good morning! brief bio cpcu mentoring program role of an underwriter

Good Morning!

• Brief Bio• CPCU Mentoring

Program• Role of an

Underwriter

Darcie Kiper, CPCU, CLU

Underwriting Administrator

State Farm Insurance Companies

309-763-1360

CPCU Mentoring Program

Matching students with professionals...

CPCU…who, what??

• CPCU...Chartered Property & Casualty Underwriters

• A credentialed group of professionals who promote excellence through ethical behavior and continuing education

• Receive CPCU designation after passing ten comprehensive insurance exams.

Mentor Program

• Match students with industry professionals from a medley of careers...

• Underwriting, Claims, Business Analysts, Public Affairs, Consultants, Management, Actuary

• 900 members in the Central Illinois CPCU Chapter

Possible Activities

• Tour 24 Hour Customer Call Centers

• Shadow an Insurance Professional• Participate in CAT Claim Activity• Review large information system

operation• Receive exposure to a wide

spectrum of risk management fields

How do you get Involved?

• Sign Mentee Enrollment Sheet

• You will be contacted by your assigned Mentor

• Assignment will be for the Spring Semester

Benefits to YOU!

• Gain broader awareness of a variety of risk management careers

• Establish a network of insurance professionals

• Explore further areas of personal development

Underwriting at State Farm

• Auto• Fire - Commercial,

Personal Lines

• Life/Health

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Team Leader’s Responsibilities

• Accept/Decline New Business

• Monitor Existing Business

• Lead a team of Underwriting Service Asst.

• Work with a group of approximate 20 agents

Typical Day of a Team Leader

• Phone calls from agents, claim reps, and policyholders

• Review claims and review existing business

• Underwrite new business applications

• Monitor activities of EWT (empowered work team)

Other TL Activities

• Present at Agency Meetings

• Make field visits to agency group

• Attend meetings• Train on new

initiatives

Factors impacting Premiums

• Driver Experience• Use of Vehicle• Age, Gender, Marital

Status of Driver• Type of Vehicle• Territory Garaged• Coverages Selected

Underwriting Process

• Verify Driving Record of all household drivers with available resources

• Verify correct territory rating

• Verify vehicle rating - IRG

• Review use of vehicle

• Classify policy

• Code to statistically track experience

Underwriting Process

• Review for acceptability. Cancel if necessary within looksee period

• Apply discounts and surcharges

• Add endorsements if necessary

• Prepare for Issuance

Resources Available

• MVR - Motor Vehicle Record

• CLUE - Loss History Report

• UDR - Undisclosed Driver Report

Managing Unprofitable HH

• Review experience with other SF Lines

• Send Warning Letter

• Increase Deductibles or Nonrenew specific coverages

• Exclude driver(s)

• Nonrenew/Cancel Mutual Business and offer coverage in Standard Company

Factors Impacting Underwriting Decisions

• Frequency of HH Claims

• Frequency of Claims per Driver

• Severity of Claims• MVR• Time with State Farm• Other Lines w/SF

Case Studies…..

I need three volunteers!

Industry Trends

• 24 Hour Customer Service

• Changes in Distribution Channels - Agents, Direct Writers, Internet

• Experience Improving due to safer, better made vehicles

• Technology improving undewriting effeciencies

New Underwriting Concepts

• Credit Rating• Progressive - ‘Black

Box’• Point of Sale

Underwriting

Characteristics of a solid TL

• Academically Sound• Strong Communication

Skills• Interpersonal Skills• Leadership Characteristics• Customer Service

Oriented• Goal Oriented/Driven• Community Service

Career Opportunities

• Auto Underwriting - Management

• Systems - Business Analyst

• General Underwriting

• Public Affairs

• Human Resources

• Management Planning and Information Services

Best Wishes!!!

• If you ever have any questions regarding SF employment…. Call 309-763-1800

• Questions regarding the mentoring program 309-763-1360

Go ILLINI!!