gatherinfo, analyze, and implement
Judgmental: Theyre critical thinkersthat think in terms of cause and effect
and contingencies
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Steps To Take If UnderwritingInterests You
Review Competencies
Talk To People in Business to LearnMore About the Job
Job Shadowing
Insurance Coursework
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CurrentChallengesSymbiosis Institute of Health Science, Pune
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Underwriting Challenges Pressure on the producer underwriter to
quote prices that could make or break
deals.
Under pricing due to blind faith on
underwriters judgment and market
pressure
Risk assessment and producing
capabilities
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Underwriting Challenges Contd Underwriters might be too wary,
thereby ignoring the opportunity cost
of not assuming certain risks
Need to identify and manage
emerging trends in claim experience.
Underwriters need to be on guard
for deteriorating loss ratios
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Future of UnderwritingTELEUNDERWRITING
AUTOMATED FORM SUBMISION
LEGISLATION OR CODE ON THE
ASPECT OF GENETICS AND AIDS
INFORMATION ISSUE.
Automated future
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TrendThe Underwriting Cycle: The Rule Of Six
Latest news states that the underwriting losses are 37 % for the
FY09.
A cycle can be said to begin wheninsurers tighten their underwriting
standards and sharply raise premiums
after a period of severe underwriting
losses.
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Symbiosis Institute of Health Science, Pune