Underwriting Vilnius, 09.02.2017 Egita Ostena, Commercial Property Underwriter, Balta/PZU

What is Underwriting? Setting the rate, terms and conditions on an individual risk basis

The 5 steps of Underwriting Identify & evaluate exposures Make underwriting decision Set terms and conditions Set premium Negotiate 1. What are the inherent hazards of the trade? 2. What is in place to mitigate / control the hazards? 3. What other controls might be put in place? 1. Fit with strategy 2. Fit with Risk Appetite 3. General acceptability 1. Exclusions 2. Conditions 3. Deductibles 4. Risk requirements 5. Survey 1. Technical Price 2. Discounts 3. Risk Features 4. Cover / Limits 5. Rate Plan 1. Tactics 2. Relationship 3. Agree 4. Land

What can make any object an “unwelcome business”? Unknown loss history Bad loss history Bad management Poor financial results Dangerous objects right next to Deserted buildings Buildings in an emergency condition New and unknown business, production

Hello. We’re interested in insurance Hello! We’re interested in insurance. Our business ir woodworking – we’re one of the biggest companies in the field. Can we please get an insurance offer? If your need any information, please contact me directly via email of phone, it’s also possible to arrange a meeting. Sincerely, Egita Ostena

Losses Burned forklift, indemnity 45 000 EUR Loader tipped over, indemnity 21 343 EUR Fence - damaged during storm, indemnity 45 000 EUR Stolen Audi Q3, from garage, indemnity 30 000 EUR Stolen computers from the office, indemnity 5 000 EUR Burned generator of the packing line, indemnity 25 000 EUR Theft in shop, indemnity 30 000 EUR Stolen building materials, indemnity 40 000 EUR Burned packing line diring repair work (because of welding), indemnity 90 000 EUR Theft by the builder (building materials), indemnity 35 000 EUR

Task Work in groups 20 min to prepare 4 min to present