Claims underwriting confusion

[Rebecca Shurville]

Hi, I see in the past paper IFoAs answers, they frequently refer to claims underwriting. Is this just another way of saying claims management or is this back-end underwriting?

Thanks,
Becca

 

[Sarah Byrne]

Hi Becca

Claims underwriting is the process of checking the claim is valid. It will be carried out on all claims, whether there is front-end or back-end underwriting. Claims management would generally relate to ongoing claims management, eg managing IP claims via interventions or rehabilitation to try and reduce claims durations, but could also include claims underwriting as part of this. For some products, like CI insurance, you could just consider claims underwriting (as we check the claim is valid and then pay out). For products like IP insurance both claims underwriting and management could be relevant.

Having said that, the examiners may be using the term 'claims underwriting' broadly and could well mean 'claims management' within it too (I'm not sure exactly of the context of where you have seen it). As long as it's clear what you are suggesting (which is where examples are particularly useful in your solution) you should score credit.

Hope this helps. Good luck with your revision!
Sarah

 

[Rebecca Shurville]

It makes complete sense (bar your comment on the usual level of examiner report wooliness!)

Thank you very much!
Becca