What should a general insurer review to understand acceptable risks?

A general insurer should review underwriting guidelines to understand acceptable risks because these guidelines outline the criteria and policies that the insurer uses to evaluate and assess risks when providing coverage. Underwriting guidelines include risk selection criteria, pricing policies, and risk management techniques that help insurers differentiate between high and low-risk applicants. By adhering to these established guidelines, insurers can ensure that they maintain profitability while adequately serving their clients.

While client history, market trends, and insurance benchmarks can provide valuable supplementary information that informs overall risk assessment, they do not offer the same level of detail and directive on how risks are evaluated and accepted as underwriting guidelines do. Client history can show past behavior and claims but may not cover the comprehensive criteria for risk acceptance. Market trends can indicate broader industry shifts but do not address the specifics of individual risk assessment. Insurance benchmarks can provide a comparative framework but lack the specificity required for practical underwriting decisions.