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 evidence may help
Section titled “Where Glacis evidence may help”A scoped evidence packet can be tested as an input to risk selection, loss-control review or claims investigation. Establish which controls ran, what effects were observed and which paths remain outside capture. The authorised insurer decides whether those facts are useful for a particular underwriting purpose. STABLE
Premium credits, loss-ratio improvement, profit share and capacity require separate validation and agreements. See the evidence-to-underwriting loop.
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) |