Providing valuable analytics through underwriting reviews

Aimed at US-based insurers, this Focus report explains how the Swiss Re Americas team conducts underwriting reviews for casualty and property portfolios, respectively.

For insurers, the old adage "you don't know what you don't know" can be problematic. As competitive pressures increase, insurers employ any number of strategies to manage the cycle. But they're often constrained by a limited view of their underwriting practices in that they're unable to see the total picture at any given time.

As part of its commitment to delivering practical expertise, Swiss Re’s dedicated underwriting review team works with clients to identify common problem areas and implement underwriting best practices. The team delivers detailed analysis and recommendations to the client through an objective, disciplined assessment of underwriting files.

By evaluating a broad range of clients throughout the year, Swiss Re is able to detect key underwriting trends within the primary insurance industry.

The underwriting review process is organised around the following five categories:

Information development: Did the underwriter collect sufficient information to effectively evaluate the account?
Risk assessment and selection: Did the underwriter sufficiently scrutinise the account and arrive at a strong understanding of the operations, exposures, hazards and controls?
Terms and conditions: Did the underwriter adequately structure terms and conditions of the contract, including expected risk improvement requirements or risk mitigation actions?
Pricing practices: Did the underwriter develop a premium charge that adequately reflected the exposures present and the coverages afforded?
Account management: Was the policy properly issued? Did the underwriter operate within delegated authority and handle mid-term underwriting issues appropriately? Is the file organized and maintained adequately?

Through these reports, insurers will gain an understanding of how Swiss Re’s reviews highlight underwriting trends and results, explain important suggestions or recommendations and summarise best practices that help drive underwriting excellence.

Providing valuable analytics through underwriting reviews

Property

Casualty