Assessment process and underwriting methods
Underwriting and assessing a risk for the correct premium and terms is not a perfect science. However, in a market that demands more justification and technical assessment for underwriters to make the decisions on risks, it is good for brokers and cedants alike to have more insight into some of the processes that underwriters and facultative reinsurance underwriters use to make these decisions.
André Pienaar, Director and Principal Underwriter at F&I Re (Pty) Limited took us through a basic step-by-step assessment process, on a fictitious client, outlining one of the underwriting methods that he uses every day.
