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Insurance Underwriting Process (IF3)

IF3 (15 CII credits – Certificate level)

Insurance Underwriting Process provides you with knowledge and understanding of the role of underwriting including identification, assessment and acceptance of risk, rating and relevant financial factors.

In the early days of marine insurance, the details of a ship or cargo to be insured would be described on a slip. This slip would be taken to Lloyd's of London. The person to carry the risk would read the details, then sign the slip under the details of the risk. In this way, the person carrying the risk became known as the underwriter.

The underwriting process is far more complicated today, but the term still applies.

Insurance is based on the concept of the common pool. Contributions, in the form of premiums, from many people go into this pool out of which the losses of the few are met. In essence, the task of the underwriter is to manage this pool as effectively and profitably as possible.

The role of the underwriter is to assess the risk, decide whether or not to accept the risk, or how much to accept; determine the terms, conditions and scope of cover to be offered; and calculate a suitable premium.

We look at underwriting procedures as well as examining the specific underwriting considerations applicable to the main classes of general insurance business.

We consider the structure and content of policy wordings, premium payment, renewal and cancellation procedures as well as the main aspects of rating. The developments in related products and services will be examined and the principles involved in managing the underwriting account.

This unit covers the role of underwriting including identification, assessment and acceptance of risk, rating and relevant financial factors.

Building a successful career in insurance

This course is for you if you work in insurance or aspire for a rewarding career in insurance.

Please note: If you hold LM3 and subsequently gain IF3 you will gain no additional credits.

Summary of learning outcomes:

  1. Understand the material circumstances relating to the insurance underwriting process.
  2. Understand underwriting procedures relating to the insurance underwriting process.
  3. Understand insurance policies in relation to the insurance underwriting process.
  4. Understand renewals and cancellation in relation to the insurance underwriting process.
  5. Understand personal insurances in relation to the insurance underwriting process.
  6. Understand commercial insurances in relation to the insurance underwriting process.
  7. Understand the main ‘support’ type insurance services available.
  8. Understand underwriting considerations in relation to the insurance underwriting process.
  9. Understand the principles and practices of pricing.
  10. Understand pricing factors within the context of the insurance underwriting process.
  11. Understand managing exposure within the context of the insurance underwriting process.

More information:

Download 2020 syllabus (PDF)

Download 2020 exam guide (PDF)

Assessment:

  • 2-hour exam
  • 75 multiple choice questions
  • 70% nominal pass mark

Recommended study hours: 60

Prepare for success with Enrolment plus:

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