Metode berasal dari bahasa Yunani “Greek”, yakni “Metha” berarti melalui , dan “Hodos” artinya cara, jalan, alat atau gaya. Dengan kata lain, metode artinya jalan atau cara yang harus ditempuh untuk mencapai tujuan tertentu.

Underwriting Philosophy and Underwriting Guidelines  (chapter 1: Principles of Underwriting)

• A company's underwriting philosophy and underwriting guidelines provide underwriter with guidance in their risk assessment process. 
• An underwriting philosophy, also known as underwriting objectives, is a set of (serangkaian) objectives that guides all of an insurer's underwriting actions and that generally reflect the insurer's strategic business goals and includes its pricing assumption for products.
• An insurer's underwriting philosophy describes in general terms the types of risks that the company will and will not accept.
• In whatever manner an insurer's underwriting philosophy and underwriting guidelines evolve (berkembang), the insurer must focus on approving and issuing coverage that is 

1. Equitable (wajar) to the Insureds
2. Equitable to the Insurer
3. Deliverable by the Producer

Each of these elements is important in ensuring that coverage is provided fairly and objectively and that customers and producers are appropriately and ethically served by the insurance company.

Insurance Underwriting Process (CII) 
CHAPTER 8 

UNDERWRITING CONSIDERATION

Learning objectives

• describe underwriting principles both generally and in connection with (kaitannya dengan) specific classes of business

Basic principles of underwriting

In relation to general (non-life) insurance, we can distinguish insurers' general approach to underwriting in respect of personal insurances and commercial insurances.

Underwriting personal insurances can be relatively straightforward (mudah). The proposal form is the main source of information and, if needed, an individual underwriting can write (meminta) to  the proposer to obtain extra information. 

Much of the work (sebagian besar) in respect of proposal forms will be (bersifat) mechanical and administrative , and the bulk (bagian terbesarnya)  will be processed with little difficult.

Many proposal forms are processed by insurers' branch offices, and as mentioned (disebutkan) earlier, by call centers. 

The underwriting of commercial business insurances is generally more complicated as unlike personal lines business the risks are less homogenous. 

Commercial  insurances range from small shops and factories to large multi-national corporations with operations in many countries throughout the world.

Risks can range from a few vehicles belonging to a company to aircraft and satellites. 

The degree of complexity (tingkat kerumitan) of the underwriting required will obviously (jelas) vary with the sheer size of the risk, but certain principles are still recognized.

The insurance underwriting process will always consist of an assessment of the following:

• The major underwriting factors affecting claims experience for the particular class of business. 
• For example, woodworkers  use potentially dangerous (berpotensi bahaya)  powered machinery, it is of no surprise therefore that the injury rate for employees in the woodworking industry is more frequent and severe than injuries to office workers. Similarly the frequency and severity of for incidents in schools and colleges (mainly arson related (terkait pembakaran)) is higher than that presented by, say, hardware shops. 
• The "average" claim per  member of the group
• The proposer's characteristics in comparison with the "average" member. 
• For example, consider the extraction ducting (saluran extraksi) over a deep fat frying (penggorengan) range in a fast food restaurant. The risk having (memiliki) good cleaning procedures, i.e. weekly filter cleaning and a bi-monthly ducting clean through is less likely to suffer a duct-related fire than the risk that has a haphazard (serampangan) cleaning procedures or routine.

In essence (pada dasarnya), the underwriter is evaluating the hazard associated with the risk which is being proposed.

Specific underwriting considerations

B1. Motor Insurance

• Driver's age
• Type and make of vehicle
• Type of use
• Geographical area
• Storage
• Driving record
• Cover required and/or extensions requested
• Vehicle modification

B2. Health Insurance

• Occupation
• Age
• Family circumstance
• Lifestyle and physical condition
• Medical history

B3. Personal insurances

1. Household insurance
• Construction
• Location
• Contents:
• Area
• Occupation during the day
• Security
2. Travel insurance
• Destination
• Purpose and duration of travel
• Group policies
• Existence of pre-existing conditions

B4. Commercial property insurance

1. Fire and special perils
• Use
• Type of goods stored on premises
• Construction and material
• Safety features
• Risk management features
• Number of floors and area
• Method of heating and lighting
• Location relative to perils
2. Theft insurance
• Trade
• Geographical area
• Any moral hazard of owner
• Nature and construction of the property
• Theft precautions
3. Glass insurance
• Use of the building
• The geographical area
4. Money insurance
• how much money id handled 
• whether there is a safe and or strong-room 
• how employees are paid 

B5. Pecuniary insurance (berkenaan dengan uang)

1. Legal expenses insurance
2. Business interruption insurance
• Could they operate from another premises?
• is replacement machinery readily available?
• Are there any critical pieces of machinery or is there any interdependency between production lines and/or sites?
• Are there any seasonal features?
• External dependencies such as supplies, customers and utilities

B6. Liability insurance

       Underwriting factors are different for the type of liability cover required:

1. Employers' liability
• the trade and occupation of the employee concerned
2. Public liability
• trade or business 
3. Pollution liability
• trade
• the materials used and
• whether there are adequate controls to prevent the escape of pollution into the air or water
4. Product liability
• the proposer's trade or business 
5. Professional indemnity 
• the exact occupation
• professional qualifications
• experience and
• degree of moral hazard