NextGen Underwriting Quiz

What is the primary objective of underwriting in insurance?

• Maximising policy sales

• Assessing and selecting risks appropriately

• Minimising customer queries

• Marketing insurance products

In the underwriting process, what is a 'moral hazard'?

• The risk of natural disasters

• The likelihood of claims due to economic downturn

• The risk arising from the behaviour of the insured

• A legal requirement for risk disclosure

Underwriters only assess new policies and have no role in policy renewals

• True

• False

Reinsurance can help insurers manage high-risk or large-value underwriting exposures

• True

• False

Underwriting decisions must always be objective, consistent, and evidence-based

• True

• False

An underwriter may decline a risk, accept it as is, or _______ the terms to make it acceptable.

What is the main purpose of the underwriting process?

• To sell as many insurance policies as possible

• To improve marketing campaigns

• To decide what risks to accept and under what terms

• To increase premiums for all customers

Which of the following is NOT typically included in the information collected during underwriting?

• Customer’s social media accounts

• Value of the items

• Condition of the items

• Location of the items

What is the first step in the underwriting process?

• Customer engagement

• Collect information

• Make a decision

• Analyse the information

Underwriters only need to talk to the customer to get all necessary information

• True

• False