Page 41 - Insurance Times December 2020

EFFECTUAL

INSURANCE

UNDERWRITING IN

THIS DECISIVE

JUNCTURE OF NEW

NORMAL SITUATION

Introduction: manufacturing and service activities are being disrupted. In

The coronavirus pandemic is savaging the global economy, recent days, the insurance industry had cut back on
resulting in widespread business closures, near-universal coverage available for pandemic diseases, introducing new
event cancellations, insurance executives are habitually or broadened exclusions and applying strict sub-limits to
working from home & busy in attending/responding the mails contain insurer exposure. Nonetheless, pockets of coverage
of bosses, insured, intermediaries, like brokers, Surveyors, continue to exist. So it is important now to make revised
etc., Event Managers are working on the cancellation of assessments of Insured business's vulnerabilities and Indian
events, cancellation of orders and slowing of deliveries are Insurers need to resort to underwriting prudence and also
obvious, and a general disruption of supply chains is evident. to seriously depend on their underwriters' acumen.

News reports indicate that the impacts are already being Market discipline to be imbibed in
felt in virtually all industries. Travel, transportation, underwriting:
hospitality, education, health care, entertainment, and Underwriting is a process of selecting policyholders by
event planning are especially hard-hit, but most recognizing hazards, analyzing risks, determining pricing,

deciding terms and conditions. It is a process of gathering
information about a risk offered for insurance and deciding
About the author coverage with proper premium and terms. Functions like

marketing, ratemaking, accounts and claims may be
Anabil Bhattacharya subcontracted to outside agencies, but not underwriting
B.M.E. (Honours), F.I.I.I., because of its fundamental importance to the success of the
Risk Inspecting Engineer & Insurance insurer. To develop and maintain a profitable book of
Counselor, Retired Chief Manager, H.O., business is the main purpose of underwriting. This comes
National Insurance Co. Ltd., Kolkata.
from proper selection of risks. To achieve this purpose, the
The Insurance Times, December 2020