29836922 Underwriting for Health Insurance SIHS

8/8/2019 29836922 Underwriting for Health Insurance SIHS

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Symbiosis Institute of Health Science, Pune


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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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29836922 Underwriting for Health Insurance SIHS

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