Protection CPD Course  

Guide to the evolution of underwriting

  • Explain how transparency in underwriting has evolved
  • Explain how solvency rules affect insurers
  • Identify ways innovation and a more tailored approach have evolved
Guide to the evolution of underwriting
Credit: Gladson Xavier via Pexels


There has, however, undoubtedly been a gradual evolution in the transparency of the underwriting process - origins which can be traced back to when protection insurers started publishing their claims statistics some 15 years ago, but the main push has been more recent. 

The underwriting process had been largely unknown to advisers, and it was quite hard for them to find out why customers received adverse claims decisions.    

But the industry realised it needed to do more to earn the trust of advisers and consumers.

And with an insurer’s underwriting strategy having a significant impact on its solvency, the past year could certainly have been a cause for concern.

According to rating’s agency, Moody’s, the impact of coronavirus on European life insurers has been limited as the virus mostly affects older people, who are typically not insured.

But there is more concern about the potential impact of ultra-low interest rates and other investment risks, which affect insurers of all types. 

This guide will explore how insurer underwriting strategy has been evolving, how providers are responding in turbulent times, while trying to maintain and strengthen consumer trust.

The guide is worth an indicative 60 minutes of CPD.

In this guide


Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. The origins of transparency in underwriting can be traced back to what actions carried out by insurers?

  2. True or false. True or false. An insurer is solvent if its assets exceed its liabilities/capital requirements.

  3. True or false. The current prudential regulatory regime in the UK is still the EU’s Solvency II Directive, which requires insurers to have enough capital to survive a 1-in-50-year event, and little is likely to change because of Brexit.

  4. What is a menu based approach to underwriting?

  5. What does it mean when an insurer offers the ability for the adviser to ‘delegate’ underwriting to the customer?

  6. True or false. A potential development taking place in the protection industry is the ability for people to take out protection policies instantly but have the underwriting done later.

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain how transparency in underwriting has evolved
  • Explain how solvency rules affect insurers
  • Identify ways innovation and a more tailored approach have evolved

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