Adopting Modern Techniques - Effective Underwriting

Underwriting standards have been improving in the insurance arena world over; and towards

achieving this, underwriters are being supported by several modern tools. It, however, presupposes that underwriters ensure to make use of these advancements on an on-going basis rather than sticking entirely to ancient styles. Particularly in the domain of life and health insurance, the research taking place in the fields of medical technology and disease intervention should be brought into reference in order that the decisions taken are in approval with the trends of generally improving mortality and morbidity in the society. One particular area that comes to one's mind is the revolution taking place in the domain of diagnostic medicine. Some of these examinations would not have even been thought to be possible, not very long ago. Also, most of these facilities are available within the country and are thus within easy reach of most. In case of being caught in a quandary,

underwriters would do well to avail the services of these modern diagnostics to arrive at a decision conclusively. While it would be ambitious to suggest that every proposal for life or health insurance should be supported by such investigative methods, no effort should be spared to maintain the equitability of the pools. It is also gratifying to note that insurance medicine is being taken seriously by the medical profession and to see the visible signs of medical officers associated with insurance companies being organized together to discuss the developing trends. It will give them the benefit of sharing experiences as also improving the underwriting techniques. Similarly, in the other areas of insurance business also, a continuous revamping of the practices based on more recent experiences should be the objective of the top management. With rapid progress being made in the fields of data acquisition and analysis, their application in the day to day practices will bring the much needed freshness into the process of underwriting the risks. As has been emphasized time and again, the sharing of information is bound to lead to a great advantage for the underwriters and has to be adopted in right earnest. 'Underwriting in Insurance' is the focus of this issue of the Journal. The opening article in the focus is by Mr. G.V. Rao who talks about the need for the underwriters to look at the job as a challenging one rather than as a mundane activity. In the next article, Dr. G. Gopalakrishna details the process of life insurance underwriting; and throws light on several aspects of risk assessment that an underwriter should imbibe over a period of time. In a truly different and refreshing style, Mr. Sibesh Sen gives a vivid account of the travails of an underwriter even after death in his 'elegy' that follows next. In the Follow Through section, we have an article by Mr. D.V.S. Ramesh in which he expresses hope that combi products will be the order of the day in the not-too-distant future. The Eyjafjallajokull volcano has taught us some bitter lessons – especially in the domain of international travel. Mr. K.L. Naik throws light on the associated aspects of insurance and the way forward. Being risk-takers essentially, insurers themselves face huge risks from time to time. Mr. Keith Prabhu talks about Business Continuity Management as a strong tool for the insurers to manage their risks efficiently. In the end, we have the second part of the Research Paper by Mr. N. Srinivasa Rao in which he comments about the strengths and weaknesses of the various government sponsored health insurance schemes. A lot has been discussed and written about efficient claims management in order that overall claims ratios present a healthy picture. 'Claims Management in Insurance' will be the focus of the next issue of the Journal.

From :- IRDA Journal May 10

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