Tell us about a time when you had to communicate difficult or challenging underwriting decisions to a client.

There was a time when a client applied for an insurance policy and, after a thorough evaluation, we determined that their risk level was too high to be accepted. I had to communicate this decision to the client, which was challenging because they were counting on the policy to protect their business. I explained to them our underwriting process and the factors we considered, such as their claims history and industry trends. I empathized with their situation and recommended alternative solutions, such as risk reduction strategies and other insurance options. Although it was difficult, the client appreciated our honesty and efforts to find alternative solutions.

In a specific incident, a client presented an insurance policy application that raised concerns due to their history of frequent claims. As the underwriting manager, it was my responsibility to evaluate the risk and make a decision. I engaged in a detailed analysis of the client's claims data, assessing the nature, severity, and frequency of the claims. Additionally, I collaborated with other departments, such as claims and sales, to gather additional information and perspectives. Based on the gathered information, I made the difficult decision to decline the application. When communicating this decision to the client, I focused on providing clear and transparent explanations of our evaluation process, emphasizing the importance of risk assessment for the long-term financial stability of their business. I also offered alternative solutions and recommendations, such as risk reduction strategies and other insurance options that aligned more favorably with their risk profile. This approach helped the client understand the reasoning behind the decision and provided them with actionable steps to mitigate their risks.

During my tenure as an underwriting manager, there was a complex underwriting decision that required effective communication and leadership. A long-term client with a significant claims history submitted an application for a new policy, which raised concerns about potential financial risks. To assess the risk, I convened a cross-functional team comprising underwriters, claims assessors, and actuaries. We conducted an in-depth analysis of the client's claims history, examining the types, frequency, and severity of past claims. This collaborative approach ensured a comprehensive evaluation and allowed us to make an informed decision. After carefully assessing the risk, we determined that accepting the application would have a detrimental impact on our portfolio's financial performance and required a premium adjustment that the client considered unfeasible. Communicating this decision to the client was challenging, as they had a long-standing relationship with our company. I took a proactive approach by scheduling a face-to-face meeting with the client and key stakeholders from my team. During the meeting, I outlined the reasons behind our decision and the potential consequences if we accepted the application without the necessary adjustments to the premium. I emphasized the importance of maintaining a stable portfolio to ensure our ability to honor commitments to all policyholders. Recognizing the impact on the client, I presented alternative risk management strategies to help mitigate potential losses and protect their business. These strategies included implementing safety protocols, industry-specific risk assessments, and an ongoing claims review process. The client appreciated our thorough approach, transparency, and guidance throughout the process. They accepted our decision and implemented the recommended risk management strategies, which ultimately improved their overall claims experience and reduced their insurance costs.