Landing a big deal often receives a lot of glory; but how complicated is underwriting large risks, really?
Panelists at the NetDiligence conference in Santa Monica joined moderator, Catherine Mulligan, Global Head of Cyber for Aon’s Reinsurance Solutions, on stage to discuss.
Much of the underwriting and appetite for large risk happens before the deal even walks through the door. Underwriters are making decisions on a prospective account based on industry classification, and knowledge of microsegment data and SME insights before even seeing it. At the time of underwriting and negotiating, limits management and attachment become more of the focus.
An application with binary questions is more obsolete for large risk, and underwriters do not have the luxury of vetting a company for weeks. External tools reporting security signals provide yet another link in the chain of information sources, but again, are up for interpretation.
Therefore, underwriters must gather information on a risk from various sources throughout the underwriting process and decide how much importance to weight each. Given the current ecosystem for evaluating risk, finding your sources, and refining your approach ahead of time will afford the highest confidence level for pulling the trigger on any one risk.
