Insurance and Underwriting Analyst

Role cheat sheet

Written and earned premium

Written premium reflects policies booked. Earned premium reflects coverage already provided. Use consistent gross or net measures.

Frequency and severity

Frequency counts claims per unit of exposure. Severity measures average cost per claim. Separate changes in mix from changes in risk.

Review the lesson

Loss and combined ratios

Loss ratio compares incurred losses with earned premium. Combined ratio adds the expense ratio using the insurer’s basis.

IBNR

Incurred but not reported claims are losses that have occurred but are not yet reported. They are estimated in outstanding claim liabilities.

Reinsurance

Transfers defined insurance risk to another insurer. Assess premium ceded, retained risk, attachment limits and counterparty exposure.

Stress and capital

Test claim inflation, catastrophe concentration and reserve deterioration together when relevant.

Review the lesson

Practise interview questions