Underwriting in the context of insurance is appraisal of risk. Underwriters possess expertise in the assessment of risks and costing them. The underwriter’s job demands an array of skills. They must be detail-oriented, logical, analytical, objective and able to make intelligent decisions using sound judgment. An underwriter also needs curiosity, a genuine interest in individual client needs and a high level of personal integrity. The book gives a strategic perspective to underwriting. Financial statements of a company provide a useful tool for the underwriter. Through the financial statements the underwriter is able to gauge the financial strength of the insured. The book also covers financial statement analysis, an useful aid to the underwriter in detecting moral hazard. The pricing of an insurance product is the responsibility of the underwriter. The rates developed by the insurance actuaries form the basis for pricing. The underwriter should charge a price that is adequate to cover the expenses of the organizations while being easily affordable by the insured. The book brings to the fore the subtlety of insurance pricing. Exposure assessment and management is crucial for assessing the qualitative and quantitative risks under the insurance policy. This is done by collecting information from various sources like, trade publications, company’s own data, and the proposer’s application form. Insurance, like any other business needs to have corporate objectives and financial targets. Business selection enables the insurance company to translate its vision into reality. The book also deals with the factors that affect business selection and product designing policy of the insurance company.
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