The role of an underwriter should not be underestimated

The varied roles and responsibilities of an underwriter should not be underestimated. The multi-faceted contribution an underwriter makes to any insurance business transcends simply assessing risk. In the second of Optalitix series of blogs we take a further look at the underwriter and how everything from sales to technology falls within the skill set.

‍Pricing and profitability are common sense indicators of a successful insurance business, but the underwriter's value add to the determination of price and profitability is often overlooked. Lead underwriters are essential to the identification of the correct pricing level of any insurance product, and this price will have a direct impact on profit. This pricing is often a difficult task directly associated with the premium rates that are set.

The setting of quote priorities also falls within the remit of the underwriter, up to 50% of all quotes received will be priced by an underwriter but only 20% will be bound, and so setting these quote priorities is vital. It is of paramount importance that high-priority quotes are not missed by an underwriter or left waiting in a queue as a competitive environment will see a slow response lead to loss of business. Pricing, profitability, and priorities are 3 Ps that ensure efficient and effective underwriting and require a wide range of business skills and acumen, not often associated with the role of an underwriter, but often lost on the insurance sector is the business development value an underwriter can add.

The increase of quote volumes and ability to source and identify new quotes from various channels such as larger portals or MGAs is important. Often these new channels will require technical integration and system builds that an underwriter will need to be party to so as to facilitate what can often be a complicated process. With the demand for transactional immediacy, the fact that underwriters deliver on so many functional elements so quickly enables the insurance industry to scale grow and respond with an agility unrivalled in a number of other verticals.

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