Last updated on Apr 3, 2024

What do you do if your insurance underwriting results in a major financial setback?

Navigating a major financial setback from insurance underwriting can be daunting. Underwriting is the process insurers use to evaluate the risk of insuring a client, which determines your premiums or if you're insurable at all. If the results are unfavorable, you might face high premiums or denial of coverage, impacting your financial planning. It's crucial to understand your options and how to move forward to mitigate this setback. With the right approach, you can address the situation effectively and possibly find a more favorable outcome.

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1 Review Results

Upon receiving disappointing underwriting results, take time to thoroughly review the insurer's decision. Understanding the specific reasons for the high premiums or coverage denial is crucial. This could be due to your medical history, occupational hazards, or lifestyle choices. If anything is unclear, don't hesitate to ask for a more detailed explanation. Once you grasp the underwriter's concerns, you can consider steps to potentially improve your risk profile or look for alternative solutions.

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Thomas Netens 🍏

J'aide les dirigeants à générer du CA en décuplant leur visibilité en ligne | Ghostwriter LinkedIn & Community Manager ✍️ | Stratégie éditoriale & Création de contenu
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Dans ce cas-ci, l’assureur peut : 1) Refuser tout simplement le risque 2) Refuser le risque moyennant une surprime : Cela signifie que vous paierez cher votre couverture d’assurance. Mais vous êtes assurés. Elle est souvent mentionnée en pourcentage. Exemple : une surprime de 20%. 3) Assurer le risque moyennant une exclusion : Cela signifie que tous les dommages liés à une pathologie spécifique de l’exclusion ne seront pas couverts. Par exemple, tous les dommages liés à votre dernière opération ne seront pas couverts. Vous avez toujours la possibilité d’accepter ou de refuser les conditions que vous proposent l’assureur.

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2 Appeal Decision

If you believe there's been an error or misunderstanding in the underwriting process, you have the right to appeal the insurance company's decision. Gather any relevant information or documentation that supports your case. This could include medical records, proof of lifestyle changes, or safety measures you've implemented. Presenting this evidence to the insurer could lead to a reassessment of your application and potentially more favorable terms.

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3 Explore Options

Should the underwriting results stand, it's time to explore other insurance options. There are many providers with different risk appetites and underwriting criteria. What's unacceptable for one company might be less of an issue for another. Additionally, consider working with an insurance broker who can navigate the market for you and find a policy that suits your needs and budget, despite the underwriting setback.

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4 Adjust Coverage

Another strategy is to adjust the scope of your coverage to make it more affordable. This might involve increasing your deductible, reducing policy limits, or excluding certain coverages. While this means potentially more out-of-pocket expenses in the event of a claim, it can make your premiums more manageable. Always weigh the risks carefully and ensure you're not leaving yourself vulnerable to significant financial loss.

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5 Lifestyle Changes

Sometimes underwriting setbacks are tied to modifiable factors such as smoking, weight, or high-risk activities. Initiating lifestyle changes that improve your health and decrease your risk can lead to better underwriting results in the future. This won't provide an immediate solution but investing in your health can have long-term benefits both for your insurability and overall well-being.

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6 Professional Advice

Finally, consider seeking professional financial advice to understand the broader impact of the underwriting setback on your financial planning. A financial advisor or insurance specialist can help you assess alternative strategies, such as different investment vehicles or savings plans that can provide financial security. They can also guide you in finding insurance products that align with your financial goals and risk profile.

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