When it comes to insurance, the major concerns for most purchasers are coverage and price. Insurance companies need to offer the most comprehensive coverage at the best pricing in order to win new clients.
But how do the insurance companies determine what kind of coverage to offer and at what price? 
The answer is in Insurance Underwriting.
Insurance underwriting is the meticulous process of evaluating the individual or business risk profile by an insurance carrier and determining if they are willing to offer coverage to potential policyholders; and if so, at what pricing and at what kinds of limits and coverages.
The term “underwriting” is something that spans multiple industries. You may have heard it while applying for a mortgage or financing on a new car or while being screened to obtain Life Insurance. The history of the term has its roots back to England during the era of the explorers to the new world. The original “Lloyds of London” insurers would accept some risk for the Ship’s voyage in exchange for premium. The individuals would literally write their name underneath the text describing the event, cargo, or crewmember they would be assuming the risk for. Hence the term, under-writer.
Understanding Insurance Underwriting is becoming more important in the age of big data and predictive modeling. Insurance carriers are utilizing AI and software to analyze the massive amounts of information to accurately gauge the likelihood of the policyholder to make a claim, enabling them to establish fair and sustainable pricing models.
As the market “hardens” these pricing models are put to the test. The combination of human underwriting by traditional methods, combined with automated underwriting from predictive modeling formulas create a dynamic interplay between the human experience and technology.
It is important to know the information being submitted for underwriting is complete and accurate to ensure this process yields the most competitive and comprehensive coverage for you. Your Independent Agent at Ten Eyck Group will assist you in making sure the proper underwriting information is compiled and presented in the best light possible so that you have the best options for insurance available to choose from. Not all providers take the time and care that our team at Ten Eyck Group does. Give us a call!