Life underwriting is the process by which insurers assess the risk of insuring an individual. This involves evaluating various factors such as age, health, lifestyle, occupation, and hobbies. The goal is to determine the likelihood of a claim being made and to set appropriate premiums. Underwriting affects clients by influencing the cost and availability of coverage. Potential pitfalls include higher premiums or coverage exclusions for individuals with high-risk activities or health issues.
High-net-worth (HNW) clients often have unique needs and engage in activities that can complicate the underwriting process. For example, they might participate in hazardous sports like heli-skiing or own private aircraft. These activities can lead to higher premiums, contract exclusions or low coverage limits.
Unity’s advisor can play a crucial role in mitigating adverse underwriting decisions for clients engaged in hazardous sports or lifestyle behaviors like private aviation. Here’s how they can help:
1. Expert Knowledge and Advocacy
We understand the intricacies of underwriting criteria and can effectively advocate for their client. We know which facts to emphasize to present the client’s case in the best possible light, such as the client’s experience, safety measures taken, and overall health.
2. Access to Specialized Underwriters
We have relationships with specialized underwriters who are more familiar with high-risk activities. Avoiding a case being underwritten by an inexperienced underwriter working from a checklist could be the difference between a file being rated or placed standard with preferred pricing. Our network of experienced underwriters may offer more favorable terms due to their understanding of the specific risks involved and the client’s risk management practices.
3. Customized Policy Structuring
In some cases, we can help structure policies that accommodate high-risk activities without excessively high premiums or exclusions. This might involve negotiating specific riders or exclusions that are acceptable to the client, ensuring they still receive comprehensive coverage.
4. Risk Mitigation Strategies
We can work with underwriters to propose to clients’ risk mitigation strategies that make the client more attractive to insurers. For example, access to training, certifications, or safety protocols for activities like private aviation or hazardous sports, which can reduce perceived risk in the eyes of the insurer.
5. Comprehensive Financial Storytelling
By integrating life insurance into a broader financial plan, we demonstrate our clients’ overall financial stability and risk management, which can positively influence underwriting decisions.
6. Leveraging Multiple Insurers
We have experience working with head underwriters at multiple major insurers to find the best terms for clients. This allows us to compare offers and negotiate better conditions, ensuring our client gets the most favorable coverage available.
How does this benefit our clients?
Better Coverage: Clients receive more comprehensive and tailored coverage that aligns with their lifestyle and needs.
Cost Savings: By negotiating better terms and premiums, we can save clients significant amounts of money.
Peace of Mind: Clients can engage in their usual sports or activities knowing they are adequately protected.
Our Long-Term Commitment: We provide clients with ongoing support and advice. As life evolves, behaviours change. So, we work to ensure our clients coverage remains optimal as their circumstances change.