Methods of Underwriting

Judgement Method

• Under this methods, subjective judgement is used.
• Example: Deciding whether to give insurance to someone who has acute diabetes and on what terms.
• In such situations, department may get expert opinion of medical doctor or medical referee.

Numerical Method

• Under this method underwriting assign positive rating points for all negative or adverse factors.
• The total number of points so assigned will decide how much extra mortality rating (EMR) it has been given. If EMR is high, insurance may even be declined.