Underwriting
The process the carrier uses to decide whether to insure you and at what price.
Underwriting is the process by which an insurance carrier decides (a) whether to offer you a policy and (b) at what price. Underwriters analyze your application, pull data from third-party sources (credit reports, motor vehicle records, claims history via CLUE/A-PLUS), and apply the carrier's algorithm to set your rate.
Different carriers underwrite differently — that's why two carriers can quote the same coverage on the same person at very different premiums. One carrier might heavily weight credit; another might be more concerned about your driving record. Some carriers won't write certain breeds of dogs, certain home characteristics (knob-and-tube wiring, polybutylene plumbing), or certain businesses at all.
When Geneva quotes 25+ carriers for you, we're effectively running your information through 25+ different underwriting models to find the carrier whose algorithm prices you most favorably. This is the structural advantage of an independent agency over a captive agent (who can only quote one carrier).
Underwriting also happens at renewal — if you've had claims or your credit score dropped, your renewal premium may go up even if nothing else changed. Conversely, if you've maintained a clean record, you may qualify for "loyalty" or "claims-free" discounts.
Related terms:Premium·Insurance Score·Policy
Related Geneva services:Auto Insurance·Home Insurance