Evolution of Medical Insurance Underwriting
Those of us in the "business" know what is involved in insurance underwriting. Those not in the "business" either assume it has a role in the insurance company's overall operation or is the primary administrative source of the actual policy they hold. Both are correct, but neither totally explains the importance. We have to go back a long way to fully understand the origin and evolution of underwriting. Not a subject for this site!
However, it does remind us that an underwriter is still the person that decides whether insurance is provided and, if so, under what terms. They identify and calculate the risk of loss from policyholders, establish who receives a policy, determine the appropriate premium, and write policies that cover the risk. Some things never change!
But . . . some things do. Ever seen two medical insurance carriers that underwrite exactly the same way? Just never happens. Why? Besides personal bias, the liberal/conservative (underwriter) argument, there are differences in policy benefits, market challenges, lead generation, compensation, claims histories and a marketing need to generate numbers to name just a few.
Enter Long Term Care Insurance (LTC)! In her year 1993 writing of "Underwriting Individual Long Term Care Insurance" (still a practical guide for training the new LTC Underwriter) our colleague Margaret Czellecz of CUNA Mutual Group reminds us that although basic underwriting concepts have not changed, those of our Long Term Care product have to include "the applicant's ability and probability of remaining self-sufficient and living independently."
There are others to be sure! The point being that a highly skilled and knowledgeable Underwriting Assist, Inc. can make a difference when it comes to measuring the concepts applied to quality decisions, standards, marketing, systems and constructive consultation. We are the gatekeeper's gatekeeper! Let us work for you.
