While underwriting may be a common aspect of the insurance industry, the benefits a good underwriter can deliver are far from run-of-the-mill. In fact, in a lot of ways, your success depends on the expertise of your underwriter.
So how do you know if you've got the right underwriting partner? By taking the time to understand the basics of an underwriter's role, the valuable expertise a good underwriter can provide, and how it all can benefit your business, you'll be on your way to selecting an underwriting partner that's right for you.
Uncovering the role of the underwriter
Simply put, the role of an underwriter is to assess risk in order to determine how much an insurance company should charge for insurance policy premiums. Once determined, underwriters then work with agents, brokers and those responsible for sharing policy information with clients, to familiarize them with the coverage details associated with the policy. Should there be a change in insurance conditions, or a material change in the risk associated with a customer's policy, the underwriter analyzes the situation and advises the insurance company on whether it should continue the policy as currently written or modify the coverage and offer new terms to the customer.
All of this is no easy task. With fluctuations in customer risk and consistently changing variables, these skills are truly specialized and highlight the importance of the underwriter's role.
Gaining expertise you can count on
Tasked with knowing the industry top to bottom, underwriters are able to fully grasp the risks associated with a policy. But the best underwriting partners do all this and seek proactive solutions that can reduce or eliminate risk on future claims — delivering valuable protection for your business.
When you team up with the right underwriting partner, you can rest assured that any policy-related situation will not only be handled correctly, but also in a way that serves your best interest.
Creating a strong foundation for your business
Why is it important to clearly understand the role of the underwriter and how underwriting expertise can benefit your business? Because it brings you one step closer to finding a partner that's right for you.
A solid underwriting provider is critical to building a strong foundation for your insurance business. Take the unparalleled expertise of an underwriter's industry knowledge and pair it with a vested interest in driving your business forward, and that's a winning combination.
When selecting your next underwriting provider, be sure to look for one that understands the ins and outs of the industry, welcomes revenue sharing, and is keen on building long-lasting partnerships. With these qualities, your next underwriter could become your behind-the-scenes secret weapon.
Joe Alberti is vice president of Specialty Products & Programs for Fortegra Financial Corporation (a Tiptree Inc. company). He can be reached by sending email to jalberti.fortegra@gmail.com.
The opinions expressed here are the writer's own.
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