Definition: What is an underwriter?

An underwriting agent is a specialised insurance broker who takes on many tasks that an insurance company would normally do itself. These include the development of insurance products, the assessment of risks and the settlement of claims.

The key difference is that an underwriter does not bear the financial risk itself, but works together with an insurance company or risk carrier. These are responsible for the payout in the event of a claim. This allows the underwriter to concentrate on developing insurance solutions.

By working with several risk carriers, an underwriting agent can therefore act very flexibly and develop new insurance products more quickly. Thanks to a high affinity for technology, these insurance solutions can be seamlessly integrated into the partners' existing business processes.

Differences between an underwriting agent and an insurance company

Why should you work with an underwriting agent rather than directly with a traditional insurance company?

• Flexibility: Traditional insurers usually offer standardised products. By developing their own products and working with several risk carriers, underwriting agents can customise their products to meet their customers' requirements. In the case of insurance companies, internal structures and processes sometimes stand in the way of rapid customisation.
• Speed: What is an underwriting agent without short decision-making channels? While large insurance companies often have to go through complex internal reviews and approval processes, underwriting agents can develop and implement new insurance products quickly. This is an enormous advantage, especially in dynamic markets.
• Digital integration: Many modern insurance underwriters are so-called InsurTechs, i.e. technology-driven insurance service providers. They rely on digital interfaces (APIs) that enable simple and seamless integration into existing business processes. This allows insurance companies to be integrated directly into existing business processes. Normal insurance companies often still solve integration through paper applications or cumbersome e-mail correspondence.

Advantages of working with an underwriting agent

Companies benefit in several ways from a partnership with an underwriting agent:

• Modular insurance solutions: Insurance policies can be flexibly adapted to the business model - from leasing instalment cover to letters of protection for rental equipment.
• Automated processes: The digital connection ensures smooth and time-saving processes - from policy creation to claims settlement.
• Customer-centred offers: Customised insurance solutions increase the attractiveness of your own offering and strengthen customer trust.

Why underwriters are ideal for leasing, rental and hire companies

Standardised insurance is often inadequate, especially in industries that rely on flexible contract models. By being able to combine modular components, companies can offer their customers customised insurance - without superfluous additional costs. Another plus: insurance underwriters rely on digital processes that enable quick and uncomplicated processing when concluding a contract or reporting a claim. This means that both companies and end customers benefit from optimised cover.

Conclusion: Why an underwriting agent is the better choice

Underwriting agents play a central role in the insurance industry - they design their own products and also handle claims processing.

InsurTechs are also increasingly utilising the underwriting agent model. One example of this is hepster, which designs and offers its own products as an InsurTech - without acting as a traditional insurer. This combination of technology and underwriting agent makes it possible to offer insurance in a targeted manner and tap into new markets.

This shows that the underwriting agent is not only an established model in the insurance world, but also a forward-looking one - especially in a digital and efficient environment.