Many life insurance companies are turning to technology to speed and remove cost from the underwriting process. Automated underwriting systems have been developed to reduce the manpower, time and/or data necessary to underwrite a life insurance application, while maintaining the quality of underwriting decisions. Although these systems have been in existence for some time, not much is known abo...

With increased competition from non-traditional players, reduced margins, and declining customer loyalty, underwriting excellence and pricing discipline have become critical to a competitive advantage. Against this backdrop, insurance players need to embrace a smarter approach to underwriting by adopting continuous underwriting. Continuous underwriting involves collecting meaningful data from d...

Airlines are the business of transporting passengers in which the safety and risk have always been important. We use the fuzzy CAPM and fuzzy ICAPM models to investigate the underwriting systematic risk and profit margin of aviation transportation, in which the parameters of membership function are the asymmetric triangular fuzzy number. We calculate the underwriting systematic risk and profit ...

Structured settlement underwriting is the underwriting of medically impaired lives for the purchase of an annuity to fund the settlement. Other than risk assessment, structured settlement (SS) underwriting has little in common with traditional life insurance underwriting. Most noteworthy of these differences is the relative lack of actuarial data on which to base decisions about mortality and t...

We discuss the challenges in developing decision support tools for commercial underwriting and discuss how several different approaches to the underwriting problem have been addressed. We then describe an expert system-based approach to credit underwriting that has been in commercial usage for over ten years in a variety of financial institutions. The expert system approach addresses many featu...

The underwriting cycle is a thing of the past for most health insurance companies. There were six primary factors that caused the six-year pattern of the underwriting cycle for 1965-1991. These factors were claims payment cycle time, renewal dates and process, growth versus profit objectives, role of the actuary, rate regulation, and reimbursement methods. Most companies have made major changes...

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...

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 ...

ic with frequent volume fluctuations, shifting investor requirements, and evolving regulatory and compliance standards, not to mention ever-changing customer demands. In the mid-1990s, Fannie Mae introduced Desktop Underwriter (DU), an automated underwriting system (AUS) that significantly improved the underwriting process (McDonald et al. 1997). DU and other automated underwriting systems have...

Any approach that adds speed and efficiency to the underwriting process provides a competitive edge in today's fast changing financial services industry. The acquisition of data for medical underwriting has always been a challenge; with the traditional attending physician statement process adding time, real costs, and opportunity costs to manufacturing life products. Is there any potential for ...