How Underwriters Shape Insurance Quotes


Released on: September 16, 2009, 5:39 am
Author: Kyle Fitzsimmons,
Industry: Financial

Not 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.

According to an article recently published on, 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.”

Underwriters 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.

It 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 article states.

Although underwriters determine premiums for the policy the applicant has selected, they do not hold all the power. Visit 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
Chicago, IL
614 286 0193


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