Underwriting Audits Can Increase Placement Rates

In 2003, the author wrote that reinsurers were conducting more client audits due to a “new reality” aimed at improving transparency and oversight. Although this shift had its growing pains, it appears that improved communications and diligence on the part of both reinsurers and direct writers have paid off; in many instances the audit results for our clients have improved significantly.

Today, underwriting audits are still about verifying appropriate risk assessments. That’s never going to change, because overly aggressive underwriting will show up at claim time. However, there should be more to an audit than that.

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