Know About Insurance Underwriting

There are many types of insurances which are offered by many different insurance companies. According to the risk, the type of insurance will vary. Some people of the insurance company called the underwriters will do all the procedures for finding out the best insurance policy. The process which is done by the underwriters is called as underwriting process.

During the process of underwriting, risks are being classified, selected and rated. This process is also called as the risk selection process or risks assessment process. Here depending on the risks, the insurance company will provide the insurance. All the work is done behind the screen by the insurance company.

The main theme behind underwriting is mainly to decide the risks exposure and also regarding the cost of the insurance premium which should be paid by the insured. Thus, the process of underwriting will make money for the insurance companies as well as for offering the different insurance policies for the applicants.

Suppose, if we take the case of underwriting automobile insurance coverage, here driving records of the individual will be considered. In the same way if we take the case of life, health or, medical underwriting, the health status of the applicant is to be considered.

Underwriters have the freedom to either refuse the risk or to provide a quotation with some exclusions for which the premiums have to be paid. For getting the process of underwriting to be done very quickly, go for the automated underwriting process system which encodes the results quickly when compared with the manual underwriting process.