What is an "underwriting manual"?

An underwriting manual serves as an essential document that outlines the rules, guidelines, and procedures that underwriters follow when assessing risk and determining the terms of insurance coverage for applicants. This manual provides a standardized approach for making underwriting decisions, ensuring consistency in how risks are evaluated across different cases and among various underwriters within the organization.

The underwriting manual typically includes criteria for evaluating applicants, information about acceptable risk levels, and delineates the different classifications of risks. It may also cover underwriting procedures, regulatory requirements, and various pricing strategies. This organized framework helps underwriters make informed decisions based on established parameters, ultimately contributing to the financial health of the insurance company by minimizing potential losses.

In contrast, a guide for clients on how to purchase insurance, a record of past claims made by policyholders, and a promotional tool for insurance products serve different purposes and do not directly relate to the underwriting process.