Post on 16-Dec-2015
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Underwriting Not By the BookMetropolitan Underwriting DiscussionJanuary 2012
Gene Lunman - MetlifeWilliam E. Moore – Swiss Re America Holding Corporation
| Metropolitan Underwriting Discussion | January 2011 2
Clerical E & O
Underwriting error
– Material – Not material
– Large amount – small amount
Pattern of behavior
Expected number of exceptions
Treaty Language
| Metropolitan Underwriting Discussion | January 2011 3
Scope– Frequency– Competitors audits
Bias – Non bias
Standards – clients vs. reinsurers
Random sampling vs. targeted sampling– Old age– Substandard– Large face amount
Number and type of exceptions
– Acceptable vs. not acceptable
Resolution– Reprice– Ignore– Give back
Underwriting Audits
| Metropolitan Underwriting Discussion | January 2011 4
Exceptions to standard and substandard– Meet the competition
– Make up for product without competitive pricing
– Normal course of business
– Judgment– Guidelines– Manual– Bilateral or unilateral
Case Underwriting
| Metropolitan Underwriting Discussion | January 2011 5
Tradeoffs vs. exceptions– Judgment?
Preferred Underwriting
| Metropolitan Underwriting Discussion | January 2011 6
Who pays? How are they used?
Table Shave Programs
| Metropolitan Underwriting Discussion | January 2011 7
Reinsurer's rights
Client's rights
Factors that effect placement – Jumbo – Auto bind
Prior issues
– Audits
– Patterns of behavior
– Reasonable and customary
Fac cases and disclosure
The Claim