One of the most underrated areas of any insurance company is the underwriting department. Every insurance company has one…whether you have life, auto, property/casualty, commercial, there is an underwriting department that thoroughly researches each category.

Almost everyone who buys insurance does not know exactly what the underwriting department does. In a “nutshell,” the underwriting department consists of people that either make or tap into a system of statistics that show the likelyhood or “chances” of risk to each category of insurance coverage. Simply put, they are sole source for making your premiums that you pay your agent for coverage.

The most popular comment made by a consumer buying insurance is “why is this not covered?” It is the underwriters opinion, along with real statistics, that a certain type of risk is way to high to cover to keep the insurance company in business. Insurance companies are charged by each state in the USA to keep a large amount of cash “reserves” to cover most losses it will normally encounter in a given time period.

An insurance company walks a fine line of keeping the necessary cash on hand to pay out claims and to have enough to stay in business to further serve their customer base.

In conclusion, the underwriters have a very heavy responsibility to satisfy the customer, the insurance company they work for and the state insurance agencies that govern their businesses.

If you need a quality insurance policy for you, your family and business, contact agent, Doug Seide now at 480-443-1952.