- The fundamentals of insurance underwriting
5 December, 2019
9:30 am - 5:00 pm
- City of London
Since the first days of Edward Lloyd, when merchant venturers started to “underwrite” each others’ voyages, underwriting has been at the heart of the insurance business.
“Intelligent risk taking” is the essence of underwriting: knowing what risks you want to take, or can take on, and knowing how much to charge: “there is no such thing as bad risk, only a bad price”.
In our unique industry, we don’t know the product cost when we sell the product, so the language of underwriting is very much the language of insurance.
This “fundamentals” course is not really designed for underwriters at the start of their professional career but for professionals in other functions whose role brings them into contact with, and requires them to understand, this vital part of the insurance process.
Whether your role is in Claims, Compliance, HR or Finance you’ll probably want to understand:
- What is involved?
- What decisions are made?
- What will influence those decisions?
- What skills and knowledge are required?
- What does success look like and what are the risks?
The Course Agenda
The underwriting process
- Revising the link between capital and underwriting capacity: the insurance cycle
- Accepting the risk
- Delegating underwriting authority
- Setting and monitoring claims reserves
Key functions of the underwriter
- Assessing the risks being presented
- Deciding whether to accept the risk
- Determining policy terms and conditions
- Calculating an achieving an appropriate premium
Factors to be considered within risk evaluation
- The factors that determine
- Are you allowed to write the risk?
- Do you want to write the risk?
- How much risk can you accept?
- How much you will charge?
- Exposure management and re-insurance
The two main pricing techniques
- Experience v exposure rating
- Negotiating the price
What should be covered within the insurance contract: the policy
- Revising the insurance principles
- Elements of an insurance contract
- The language of terms and conditions
- Complying with legislation: Consumer Insurance Act 2012, Insurance Act 2015
The principles of setting and maintaining adequate claims reserves
- Claims paid, claims outstanding, IBNR, prior year reserve release and IBNER
The concept of portfolio management
- Cross class considerations
The underwriting control environment
- Underwriting procedures
- Regulation and compliance
How the practice of underwriting might be changing
- From aggregator websites to insuretech algorithms
Meet The Tutor
John has worked in insurance since 1991, in senior learning and development and compliance roles in both insurers and brokers. A training consultant since 2005, John designs and delivers interactive regulatory, risk, financial and business skill training for brokers and insurers. He brings a unique blend of experience, commercial awareness, credibility and pure energy. More importantly he brings a broad multi functional perspective: the antidote to the traditional insurance “silo culture” and is equally effective at all levels: from induction training to Board level.
John has a BA (Hons) in History from Kings College London, holds a financial qualification from the Open University, a Diploma in Management from Henley Management College and is a Member of the Chartered Institute of Personnel and Development. His published articles have covered financial crime, learning and development strategies, operational risk management and Solvency II.
Who is this course for?
This “fundamentals” course is designed for professionals whose role brings them into contact with, and requires them to understand, this vital part of the insurance process:
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With first hand industry knowledge and an intimate understanding of the regulatory environment, we always guide you with an expert (and friendly) hand.
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Sessions are practical workshops not PowerPoint lectures. All courses are limited to no more than 14 attendees, so we’re able to explain concepts in the context of your business.