Many financial professionals think of field underwriting as simply collecting facts to pass along to an underwriter. In reality, it’s much more than that. Effective field underwriting is essential in setting client expectations, selecting the right carrier, and ultimately ensuring a smoother, faster approval process. It’s more than gathering information; it’s about using it strategically to enhance the client experience and improve your bottom line.

 

What Is Field Underwriting?

Field underwriting is one of the most critical steps financial professionals can take to ensure the best underwriting outcomes for clients. It involves gathering key information, such as tobacco use, family history, body build, medical impairments, marijuana use, and medications, that may impact underwriting offers during the initial meetings with clients. Just as important are nonmedical factors like moving violations, high-risk activities, and criminal history.

Good Field Underwriting Is in the Details

The more details financial professionals gather early on, the better the underwriting results. While asking personal questions upfront may seem uncomfortable, it is essential. Addressing these factors gives a complete picture of the client upfront, allowing underwriters to recommend the most appropriate carriers and set realistic expectations.

 

Benefits of Field Underwriting

 

Setting Client Expectations Early

Strong field underwriting allows financial professionals to set proper expectations with clients. For example, a family history of premature death from coronary artery disease may disqualify someone from Preferred rates with certain carriers. Similarly, a tobacco chewer might qualify for non-smoker rates with select carriers, while others would classify the client as a smoker. Establishing clear expectations builds trust and reduces the likelihood of surprises during the approval process.

By taking the time to ask the right questions in the beginning, you can avoid a scenario where a client is quoted one rate but ultimately receives a much higher premium due to undisclosed health conditions. Clients appreciate honesty, and being upfront about potential outcomes fosters long-term trust.

Choosing the Appropriate Carrier from the Start

A common mistake financial professionals make is selecting a carrier based solely on the lowest illustrated rate. While this approach might seem logical, it often leads to unexpectedly higher premiums or even declined applications if the carrier’s underwriting standards don’t align with the client’s profile. Different carriers evaluate medical histories, tobacco use, and other risk factors in different ways. Picking a carrier unsuitable for a client's health history can result in an unfavorable rating, while choosing one that is more flexible for the client’s specific situation can lead to better offers and lower premiums.

Instead of focusing only on price, financial professionals should prioritize carrier suitability based on the client’s specific health history and lifestyle factors. A strategic approach to field underwriting can increase placement rates and reduce the need for reapplying or shopping policies after the fact.

Reduced Turnaround Time and Back-and-Forth

No one — clients, financial professionals, or underwriters — likes excessive back-and-forth during the underwriting process. Yet, without proper field underwriting, that’s exactly what happens. When key details are missed in the initial meeting, financial professionals are forced to go back to clients for clarification, which can slow down the process and create frustration.

Gathering comprehensive information upfront minimizes unnecessary follow-ups. This leads to faster approvals, protected clients, and fewer abandoned applications.

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. Accurate, detailed information upfront ensures a faster turnaround and increases the likelihood of approval at the applied-for rate class, enhancing the client's experience. Happy clients generate both repeat business and referrals!