The future of underwriting.

Pricing implications of trends in population mortality and underwriting effectiveness.

Pricing actuaries try to anticipate insured lives mortality rates for decades into the future by considering historic relationships between population and insured lives mortality and trends in population mortality. The degree to which underwriting might decrease insured lives mortality relative to population mortality is of particular importance. A comparison of trends in population and insured...

Tying Knots: Lending to Win Equity Underwriting Business

This article examines the practice of " tying, " which occurs when an underwriter lends to an issuer around the time of a public securities offering in order to secure underwriting business. We examine the following questions: (i) Does the issuing firm benefit from tying practices? (ii) If so, what is the source of these benefits? Why do underwriters tie lending to underwriting? (iii) How has t...

Predictive medical information and underwriting.

Medical underwriting involves the application of actuarial science by analyzing medical information to predict the future risk of a claim. The objective is that individuals with like risk are treated in a like manner so that the premium paid is proportional to the risk of future claim.

Investment Income, Underwriting Profit & Contingencies: Future Developments

The Influence of Bureau Scores, Customized Scores, and Judgmental Review on the Bank Underwriting Decision-making Process

In recent years, commercial banks have moved toward automated forms of underwriting and away from the judgmental review of loan applications. This paper employs unique bank loan-level data from a scoring lender to assess the impact of different underwriting approaches on applicant outcomes. To determine whether automated underwriting exhibits a potential “disparate impact” across income strata ...