What is an insurance underwriter?

28 June2021

When you apply for insurance - whether that's car insurance, home insurance or life insurance - whether or not your application is accepted and how much it will cost is the responsibility of an insurance underwriter.

These days, most applications for insurance are considered automatically by computer systems. But the criteria the system looks for in an application are still decided by an underwriter.

There is a balance between offering premiums that are appealing to customers, and trying to cover any potential losses from settling claims.

How do they decide how much to charge?

This, of course, depends on the type of insurance. When it comes down to it, however, insuring people is a matter of assessing the risks.

Insurance companies will ask you for relevant information about yourself and, from this, decide how risky it would be to insure you. If they deem you low risk, you will probably be offered lower premiums.

For example, somebody applying for car insurance who has been in a few collisions will probably be charged more than somebody with a clean record. If a person applying for critical illness cover or life insurance has recently had a serious illness, they may not be offered cover until they have recovered significantly. Factors like being a smoker can also affect life insurance.

Find out more about different kinds of insurance here!

What if I am turned down for insurance?

It's fairly unusual to be turned down completely for insurance without very good reason. It is more likely that you will be charged more for your premiums, or your policy will not cover certain things. For example, if you take part in dangerous sports, a life insurer may not cover you for death caused by dangerous sports.

If you are turned down for insurance, or you are charged more than you would like, it is recommended that you shop around. Another insurer may be willing to offer you a better deal.

Make sure you get the best deal! Click here to compare insurance.

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Tags: insurance, car insurance, home insurance, life insurance, underwriters, policy, claims, family

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