Abstract
The purpose of underwriting is to choose to cover, from all the risks which are proposed to the insurer, those which collectively will be profitable. Essentially, this means that probable claims and the associated handling expenses will be less than the technical reserves held against those claims, so that the proportion of the premium income remaining after providing for these reserves (together with any investment income from the reserves) is available for profit.
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References
Benjamin, B. (1977) General Insurance (London: Heinemann).
Berliner, B. (1982) Limits of Insurability of Risk (Englewood Cliffs, NJ: Prentice-Hall).
Carter, R.L. (ed.) (1973) Handbook of Insurance (Brentford: Kluwer Publishing) (continuously updated).
Coe, L.D. (1978) ‘Optimisation by the Use of Linear Programming’ (unpublished).
Diacon, S.R. and R.L. Carter (1988) Success in Insurance (London: John Murray) 2nd edn.
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© 1990 Stephen Diacon
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Benjamin, B. (1990). Underwriting and the Selection of a Liability Portfolio. In: Diacon, S. (eds) A Guide to Insurance Management. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-07495-2_8
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DOI: https://doi.org/10.1007/978-1-349-07495-2_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-07497-6
Online ISBN: 978-1-349-07495-2
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