PINS S4.2 What is underwriting risk?
(1) Underwriting risk is the risk arising from the process by which an insurer determines:
(a) whether or not to accept a risk; and
(b) the terms and conditions to be applied, and the premium to be charged, if the risk is accepted.
(2) Weaknesses in underwriting and in its procedures and controls can expose an insurer to the risk of operational losses that may threaten its solvency position.
|Inserted by QFCRA RM/2013-1 (as from 1st January 2015).|