How does underwriting differ from field underwriting?

Underwriting is a critical process in the insurance industry that involves evaluating the risk of insuring a particular individual or entity. It primarily relies on statistical data and actuarial science to assess risk and determine the appropriate premiums for insurance policies. This is often done at an organizational level, where underwriters use historical data, trends, and various criteria to make decisions about whether to accept a risk and under what terms.

Field underwriting, on the other hand, occurs at the initial stages of the application process and involves interactions between the insurance agent and the potential policyholder. This face-to-face contact is essential for gathering specific information about the applicant's health history, lifestyle, and other relevant details that cannot be fully captured through statistical data alone. The purpose of field underwriting is to ensure that the information submitted in the application aligns with the actual risk presented by the applicant.

The distinction between these two processes highlights the importance of both statistical analysis and personal interaction in the insurance underwriting process. Each plays a vital role in managing risk effectively, but they operate at different stages and through different methods.