How Underwriters Shape Insurance Quotes
on: September 16, 2009, 5:39 am
Author: Kyle Fitzsimmons, InsuranceAgents.com
many people know that all the factors that go into determining
how high or low insurance quotes will be are determined
by underwriters. Although they’re aided by a computer program,
underwriters must analyze all applications the insurance company
they work for and determine whether the applicant will yield high
quotes, low quotes, or is just altogether uninsurable.
to an article recently published on InsuranceAgents.com, underwriters are the
life force of any insurance company. “Their opinions play
an integral role in the success of a company because if an underwriter
is too conservative, the company will most likely lose customers
to competitors,” states the article, titled ‘Understanding
the Significance of Underwriters. “On the other hand, if
an underwriter makes too liberal of decisions, the company will
have to pay an excessive amount in claims.”
don’t do it alone though. They are placed with the huge
burden of keeping the insurance company they work for afloat and
have the assistance of computer applications to determine how
to manage risk more efficiently. With the help of the program,
underwriters determine how risky the applicants are and can thus
determine how high or low their quotes will be or if they are
just too risky to insure.
is important to know what factors go into determining risk.
Whether it is auto, health, home, or life insurance, there are
a different set of factors for each type of insurance. “As
an individual looking to obtain an insurance policy, it is imperative
you familiarize yourself with some of the factors that underwriters
use to judge potential policyholders before applying,” the
InsuranceAgents.com article states.
underwriters determine premiums for the policy the applicant has
selected, they do not hold all the power. Visit InsuranceAgents.com
to learn ways to lower risk and get on the fast track to low cost,
effective insurance today.
Contact Details: Tom Lustina
435 North LaSalle
614 286 0193