Some insights on underwriting insurance risks
Medical malpractice insurance underwriting is the process of evaluating professional risk and determining the risks involved in business practices. The underwriter sets a price to establish an insurance premium that will be charged to professionals in order to offer them appropriate cover and carry their risk.
To ascertain what risks are acceptable, the underwriting process involves reviewing specific information to determine the actual risk, collating additional information where required (including data available on different specialities to review trends) and claims statistics. The information provided enables the underwriter to predict the risks associated with the professional and to charge the premiums accordingly.
The underwriter pro-actively looks at solutions that may assist in reducing or mitigating risks in the future, such as appropriate informed consent forms, abiding with confidentiality and complying with regulatory bodies.
Usually, underwriters become involved in cases where an intervention or additional assessment information is required. Insurance underwriters normally review policies and the relevant risk information when a situation seems outside the norm, or when there is a material change in the risk being underwritten.
On renewal of a medmal policy, the underwriter will determine whether the current conditions and premiums are still applicable, or whether new terms and conditions need to be offered to the client, including an increase in premium, excesses, or sub-limits as part of the annual renewal terms and conditions.
Medical malpractice insurance underwriting is the process of evaluating professional risk and determining the risks involved in business practices.