Page 4 - Policy Wording - Hollard Business Binder (2020-08-26)

General Underwriting Principles
GENERAL UNDERWRITING PRINCIPLES
1. THE PURPOSE OF THE GUIDELINE
1.1 The underwriting guideline is intended to assist you in making sound underwriting decisions as required by Hollard.
1.2 Prior to quoting or renewing a policy, you should familiarise yourself with the Underwriting Guidelines, your Underwriting Mandate, acceptance limits and our Treaty Exclusions as per Annexure A.
1.3 You are expected to follow the guidelines as closely as possible, however, we understand that competitive market factors also need to be taken into account. Should any major deviation be required, refer to your Hollard branch for approval.
1.4 Cutting rates is not always sensible, the loss history and various other underwriting factors should dictate the rating, deductible and warranties/endorsements that should be applied. If it comes to your attention that there is adverse risk exposure, you are required to mitigate the risk by either increasing the rate, applying higher deductibles or by endorsing the policy schedule with additional conditions or warranties.
2. QUOTE AND ACCEPTING A RISK
2.1 Minimum information required when preparing a quote:
2.1.1 2.1.2 2.1.3 2.1.4 2.1 5 2.1.6 2.1.7
2.1.8 2.1.9 2.1.10
prior to quoting, ensure that there is insurable interest;
the previous/current insurer;
three to five years loss history (whether insured or not);
detailed business description (including all activities of the business); needs analysis and/or a current policy schedule;
adhere to the survey requirements documented in this guideline;
details of the area, topography, rivers, informal settlement, taxi ranks and building construction. This information can be obtained from the GRiP system;
when applying a rate, start with the technical rate and load or discount according to the risk; split in sums insured per location, including the occupation per premises;
annual turnover.
2.2 Rules of engagement:
2.2.1 The most important stage of accepting a risk is at the New Business stage. It becomes difficult to implement underwriting changes once a risk has been accepted. Ensure that the correct occupation code is selected and that you have all the underwriting information prior to quoting.
2.2.2 Make certain that the risk conforms with the laws of the country and that it is not a moral risk. For example, a moral risk could be when a client gets involved in a risky event, knowing that they have insurance and thereby passing all the risk onto the insurer.
2.2.3 Ensure that the risk falls within treaty limitations, restrictions and your mandate. You should not over commit the Company. Work within your own mandates and refer to your Hollard branch if required.
2.2.4 Justify the rate applicable. If the base rate is incorrect all other extensions, etc. will be rated incorrectly resulting in insufficient premium.
2.2.5 Survey the risk. This will assist in underwriting the risk correctly, charging the appropriate rate and assist in loss prevention once the client complies with survey requirements. Refer to the section on surveys for further guidance.
2.2.6 If you are approached to quote on existing Hollard business, the client needs to provide you with a signed letter of appointment to transfer the policy. All existing terms, rates and conditions must remain unchanged.
2.2.7 Obtain written confirmation from your Hollard branch on referral cases prior to quoting on or accepting the risk.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 3