How does an Underwriter quote?
Sending a quote to a broker is possible only after an underwriter has accepted an invitation to be on a Risk Panel. This allows him access to all the risk data posted by the broker (the Policyholder’s name may be withheld) including uploaded supporting documents (Word, Excel, pdf etc.) from which to evaluate the risk, propose pricing and coverage terms. The underwriter starts by deciding whether to accept the broker’s proposed terms in full. By doing so, he limits the fields he can alter to those not suggested by the broker. To assist with negotiations and contract formation, the underwriter may identify price sensitive terms, these being terms he is, in principle, willing to negotiate on. In addition to pricing and deductible, the underwriter must specify whether he is interested in being lead underwriter and the % of the total exposure he can take on the quoted terms. Other elements of the quote which need to be specified include whether the quote is net of broker commission and whet
