In Chapter 18 AS philosophies are mentioned and in Chapter 21 U/W philosophies are mentioned. Are these just documents that set out the principles behind how the company wants to approach AS/UW? How do these differ from procedures and approach taken? Thank you,
The word 'philosophies' just refers to the over-arching high-level principles that the insurer would apply to that particular activity. Yes, they are probably documented somewhere - but the term is referring to the principles themselves, not their documentation. The actual process and approach taken (the practices) will be more detailed. There is information in Chapter 20 Section 2.3 about the distinction between principles and practices in the context of WP business, which should help in appreciating the difference. For example, a principle might be that asset shares will be smoothed before being used to set terminal bonus rates. The practice will be exactly how that smoothing is performed.
