Insurance underwriting is generally misunderstood. The “unfairness” of an underwriting decision is a story often told. When someone gets denied a payout due to non-disclosure the public often rallies against the insurer and calls out the big bad company as doing everything to avoid paying. Likewise, when John and Joe, standing around the braai, discover that one is paying double for the same amount of cover. All of these are typical examples of how underwriting is misunderstood. This article should clarify the ins-and-outs and make sense of a process most of us will have to go through in our lifetimes.
To read Susan Mercer’s full article on this risky business, investment terminology and banking on a change, click here