Field underwriting: The key to increasing your revenue

Field underwriting is one of the most critical things financial professionals can do to ensure the best underwriting outcome for clients. Field underwriting gathers all the pertinent information that may affect underwriting offers at the initial meetings between financial professionals and clients.

The information collected is basic, including tobacco use, family history, build, medical impairments, marijuana use and medications. These are some of the most critical pieces of information financial professionals can gather to help underwriters advise which carriers are the most appropriate to apply to. Of note, field underwriting also involves nonmedical details such as moving violations, avocations and criminal histories, to name a few.

Ask questions from the beginning

The more details financial professionals can provide, the better client underwriting outcomes result. While it’s understandable that financial professionals may be hesitant to ask many questions of a client they just met, questions most likely will come up during the underwriting process. Asking questions from the onset and gathering as much detail as possible during the initial client meeting allow underwriters to narrow down the best carriers for clients to apply for the most favorable offer.

Benefits of field underwriting

• Realistic expectations. Sound field underwriting will help financial professionals set realistic expectations with clients. For example, a family history of premature death due to coronary artery disease will disqualify clients from preferred classes with certain carriers. A tobacco chewer can obtain non-smoker rates with a handful of carriers, but most will be classified as smokers. Providing clients with realistic expectations of what class they will most likely qualify for from the beginning is crucial to establishing trust between clients and financial professionals by minimizing the possibility of files being approved instead of applied for.

• Appropriate carrier choice. Field underwriting also can help underwriters recommend the best carriers to apply to. Financial professionals often base their carrier choice on the one with the cheapest rates and submit applications to that carrier. However, if the chosen carrier is not aggressive with a client's particular history, the carrier will charge a more unfavorable rate than the client was quoted. If the financial professional had applied to a more suitable carrier, the client most likely would have been approved at a better class and, subsequently, a lower premium. Choosing the most appropriate carriers in advance can also help eliminate spending additional time reapplying and re-underwriting cases if the first carrier proves unsuitable.

• Reduced turnaround time. Reducing back and forth and, subsequently, turnaround time is another benefit of field underwriting. Many financial professionals are hesitant to ask clients they just met what they deem personal or sensitive questions. The hard truth is that they likely must ask these questions eventually. Clients may be annoyed at providing information multiple times throughout the underwriting process due to an issue that could have been addressed at the initial meeting. Clients also may become frustrated, lose faith in the financial professional or the process, and ultimately decide not to pursue coverage.

• Increased revenue. Field underwriting is a surefire way to increase revenue. The more information financial professionals can provide to their underwriters at the beginning of the process, the more accurately underwriters can narrow down the most appropriate carriers and accurately predict rate classifications. Providing accurate, detailed information from the start will assure a faster turnaround time and a likely approval at the rate class applied for, providing the client with an overall positive experience. Happy clients generate both repeat business and referrals!

Field underwriting goes a long way toward securing the best approval and premium for a client. The more questions financial professionals ask clients, the better the outcomes and the happier the clients. Satisfied clients equal more revenue and a win for everyone involved.

Adrienne Wilson, FALU, ChFC, CLU, FLMI, ACS, is senior underwriting consultant, Crump Life Insurance Services. She may be contacted at [email protected].

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Adrienne Wilson, FALU, ACS, FLMI, CLU, ChFC, is an underwriting consultant with Crump Life Insurance Services. She may be contacted at [email protected].