Underwriting Process

The aim of this chapter is to illustrate the process of underwriting risks and issuing policies. The standard process is made up of the following five stages: Acquisition information and consideration of Demand & Need quotation, processing a proposal, verification/waiver of underwriting limits, policy issuing and premium receipt. The activities that relate to three different types are illustrated: the process for non-life retail and life insurance products, the process for industrial risks and, the process for standard contracts sold via the bankinsurance channel or distance marketing. Each of these three processes has a number of differences as compared to each other. After the introduction of the IDD regulations, the traditional commercial approach has changed so as to place far greater emphasis on preliminary assessment of requests from customers and their level of knowledge and awareness. In the case of industrial risks, the process of underwriting and quotation of related risks are not standardised. Each risk has to be assessed specifically. In the process of underwriting standardized contracts, no tariff waiver is foreseen. Lastly, the two main post-sale operations tied to the underwriting cycle are explained: the renewals and the technical and administrative endorsements.