Introduction to General Insurance Underwriting

Subject Content

Standards of risk

  • Below standard risks

    Obviously, insurers would prefer to accept the least risky businesses. Nonetheless, some insurers may choose to take on what is termed as more riskier 'below standard risks' for a variety of reasons.

    List three reasons you believe an insurer might take on such below standard risks.

    Submit your answer to reveal a suggested response.

  • Innovative, alternative methods for dealing with below standard risks

    Although higher premiums are an obvious choice for dealing with below standard risks, what do you believe to be more innovative, alternative methods?

    Submit your answer to reveal a suggested response.

  • Above standard risks

    Above standard risks are sought by every insurer to enhance their portfolio. They are risks that have protective measures in place to reduce the chance of incurring high losses.

    These sorts of risks may attract lower premiums and/or improved terms, because the probability of claims is below that of the standard covers.

    List three examples of what you believe an insurer would consider to be above standard (acceptable) risks.

    Submit your answer to reveal a suggested response.