Insurances are instruments designed to protect individuals and organizations from financial loss, in exchange for a payment.
Insurance companies need to determine whether they can provide insurance and the terms in which it should be provided in each case. To do this, they evaluate certain circumstances. This is exactly what insurance underwriters are responsible for; they analyze insurance applications to determine whether a risk is acceptable or not, as well as the coverage that the client should receive.
They are also responsible for determining an appropriate premium -which is the amount that the client should be charged for in exchange for the insurance-. The factors they consider depend on the specific insurance that the applicant is looking to obtain.
For example, in health insurance underwriters considerate variables such as;
-Age: People under 40 usually need to pay less because they are not as likely to die as people over 40. In addition, insurance companies set a certain age limit; people older than that are not eligible for insurance since their risk of dying is too high.
-Current health and existing heath impairments (such as heart disease, lung disease, kidney disease, cancer and diabetes)
-Family History
-Other risk factors -such as smoking, other addictions and substance abuse.
-Occupation. Just when such occupation is considered hazardous to a person's health or likely to increase the chances of an accident.
In addition, underwriters help determine whether an insurance applicant is over-insured- In case they are, it is possible that there are circumstances that the applicant has not disclosed and that might severely increase the risk for the insurance company.
Insurance companies need to determine whether they can provide insurance and the terms in which it should be provided in each case. To do this, they evaluate certain circumstances. This is exactly what insurance underwriters are responsible for; they analyze insurance applications to determine whether a risk is acceptable or not, as well as the coverage that the client should receive.
They are also responsible for determining an appropriate premium -which is the amount that the client should be charged for in exchange for the insurance-. The factors they consider depend on the specific insurance that the applicant is looking to obtain.
For example, in health insurance underwriters considerate variables such as;
-Age: People under 40 usually need to pay less because they are not as likely to die as people over 40. In addition, insurance companies set a certain age limit; people older than that are not eligible for insurance since their risk of dying is too high.
-Current health and existing heath impairments (such as heart disease, lung disease, kidney disease, cancer and diabetes)
-Family History
-Other risk factors -such as smoking, other addictions and substance abuse.
-Occupation. Just when such occupation is considered hazardous to a person's health or likely to increase the chances of an accident.
In addition, underwriters help determine whether an insurance applicant is over-insured- In case they are, it is possible that there are circumstances that the applicant has not disclosed and that might severely increase the risk for the insurance company.
