Doctor Insurance Group
Everything You Wanted to Know About Insurance Underwriting
March 27, 2019

Everything You Wanted to Know About Insurance Underwriting

The purpose of disability insurance is to add a blanket of security over a physician’s career, practice, and life. The science and statistics behind how value is assessed and the amount of coverage available is determined by underwriters. Underwriters work solely for insurance companies, not for the claimants. Their position is clear: insure without losing money. When you work with Doctor Insurance Group for your physician’s disability insurance needs, we will guide you through the underwriting process to make sure your needs are met.

When you purchase any type of insurance, companies, banks, investment houses, and other specialist companies guarantee that any damage, illness, financial loss, or injury will be covered. The methodology utilized is based on statistical analyses of other insured individuals of similar age, occupation, health, and other factors. By comparing the risks of these factors, underwriters are able to determine not only base payments and deductibles, but whether a potential client can be insured. Because underwriters work solely for companies, their decisions measure the companies’ exposure to risk with each consumer, and the factors for each consumer determine the amount paid and insured.

For instance, underwriters analyzed the amount of claims submitted for male and female consumers within the same age bracket and determined that females are more likely to file a claim than males. Because females use their insurance more than males, underwriters classify females as a higher risk and charge women higher premiums than men. While this may seem biased to the consumer, it is statistically predictable for underwriters.

Many insurance companies have underwriting departments to serve their needs, while others rely on trusted underwriters specializing in their insurance coverage. Group insurance is farmed out to more than a dozen underwriters, while individual insurance companies generally rely on one underwriter, who is often a part of their company. Every insurance company relies on its specific underwriting guidelines to evaluate the risks to insure each consumer. These factors are objective rather than subjective, based on facts and statistics. A clear correlation between the amount of risk and coverage granted exists, giving the insurance carrier practical numbers to assess its clients. Underwriters determine coverage based not only on current trends but on past experience. Their expertise also looks to the future to assess the viability of a long-term investment in each consumer’s likelihood of insurance usage.

While some underwriters may decline a client based on a risk analysis, others may accept the client with the understanding that the client will pay higher premiums, have a larger deductible, or restrict claims in some manner to maintain a positive balance for the insurance company. 

The term underwriter truly means “to write under”; an individual with more known risks would physically write his or her name under the amount of risk he or she would accept based on the insurance company’s premium. Today’s underwriting follows this same premise, with the research conducted by underwriters determining the safety of insuring individuals. By comparing individuals within specific parameters, underwriters are able to spread potential risk among its policyholders. This stabilizes the insurance market and gives a fair risk assessment to consumers. Their role significantly lowers the overall risk insurance companies may face with high-priced claims. In this sense, an underwriter’s role is truly consumer-based.

Doctor Insurance Group can help you find the best disability insurance for doctors. Not only will we walk you through the underwriting process, but we will also compare carriers and provide a written analysis — all at no additional cost.

To speak to one of our True Own Speciality Disability insurance coverage specialists, give us a call at 800-997-0148 or

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