underwriting,what does it mean?

Question

I recently had a disability hearing,and I called to find out what if any decision had been made.They told me there was a decision,but it was in the underwriters right now and didn't know what the decision was.If it was not approved would it go to the underwriter?

Answer 1

They are basically the insurers of insurance companies. Insurance companies protect individuals and organizations from financial loss by assuming billions of dollars in risk each year. Underwriters are needed to identify and calculate the risk of loss from policyholders, establish appropriate premium rates, and write policies that cover this risk. An insurance company may lose business to competitors if the underwriter appraises risks too conservatively, or it may have to pay excessive claims if the underwriting actions are too liberal.

With the aid of computers, underwriters analyse information in insurance applications to determine whether a risk is acceptable and will not result in a loss. Applications often are supplemented with reports from loss-control consultants, medical reports, reports from data vendors, and actuarial studies. Underwriters then must decide whether to issue the policy and, if so, the appropriate premium to charge. In making this determination, underwriters serve as the main link between the insurance carrier and the insurance agent.