Philip Deramo has extensive experience in insurance underwriting, and
he knows it’s an essential aspect of the insurance application process.
When an individual makes an application for insurance coverage, he/she
is asking the insurance company to take on the potential of having to
pay a future claim against the insured risk.
In some instances,
like life insurance, the claims can be quite expensive. It is very
important that the insurance company not take on great risks during the
application process, which is where underwriting comes in.
What is underwriting?
In a nutshell, underwriting refers to the process of evaluating the potential risks that are associated when considering an insurance applicant. During the underwriting process, important decisions such as the value of coverage and premiums to be paid are considered against a number of factors. The work of an underwriter like Philip Deramo is to attempt to protect his insurance company’s books from risks that can cause losses. With this in mind, it’s quite possible for an applicant to be denied coverage if they present too high of a risk.
Factors to consider
Continuing with the life insurance example mentioned before, various factors will be considered. For starters, the underwriter will want to consider the probability of the applicant living longer than the average life expectancy. Underwriters will also consider factors that can cause the applicant not to realize their life expectancy, including (but not limited to) history of health issues, current occupation, income and lifestyle habits, among others.
In some instances,
like life insurance, the claims can be quite expensive. It is very
important that the insurance company not take on great risks during the
application process, which is where underwriting comes in.What is underwriting?
In a nutshell, underwriting refers to the process of evaluating the potential risks that are associated when considering an insurance applicant. During the underwriting process, important decisions such as the value of coverage and premiums to be paid are considered against a number of factors. The work of an underwriter like Philip Deramo is to attempt to protect his insurance company’s books from risks that can cause losses. With this in mind, it’s quite possible for an applicant to be denied coverage if they present too high of a risk.
Factors to consider
Continuing with the life insurance example mentioned before, various factors will be considered. For starters, the underwriter will want to consider the probability of the applicant living longer than the average life expectancy. Underwriters will also consider factors that can cause the applicant not to realize their life expectancy, including (but not limited to) history of health issues, current occupation, income and lifestyle habits, among others.
