How Predictable Are You In The Eyes Of An Underwriter?
Risk=Uncertainty of outcomes
Hazard= Potential cause of loss
Insurance = Transfer of risk, caused by a hazard, to someone else for a price
Promise made today, to do something tomorrow, at a cost determined in the future
In the eyes of a carrier you want to be as predictable as possible. You want your loss history to be bump-free – a Steady Eddie. The more predictable you are, the less risk for an insurance company to assume.
Remember – if your loss history is currently up and down as in our example, you can change that history and become more predictable.
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