lev-os Managing Underwriting Analysis
Structures underwriting evaluation with risk assessment, pricing analysis, and terms documentation for insurance, reinsurance, and actuarial decision-making.
When To Use
- Evaluating new submissions or renewal risks for pricing adequacy and terms
- Coordinating underwriting workflows across multiple analysts, actuaries, or reinsurance intermediaries
- Documenting underwriting rationale for audit trails, regulatory inquiries, or management reporting
- Benchmarking loss ratios, rate adequacy, or portfolio-level risk concentrations
- Preparing underwriting authority referrals or escalations beyond individual limits
Inputs To Gather
- Submission data: application/proposal forms, supplemental questionnaires, exposure schedules
- Loss history: at least 5 years of valued loss runs with development factors; large-loss detail with narratives
- Pricing inputs: expiring premium, rate-change history, filed/manual rates [VERIFY state-specific rate filing requirements], experience modification factors
- Risk engineering: inspection reports, loss-control recommendations, hazard grades
- Reinsurance structure: treaty and facultative placements, retention levels, ceded premium allocations
- Market context: competitor indications, broker-quoted benchmarks, rate-monitoring indices
- Financial data: audited financials of the insured (for large commercial/specialty lines), TIV schedules, SOVs
Workflow
Triage the submission
- Confirm the risk falls within underwriting appetite and authority limits
- Identify line of business, coverage form, and territory [VERIFY admitted vs. surplus lines requirements]
- Flag any exclusions, manuscript endorsements, or non-standard terms requested
Assemble the risk profile
- Compile exposure measures: payroll, revenue, unit count, TIV, vehicle schedules, or other relevant bases
- Map loss history to current exposure base and apply loss-development factors (link-ratio or Bornhuetter-Ferguson as appropriate)
- Calculate loss ratios (ultimate, paid, incurred) at both per-occurrence and aggregate levels
- Identify large-loss loads vs. attritional layer frequency trends
Perform pricing analysis
- Run experience rating: compare indicated loss cost to manual/filed rate
- Apply schedule credits/debits with documented justification for each factor
- Incorporate increased-limit factors, deductible credits, and retrospective rating adjustments where applicable
- Model catastrophe/aggregation exposure using vendor models or internal curves [VERIFY cat-model version and return-period thresholds per company guidelines]
- Compare proposed premium to minimum rate-on-line, target combined ratio, and risk-adjusted return metrics
Evaluate terms and conditions
- Review policy form (occurrence vs. claims-made, defense inside/outside limits, hammer clauses)
- Assess sub-limits, SIRs/deductibles, aggregates, and erosion scenarios
- Check collateral/security requirements for loss-sensitive programs
- Confirm reinsurance applicability: does the risk attach to existing treaties or require facultative placement?
Document the underwriting decision
- Prepare a structured underwriting memo summarizing risk characteristics, pricing rationale, and terms
- State the recommendation: bind, decline, or counter-offer with specified conditions
- Note any referral items requiring senior authority sign-off
- Record binding subjectivities and conditions precedent to coverage
Coordinate follow-through
- Track outstanding subjectivities with deadlines
- Communicate binding authority decisions to brokers/agents with quote-validity periods
- Update portfolio tracking systems with new exposure, premium, and modeled PMLs
- Flag upcoming renewal dates and diary triggers for re-underwriting
Output
The deliverable is an Underwriting Analysis Report containing:
- Executive summary: risk description, line of business, recommended action, and key metrics (proposed premium, target loss ratio, rate change %)
- Risk profile section: exposure detail, loss history tables with development, large-loss narrative
- Pricing section: experience-rated indication, schedule rating worksheet, cat-load summary, final proposed premium vs. technical price
- Terms section: coverage form, limits/deductibles, notable endorsements, reinsurance placement notes
- Decision and rationale: clear bind/decline/counter recommendation with supporting justification
- Open items tracker: outstanding subjectivities, information requests, and deadlines
Quality Checks
- Loss ratios and premium calculations are internally consistent and tie to source data
- All schedule rating credits/debits are individually justified — no unexplained blanket adjustments
- Cat exposure is quantified and within portfolio aggregation tolerances
- Reinsurance cession is correctly allocated and treaty terms are respected
- Authority limits are verified — escalation documented if referral is required [VERIFY per company underwriting authority matrix]
- Filing and compliance requirements confirmed for the applicable jurisdiction [VERIFY surplus lines stamping, rate/form filing status]
- No stale data: loss valuations, financial statements, and inspection reports are current within acceptable windows
- Assumptions (trend factors, development selections, benchmark selections) are explicitly stated, not embedded silently