The underwriting process of property insurance in South Africa

Various underwriting factors pertaining to the owner of the property, the characteristics of the assets which are considered, and the risks involved with the property concerned should be evaluated by short-term insurers when underwriting property insurance. Two stipulations of insurance contracts can be employed to incorporate the underwriting factors, viz. the adjustment of the premium level due to a change in the risk profile, as well as the requirement of an excess (or deductible) when a claim is made. The most important problem areas experienced when underwriting property insurance receive the necessary attention, as well as the possible solutions to solve the intricate situations. As South Africa is a developing country with an emerging economy, the conclusions of the empirical study may serve as an illustration to short-term insurance industries in other developing countries.