- The typical u/w description by an unknown author in The National Underwriter
"A typical u/w is a man past middle age, spare, wrinkled, intelligent and cold; passive, noncommittal, with eyes like a codfish, polite in contact but at the same time unresponsive-cruel, calm, and as damnably composed as a concrete post…"
- Raises the question of whether there is an u/wing temperament. The above description combines a dry sense of humour with a certain grudging respect.
- The shared set of personal qualities or characteristics that makes successful u/w's might include the following:
- Curiosity
- Positive Attitude
- Adaptability
- Motivation
- Creativity
- Customer Focus
- Decisiveness
- Empathy
Curiosity
- "The Power of Why"
- In making a decision to accept or reject a risk the u/w must work within certain constraints. (see example on bottom of page 3)
- The u/w's job is to make not the right decision but the best decision under the circumstances.
- Curiosity leads to thorough understanding. To make the best decision, an u/w needs more info than will allow a merely adequate decision.
- "Complacency is the enemy; curiosity is the key"
Attitude
- Uncertainty causes stress. Yet an u/w's job is to make decisions under conditions of uncertainty. Uncertainty is a basic fact of an u/w's working life. Whether the u/w suffers or thrives under the uncertainty inherent in the job is to a large extent determined by his or her attitude.
- Uncertainty can also lead to a negative attitude. Those who approach their jobs mechanically often have negative attitudes.
- U/w's negative attitudes to a risk may lead to the insurer suffering a reduced premium volume and lower profits, even if the risks the u/w does accept are profitable.
- The dangers of an unduly positive attitude can be as counterproductive if it prevents the u/w from discriminating between risks and negotiating careful terms.
- U/w needs to strive for an attitude known as "optimistically realistic"
Adaptability
- Things change; nothing stays the same. An u/w's adaptability to change is therefore an aspect of the attitude that is so important to an u/w's success. (see example on page 6)
- Change is complicated by the fact that it does not occur everywhere at the same time.
- Adaptation must happen quickly.
Motivation
An u/w must cope with uncertainty and make decisions alone, yet another aspect of attitude being motivation. Underwriting is a demanding job and it demands a highly motivated person to perform it. An u/w must be a "self-starter", he or she must want to learn and improve. Underwriting rewards initiative.Creativity
v If u/wing rewards initiative, it also rewards creativity. An u/w must be creative enough to find solutions to problems and resolve conflict with others.
v Problem-solving and conflict resolution can be more difficult for the u/w by the fact that no two risks are alike.
v An u/w should exercise his or her ingenuity to devise conditions under which a risk can be made acceptable and terms under which he or she may in good conscience agree to provide insurance. (see example on bottom of page 8 and continuing on page 9)
Customer Focus
Ø In the grip of competing demands on an u/w's time, it can be easy to forget about customers and even to resent their requests as intrusions. We must bear the customer in mind with everything an u/w does, as without customers there is no need for u/w's.
Ø An important concern is the ability to identify customers. U/w's have both internal and external customers.
Ø The successful u/w is the u/w who bears in mind the interests of all of his or her customers and manages to balance their sometimes competing interests - in short, customer focus.
Decisiveness
ü Perhaps the most important of the successful u/w's personal qualities is decisiveness. The two essential parts of decisiveness are courage and judgment.
ü Performance is measured by profitability of the portfolio of risks for which he or she is responsible.
ü It takes courage to overcome a fear of losses.
ü Uncertainty can never be eliminated so an u/w should not be indifferent to loss.
ü If the u/w reviewing the file after a loss would make the same decision to accept the risk, then the decision is a good one.
ü An u/w only has a certain amount of time and resources available to seek info about a risk.
ü Definition - Paralysis by Analysis - may be understood as the tendency to let the desire for ever more info about a risk defeat the need to make a decision about the risk.
ü Judgment is formed by the quality of courage and experience.
ü Courage is the single most important part of u/wing virtues, decisiveness.
Empathy
- Empathy is the personal quality that underlies the others and allows u/wing relationships to thrive. "Put oneself in the shoes of another"
- A perspective based on empathy for others allows the u/w to remain highly motivated and to adapt to constant changes that can be a cause of stress and a basic fact of an u/w's life.
Communication: The Underwriting Temperament in Action
- Hard skills - the development and application of hard skills reflect characteristics of u/wing temperament such as curiosity, attitude, creativity, customer focus and decisiveness.
- Soft skills - the development and application of soft skills, especially communication skills, reflect characteristics of u/w temperament such as attitude, customer focus and empathy.
- Good communication creates good will. An u/w must always strive to communicate as one professional to another. (see example on page 14)
- An u/w needs good communication skill in documentation, including his or her thought process.
Barriers to Communication
- Broker and U/w's have common interests but they are not identical. In their common interest, both parties will be selective in the risks they consider, but their differences in emphasis and approach can still lead to conflict.
- An us vs them attitude can harm the relationship between broker and u/w, any conflict that is at an impasse should be referred to a supervisor or manager.
- The "old-boys network" often exists with senior professionals. A broker may end up knowing more about the insurer's workings and direction. This challenge can best be met with experience. The u/w should be concerned with maintaining credibility by thorough preparation and communicating in a professional way.
Potential for Conflict
Potential for conflict exists in any human interaction. For an u/w this may be having to deliver bad news such as declining a risk, increasing premiums or raising deductibles. At all times the news should be delivered completely and with tact. The u/w owes the broker the courtesy of a written reply-but not by email- or a phone call followed by confirmation in writing. Ultimatums should be avoided if possible. If they become necessary they should be delivered with diplomacy. Conflict can also arise out of anger. When dealing with anger an u/w must avoid taking it personally. Instead summon the empathy and remain polite and professional throughout the encounter.Methods of Communication
v Important to use the appropriate medium whether it be an email, phone call, or printed letter. Phone calls do not keep records, so they should always be followed up in writing.
v Phones can be a good way of building a relationship. An u/w must pay special attention to his or her tone of voice, or the u/w risks communicating a different message then intended.
v U/w must also keep in mind the time zones.
v Voicemail etiquette - good etiquette minimizes problems by:
- answering the phone if possible.
- record a new greeting daily.
- use a businesslike tone, in recording a greeting or leaving a message.
- when leaving a message leave your number at least twice on the message.
- return messages promptly and don't let them accumulate.
> Email is increasingly important in communication. Its convenience makes it an attractive way to communicate. It also date stamps it and shows a time.
> Email can present its own challenges such as prioritization. Email is inappropriate in situations where a more personal touch is needed instead.
> Email is not private. Email must be used with care. An u/w should resist the temptation to send a message in haste without taking the time to think about what it says. Save it in a draft and if the message is clear and cannot be misinterpreted, it is ready to be sent.
Diversity
Ø An u/w should expect to encounter diversity in regional or national exposures and attitudes; business and insurance practices; language and culture.
Ø Regions pose their own unique exposures to loss for an u/w in addition to common ones in all regions.
Ø Curiosity must reflect a respect for those traditions that allow the u/w to communicate effectively with risks and fellow insurance professionals of all backgrounds.
Ø The u/w must be more concerned to understand than to be understood by those whose first language is not the same as the u/w's.
Ø Good business writing keeps sentences short and words simple and thus communicates a message that cannot be misconstrued by the reader.
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