Underwriting Procedures

Proposer must ensure that the information provided is full and accurate. The U/W will then assess the risk and decide whether to accept or reject the risk. 

A) QUOTATION:

You are provided with a quote/price along with any other benefits of the particular product and any T&C i.e. who is clearing up rubbish after double glazed windows are fitted in your home.

With personal lines insurance, an insurer must draw specific attention to any significant limitations and exclusions that apply to its contracts. INCLUDING any terms that might vary from other competitors. 

T&Cs sometimes referred to as subjectives. 

When this information is provided by the insurer, it is referred to as a quotation. 

Within the quotation pack there will be:

-cover letter, outline of risk to be insured and a statement of fact. 

This ensures that the contracts are as clear as possible. The exising best practice is within the Consumer Rights Act 2015. 

B) Proposal forms and declarations:

Consumers:

In most cases, a proposal form is the most common mechnasim which the u/w receives information on the risk. 

Proposal forms also include a declaration (stating it is true and correct).

Telephone-based quotations and use of the internet: 

Consumer Insurance (Disclosure and Representations) Act 2012 and Consumer Rights Act 2015 deal with assumptive statements and tick boxes, particular concerning e-trade and internet routes to market. Important because they both say must be clear and avoid assumptive answers.

Internet-based questions will decline a quote entirely if it raises a red flag, i.e. will not send it through to be manually checked. 

Commercial package risks:

Usually deal with packagse for risks such as flats/ property owners, shops, salons etc. 

Larger commerical risks:

Proposal forms  are often insufficient for many large and complex risks i.e. industrial complexes because of the information that is required. Even for small-medium sized commercial risks i.e shops and offices. 

-small/medium sized commerical risks - presentations will be revised alongside online question set by insurer. 

-larger/complex commercial risks - presentations are supplemented with the insurer survey etc.

Questions in th proposal form (general and specific):

General: name, address, occupation, period of insurance, past insurance history 

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