cash flow underwriting
Cash flow underwriting refers to rating a risk based on an expectation that any incurred losses will pay out slowly providing for the insurer to earn investment income on reserves adequate to cover any rate deficiency.
cash flow underwriting
Cash flow underwriting refers to rating a risk based on an expectation that any incurred losses will pay out slowly providing for the insurer to earn investment income on reserves adequate to cover any rate deficiency.
Additional Information
This is common during "soft" markets when interest rates are high and insurers are competing for market share.
