Art v Science

Walk through the City of London and ask people working in the insurance market ‘what makes a good underwriter?’ and you’ll probably receive as many different replies as the number of those questioned.

Insurance underwriting is poised between an art and a science. It combines technical skill with subjective judgement of risk. Nonetheless, there’s no doubt that evaluation of risk is at the very core of good underwriting – as it has always been.

Many industry commentators are quick to point out that the London Market has not embraced technology as well as it could have done. But that should not detract from the fact that the fundamental underwriting model is at the centre of what the Lloyd’s market does.

The traditional model of a broker sitting at a box discussing the specifics of a risk with the requisite underwriters may sound quaint and old-fashioned to some, but it’s a system that’s been proven to work.

At Corin, we understand the true value of this traditional approach to risk. We place underwriting at the core of its business philosophy. Trying to define such an underwriting model within strict parameters is not easy, but our experience has shown that there is an art to underwriting which needs to be appreciated and fostered:

All risk carries ambiguity, and for the best underwriters this is the best part of the job. At Corin, we relish the subjective side of underwriting. We still use IT platform to support our business, but it is at the back-end, not the front. Technology is useful but there is only so far one can go with it – ultimately, brokers require a more interpretive service.

To work with an MGA who truly understand the fundamentals of underwriting, get in touch – we’d love to see how we could work together.