Introduction to General Insurance Underwriting

Subject Content


You've reached the end of this Introduction to General Insurance Underwriting online unit.

Please keep the following points in mind:

  • Underwriting is the technical aspect of conducting the business of insurance.
  • Insurers may accept both above standard and below standard risks.
  • Insurability criteria include the following:
    • the potential loss must be fortuitous
    • there must be adequate numbers
    • the chance of loss must be assessable.
  • A risk may be deemed uninsurable if it is:
    • against the public interest
    • beyond the capacity of insurers.
  • If a risk is deemed insurable, underwriters can approach it in one of two ways:
    1. individual risk underwriting—underwriting risks on a case-by-case basis
    2. portfolio underwriting—underwriting a large number of risks (or similar product types).
  • The terms and conditions of risk acceptability are formally recorded in a policy document.