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TECHNICAL UNDERWRITING

(RETAIL UNDERWRITING)

TECHNICAL UNDERWRITING

• Under Retail Underwriting, Technical underwriting is one of the step for underwriting process.
• Once the completeness of the proposal form is ascertained, the information contained is examined further.
• The various section of the proposal form are analyzed to correlate information to determine the individual’s risk profile.

VARIOUS SECTIONS:

COMMON INFORMATION

 A large part of the common information is similar across products. A part of the use of the common information i.e date ,place of signing proposal form and instrument date etc. is vastly understated and is necessary for ensuring compliance with regulation and legal provision.

PERSONAL INFORMATION

 A quick and simple check of the personal information like telephone no., residence address, income level etc are examined and if any indication of error is found a closer scrutiny is called for.

VERIFICATION DOCUENTS

Some insurer also ask for documents for identity , date of birth, adress proof along with proposal form as the verification documents to have a check with the information mentioned in the proposal form.

FINANCIAL UNDERWRITING: It revolves around ascertaining insurance worthiness and premium paying capacity and to avoid over insurance i.e if more than 25% of annual income is spend on insurance it is considered as over insuring.

CUSTOMER WITHOUT INCOME: Individual without any source of income pose a challenge to underwriting like tuition income, rental income etc. In such cases maximum sum assured limit is advised to restrict exposure.

INSURANCE FOR SINGLE LIFE: If the sum assured is in line with family insurance details then the proposal can be looked positively , else in case of high sum assurance medical test could be conducted on such lives. Special care is to be taken in case of non-earning single life insurance especially in housewife and student case.

THANK YOU!