Ch 14 Managing the UW Dept Flashcards
suboptimization
process by which achievement of goals of one unit can jeopardize achievement of another unit’s goals, even though both are part of same organization
protective value analysis (cost/benefit analysis)
means by which value of an age-and-amount underwriting requirement to company is determined. Cost of obtaining/handling is compared to value (potential extra mortality disclosed that would have been unknown)
steps for protective value analysis
- identify block of cases on which selected requirement had been obtained
- Locate cases where requirement was source of info that led to addl mortality pricing or rating
- Determine present value of all extra mortality on cases located
- Calculate expenses of obtaining and processing requirement on all cases where it was received
- Compare extra mortality to expenses of obtaining requirement on all cases
if mortality benefit exceeds cost of requirement = protective value
functionally structured
individuals who are performing the same or very similar work are grouped together for management and reporting purposes
advantages:
1. access to training/guidance from experienced workers
2. handle volume fluctuations, redistribute work evenly
3. Professional support, role models for advancement
4. Development of expertise in discipline, function
5. Easy monitoring of consistency between employees
integrated team structure
individuals from many functional areas who work together on business of specific type or from particular source
advantages:
1. exposure to variety of disciplines, processes
2. ability to address multi-faceted problems rapidly
3. enhanced ability to focus on customer
4. facilitation of entire business process by each team member
5. representation of variety of skill levels, abilities
matrix environment
combo of functionally structured/integrated team structure.
business from specific source handled by select group of people but various work functions can report to a functional manager on full reporting basis or as needed basis.
benefits of remote workers
attract/retain underwriters
increase talent pool
work/home life balance
increased productivity
increased convenience
reduced commuting
challenges to remote workers
-clear discussions more difficult
-no face to face, written communication
-conference calls to share info
-harder to deliver feedback, conduct reviews
-difficult to determine if everyone understands
-training difficulties
-security/confidentiality
-working conditions
-quality/productivity
-employee development
10 production reports
- submitted business - cases sent to UW
- approval percentage - ratio of approved to cases submitted
- final action report - total final actions w/ breakdown for each risk class/or status
- final action by UW - breakdown of final actions for each UW
- tobacco use ratio - approval percentage by tobacco use classes
- requirements ordered - average # APS per case, % of business that is non-medical/paramed/medically examined, # of cases submitted w/ unanswered questions
- time service - avg length of time from submission to final decision
- placement ratios - for P, St, substandard
- Unit cost - cost per unit of work performed (generally per app received, or per app approved)
- informals processed - preliminary inquiries, prescreens received, % on offers made, % on formal apps received, % placed
Quality Measures
- Case Audits: workups, decisions reviewed and compared to dept standards
- Field/Client Feedback: info about UW’s communication/negotiation skills
- Reinsurer/Other External Audits: consistency, quality of dept, adherence to guidelines
Information to review to develop/monitor UW guidelines for Risk Management
- UW guidelines:
- Company Risk audit
- Authority Levels/Second Signatures
- Documentation
- Retention/Auto-binding Management
- Claims Review
underwriter authority level
limit set on max risk amount that an UW is allowed to accept alone. based on yrs of experience, training and performance
second signature
agreement from UW whose authority limit includes the amount being considered to approve a case above one’s authority limit
proper case assignment/UW authority system meet 5 needs
- expediate processing of cases
- provide risk management control on UW quality for company
- provide max utilization of skills of UW staff
- provide good service to distribution sales force
- provide growth and development opportunities for UWs
characteristic/skills in new hires
- ability to study, learn technical info
- ability to work under pressure or time constraints
- familiarity w/ email, databases, software
- clear/fluent communication skills
- ability to prioritize, organize multiple responsibilities
- problem analysis/solving skills
- ability to work independently
- experience in making complicated decisions on timely basis
