Summary |
The underwriters may implement a proactive approach to portfolio management not only in terms of ability to sell-off to the reinsurers called placement capabilities but also in terms of asset purchase like swapping diversifying assets and hedging strategies like health related loss potentials may be hedged against investment in pharma companies or hospitals. Generating product pricing under a capital based strategy has three aspects, viz. transaction specific, competitors and portfolio effects. The reporting of new business and commitments should be directly linked to subsequent reporting of exposure levels so that new exposure is reported in addition to over all exposure.
The book does not deal with these sophistications of underwriting. It has a simple purpose to make the student and practicing executives aware of the basics of underwriting in property and causality areas within commonly divided topics.
|
