Insurance Underwriter Is? Types and Stages
Insurance Underwriter Is? Types and Stages – If you have ever purchased a health insurance product, you may be familiar with the terms underwriter and underwriting. When you make a health insurance claim to feel the benefits of the insurance you buy.
You will not get the funds right away. You have to go through the checking stage first. Whether your illness comes from personal negligence or not. So that’s where the role of an underwriter plays. What is an underwriter? Here’s the review.
What is Underwriter?
An insurance underwriter is someone who is in charge of analyzing, checking, and examining prospective customers or insurance customers to assess the customer’s eligibility for insurance benefits.
While underwriting is the process of identifying prospective customers and insurance customers before receiving insurance benefits. Underwriting is a fairly long process in the insurance world. However, not all types of insurance require an underwriting process. One type of insurance that requires this process is health insurance.
An underwriter will identify prospective customers whether they are suitable to get the benefits of certain insurance products with the calculation of the risks they have. The underwriter is also tasked with determining the eligibility of a customer to receive insurance claim funds.
For example, a customer will buy a health insurance policy. Then the underwriter will conduct an analysis by calculating customer risk data. So that it can determine the amount of premium and benefits. Then when the customer experiences health problems, the underwriter will check again.
Is the disease he is suffering from in accordance with the provisions of the insurance product policy he purchased. If it turns out that the health problem comes from negligence, for example, bad habits of smoking, drinking alcohol, and others.
Then the underwriter will make a decision on the insurance claim fund. Whether the funds will be given in full or not. In conditions of customer negligence, usually the insurance will provide a partial claim and even worse the policy can be rejected.
Types of Underwriters
The first underwriter or often we are familiar with insurance agents. This underwriter will analyze the prospective customer and calculate the risk of the prospective customer. The task of the first underwriter is to determine the feasibility of a prospective customer based on the risks he or she has.
Financial Underwriter deals with the determination of premiums and insurance products. If the prospective customer is included in the eligible category. Then, the financial underwriter will determine the appropriate policy as well as calculate the premium which is influenced by the risk level of the prospective customer.
Medical Underwriter is an underwriter whose job is to identify the eligibility of prospective customers for the health conditions of prospective customers.
Not all serious illness conditions can be accepted by insurance companies. Therefore, there are several insurance companies that require medical check-ups. Even at the time of claim, the underwriter still plays a role in identifying the customer’s health problems.
Data Submission Stage
First, the underwriter will receive data submissions from prospective customers. The data relates to medical history and other general matters such as biodata.
Risk Identification Stage
Second, the underwriter will identify the risks that prospective customers have. This identifier can come from medical risk tables, medical history, and health conditions.
Risk Grouping Stage
After that, the underwriter will classify the risks of potential customers. What level of risk does it go to? Several levels of risk are standard risk, declined risk, and others.
Finally, the underwriter will determine the decision on the submission of the prospective customer. Is it accepted, conditionally accepted, or rejected.