What underwriting is
Underwriting is where the MGA actually earns its keep — and where Glacis’s evidence layer attaches. This section is the bridge from “exam knowledge” to “the business.” All STABLE.
Definition
Section titled “Definition”Underwriting is the function of deciding whether to accept a risk, and on what terms and at what price. The underwriter looks at an applicant, decides accept / decline / accept-with-conditions, picks limits and exclusions, and sets the premium. STABLE
The two failure modes underwriting fights
Section titled “The two failure modes underwriting fights”- Adverse selection — if you misprice, the worst risks self-select into your book (they’re the ones who want the cheap coverage). Underwriting + classification keep the pool balanced. See 00 Principles of insurance.
- Moral / morale hazard — insurance itself can change behavior (fraud, or mere carelessness). Underwriting screens for it; policy terms (deductibles, exclusions) blunt it.
Risk selection & classification (preview)
Section titled “Risk selection & classification (preview)”The core technique is grouping like risks together so the price reflects expected loss — fair to good risks, accurate for the insurer. Detailed on 01 Risk selection & classification.
Where Glacis attaches
Section titled “Where Glacis attaches”For a Tech-E&O-for-healthcare-AI program, the hardest underwriting problem is that the risk is novel — there’s little loss history to price from. Glacis’s attested AI decisions give the underwriter signal that didn’t exist before:
- evidence of governance/controls → better risk selection,
- demonstrable controls → a schedule-rating credit (a documented reason to charge less) — see 02 Rating & pricing,
- which lowers the loss ratio → higher MGA profit share — see 03 Loss ratio & combined ratio.
This is the mechanism behind “Glacis with underwriting capability.” See 01 The flywheel.
The underwriter’s toolkit (rest of this section)
Section titled “The underwriter’s toolkit (rest of this section)”| Page | Concept |
|---|---|
| 01 Risk selection & classification | who gets in, and how they’re grouped |
| 02 Rating & pricing | how the premium is set (and credited) |
| 03 Loss ratio & combined ratio | the hinge metric — is the book profitable? |
| 04 Reinsurance & capacity | who backs the paper |
| 05 The underwriting cycle | hard vs soft markets |
| 06 Tech E&O | the Glacis product form |
| 07 Tech E&O for healthcare AI | the specific exposures (grounded in Law360) |