Definition

A number that reflects your risk level based on past behavior and other factors. A better score can help lower your premium and get you better terms.

What to consider

  • Understand that underwriting profit reflects risk management.
  • Compare with industry benchmarks.
  • Consider its impact on future premium stability.

Real world scenarios

  • An insurer reports underwriting profit after subtracting claims from collected premiums.
  • A mutual insurance company shows underwriting profit as part of its annual report.
  • An analyst reviews underwriting profit to gauge an insurer’s financial health.

Related terms

Insurance & Financial Protection