Fundamentals of Property Underwriting

Course Description:

This course provides a comprehensive introduction to the principles and practices of property underwriting in the insurance industry. Designed for aspiring underwriters and professionals seeking to enhance their knowledge, the course covers key topics including risk assessment, policy terms and conditions, loss control measures, and the impact of external factors on underwriting decisions.

Participants will learn how to evaluate property risks effectively, analyze various types of properties, and apply underwriting guidelines to make informed decisions. Case studies and real-world examples will be utilized to illustrate best practices and common challenges in the field.

Target audience:

underwriters

Number of attendees:

A minimum of 20 and a maximum of 25.

Intended Learning Outcomes

1.     Welcome and Course Overview

·         Objectives of the training.

·         Importance of property underwriting in risk management.

2.     Introduction to Property Insurance

·         Basic insurance principles.

·         The role of property insurance in protecting businesses.

3.     Types of Property Insurance

·         Differences between property insurance products.

·         Main coverage extensions related to commercial property insurance

4.     Identifying Risk and Fire Control

·         Causes of fire and common hazards.

·         Fire risk control methods and the role of underwriting in risk mitigation.

5.     Inception and Propagation of Fire Hazards

·         How fire hazards start and spread.

·         Factors influencing fire propagation in different settings.

1.     Relative Fire Hazards in Building Construction

·         Fire risks based on building materials and construction types.

·         Assessing fire risk based on building structure and use.

2.     Fire Detection, Protection, and Control

·         Overview of fire detection systems (alarms, sprinklers, extinguishers).

·         Practical strategies for fire prevention and control in various industries.

3.     Basic risk assessment procedures and main tactics

·         Understand the importance of a proper risk assessment

·         Describe the key principles for Underwriting new risks

·         Evaluate the key risk exposures for Property and Business Interruption

·         Understanding the risk defines underlying exposures

·         Minimum required information for better underwriting decision

4.     Risk Engineering

·         Risk identification and assessment

·         Risk avoidance and reduction

·         Key Risk evaluated – Exposures other than fire

·         Loss Estimates/PML and Prevention measures tactics

·         Key elements of a proper Risk Assessment

5.     Loss History Analysis

·         Causes, Frequency, Severity, And actions

·         Understand how loss history influences underwriting decisions and pricing.

6.     Sufficiency of Premium Calculation

·         Methods for calculating adequate premiums.

·         Burning cost calculation

7.     Wording

·         interpret the key components of All Risks policies and the main differences to Named Perils coverages. “Insuring Clause”

·         Discuss the different aspects of the “Chain of Causation” and determine the proximate cause of loss.

Assessments

§  A pre/post- assessment – 10 Multiple Choice Questions covering the main course ILOs conducting at the beginning of the course, the difference between pre and post assessment is used to assess the progress in filling the training gap.

§  A Final assessment: 30 MCQs

§ Pass with Distinction (PD):   100% – 75%

§ Pass (P): 74% -50%

§ Fail (F): Less than 50% (granted an attendance certificate only)

Course duration: 5 Hours\ 3 Days