PERSPECTIVE OF AN UNDERWRITER What a Commercial Underwriter looks for?

(SESSION CODE TLT019)

Speaker: Jugal Kishore Madaan

Chief Underwriting Officer – Commercial Lines Abu Dhabi National Insurance Company

Learning Objectives

At the end of this session, you will: •  Have a perspective of Underwriting Philosophy

•  Appreciate how Commercial Line Risks are assessed

•  Gain insight of the role of Underwriter in the Business of Risks

 

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Vision

Mission

Underwriting  Philosophy

Underwriters

Classical Model

Commercial Underwriting •  Energy •  Property and Business Interruption •  Engineering/Construction/Builder’s Risks •  Aviation •  Marine Hull •  Marine Cargo •  Charterer’s Liability •  Liability •  Fine Arts

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Common Factors •  Inherent Risks •  Accumulations •  Nat Cat Exposures •  Insured’s Financial Stability •  Moral Hazard •  Loss Experience •  Risk Management •  Political Risks •  Size of Portfolio •  Diversification/Growth Objectives

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Energy •  Nat Cat exposures •  Age of facilities •  Maintenance •  Risk engineering •  Environmental issues •  Deep/Ultra-deep Drilling •  Complex rigs issues •  Blow out exposures •  High pressure/high temperature •  Serious aggregation issues •  Loss history

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Property •  COPE factors •  Accumulations •  Nat Cat exposures •  Seismic resistance •  Flood zones •  EML/MFL assessments •  Risk engineering •  Loss history

 

•  Business Interruption –  Limits –  Maximum period of restoration –  Interdependencies –  Production bottlenecks –  Business Continuity Plans –  Contingent BI

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Engineering/Construction/ Builder’s Risks •  Location •  COPE factors •  State of the yards/Over crowding •  Survey of the Yard. •  Nat Cat exposure •  Launching facility/process of vessels •  Distance/ trials/ deliveries •  Plant and Machinery •  Design Risks •  ALOP/DSU •  Contractors’/Sub Contractors’ Experience •  State of Warranty

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Aviation •  Composition of fleet/age •  Operating sectors •  Territories and prevailing geo-socio-political situation •  Airports terrain/status •  Size of the run ways •  Maintenance Providers •  Risk management capabilities

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Marine Hull •  Vessel(s) Specification •  Valuation •  Class Survey reports •  Owners / Management experience and crews •  Fleet expansion plans •  Moral/Morale hazard •  Scope of coverage •  Ports/waterways •  Trade areas •  Loss experience

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Marine Cargo •  Nature of cargo •  Packaging details •  Type of Conveyance •  Voyage details •  Volume of business •  Maximum limit per shipment •  Loss experience

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Charterer’s Liability •  Vessel specifications •  Cargo type/ values •  Expected number of voyages •  Experience of charterer/captain/crew •  Intended ports of call •  Annual turnover

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Liability •  Product Liability

–  Inherent hazard –  Extent of quality control –  Efficacy of complaint redressal –  System and record keeping –  Mergers & Acquisitions: Continuity of

Enterprise/ Product Line is crucial

     

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Liability •  Hospital Professional Liability

–  Ownership & control –  Availability of services/facilities –  Loss history –  Legal system –  Accreditation/experience of resident

and visiting practitioners

 

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Fine Arts •  Individual/Museum •  Owned or borrowed pieces •  Transits •  Conservation services •  Restoration/maintenance •  Protection •  Coverage

–  Wall to Wall –  Schedule –  Blanket basis

 

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Emerging Risks •  Developing risks of Tomorrow •  Presenting obvious challenges •  New business opportunities

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Solar Impulse 2

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Batteries

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Cyberattack

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Drones

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Supertall

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Critical Factors •  Prudent Risk Selection •  Optimal Pricing •  Risk Management Partnership •  Suitable Reinsurance Program •  Effective Claims Management. •  Careful reserving

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Underwriter: The Nerve Center

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Underwriting Philosophy

Underwri3ng  Philosophy  

Write  Business  

Por@olio  Results  

Review  

Modify  Approach  

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Vision & Mission

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Underwriters

Underwriting  Philosophy

Mission

Vision

Value Driven Model

 

 

                                                                                 

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