Underwriting is the most important process of a business where a slight miscue can lead to blunders. An insurance organization’s success depends upon the correct assessment of the possible risks associated with each application. Hence, the role of an underwriter becomes crucial. Predictive Analytics takes into account the statistical data and past records of the proposed insured to analyze the ...

An end-to-end system was created at Genworth Financial to automate the underwriting of Long Term Care (LTC) and Life Insurance applications. Relying heavily on Artificial Intelligence techniques, the system has been in production since December 2002 and in 2004 completely automated the underwriting of 19% of the LTC applications. A fuzzy logic rules engine encodes the underwriter guidelines and...

This paper presents a computational economics model of the property-liability insurance underwriting cycle. This computer experiment is built on downward-sloping demand, a simplistic version of the capacity constraint model of insurance supply, and a simple pricing rule. The pricing rule has each experimental insurer determine its price from the expected losses per-policy (a constant), the prev...

A growing literature analyzes determinants of insurance prices using time series data on insurer underwriting margins. If the variables analyzed are stationary, conventional regression models may be appropriately used to test hypotheses. Based on pre-tests for a unit root, several studies have instead used cointegration analysis to analyze the long run relationship between purportedly non-stati...

The adjusted average per capita cost (AAPCC) formula is used to determine payment to health maintenance organizations (HMOs) by Medicare. The four original underwriting factors (i.e., age, sex, institutional status, and welfare status) for the AAPCC were calibrated from the Current Medicare Surveys for 1974-76. Those factors have been updated by various actuarial adjustments. Revised calculatio...

Using the dataset of the Impairment Study Capture System, we analyzed mortality experience and underwriting on policies issued at ages 70 and up. Policy issue dates were from 1990-1998 and observation ran from 5-12 years. There were 1430 deaths in a total exposure of over 102,000 policy-years. Nearly two thirds of the total exposure was for females. Despite the use of expected mortality differe...

In this paper, I examine the influence of the investment bank’s reputation on the price of underwriting services of Chinese firm. Based on a sample of offers from 2004-2015, the results show that prestigious investment banks charge higher fees. Furthermore, in comparison to big firms, prestigious investment banks charge more underwriting fees for small firms. In comparison to state-owned firms,...