Page 74 - Ebook health insurance IC27

The Insurance Times

 For insured: underwriting is important for the insured since the coverage
required for insurance and premium can be determined only by way of
underwriting. Underwriting can also suggest refers to be taken to reduce the
risk and hazards.

 Agents and brokers: brokers are often involved in offering tailor-made solutions to
the customers. By underwriting such possibility can be looked into and solution may
be offered to the customer.

 Society: underwriting helps to improve the standards of safety and care and
achievement of economic and social goals of a country.

Underwriting process

Underwriting involves a proper exercise by the underwriter to evaluate the insurability of
the risk and if the risk can be assumed, the price, terms and conditions at which the risk
may be insured.

It is the responsibility of insurers to meet all contractual obligations of the existing policies.
Insurer cannot resort to profiteering motive. In the interest of equity and sustainability the
underwriting process needs to be carried out meticulously

Insurance regulatorsplay an important rolein underwriting process by listing out guidelines
is so that insurers take suitable measures for proper underwriting.

Morbidity (from Latin morbidus, meaning "sick, unhealthy") is a diseased state,
disability, or poor health due to any cause. The term may be used to refer to the
existence of any form of disease, or to the degree that the health condition affects
the patient.

7 8 Guide for Health Insurance