Medical underwriting

Medical Underwriting

Medical underwriting (pronunciation: /ˈmɛdɪkəl ˈʌndərˌraɪtɪŋ/) is a process used by insurance companies to evaluate the risk of insuring a specific individual. This process involves assessing the individual's medical history and current health status to determine the likelihood of the individual making a claim.

Etymology

The term "underwriting" originates from the practice of having risk takers write their names under the total amount of risk they were willing to accept for a specified premium. Although this term is not specific to the insurance industry, it has been adopted and adapted by insurance companies. The term "medical" is added to specify that the underwriting process is specifically related to the individual's health and medical history.

Process

The process of medical underwriting involves several steps. First, the individual seeking insurance fills out a comprehensive health questionnaire. This questionnaire may ask about the individual's personal and family medical history, lifestyle habits such as smoking and exercise, and any current or past health conditions.

The insurance company then reviews this information and may request additional information such as medical records or a physical examination. Based on this information, the insurance company determines the risk of insuring the individual and sets the premium accordingly.

Related Terms

Risk assessment: The process of evaluating the potential risks involved in a particular situation.
Insurance premium: The amount of money an individual or business pays for an insurance policy.
Health questionnaire: A questionnaire that asks about an individual's health history and lifestyle habits.
Physical examination: A comprehensive examination of a person's physical health, typically conducted by a healthcare professional.

Criticisms

Critics of medical underwriting argue that it can lead to discrimination against individuals with pre-existing conditions and can make insurance unaffordable for those who need it most. However, supporters argue that it is necessary for insurance companies to accurately assess risk and set premiums accordingly.