The underwriting department at MCIT works with members and service providers to ensure that all member loss exposures are accurately and thoroughly recorded, classified and rated. This ensures that members are properly covered in the event of a loss, provides equity among members and aids in MCIT’s financial stability.
Specifically, the underwriting staff and actuaries use exposure data from members in a variety of ways to support the MCIT program:
- The underwriting department calculates each member’s MCIT contribution based on established rates and rating structures applied to a member’s specific risk exposures. Examples of risk exposures range from the value and types of buildings, contents, equipment and vehicles to the number of employees and the types of work they do.
- The exposure data is used by the actuary in developing contribution rates and creating rating structures.
- The actuary uses data collected by underwriting to complete the reserve analysis and dividend analysis each year.
- Exposure data is instrumental in determining the cost of reinsurance annually.*
Throughout the year, the underwriting manager reports exposure and contribution data to the MCIT Board of Directors to inform members’ decision making.
Because the underwriting department collects details about members’ risk exposures, it is the team in charge of requesting and maintaining that data, including members’ schedules of buildings, vehicles, inland marine equipment and canines. The underwriting team processes member requests for changes to their schedules throughout the year. As a result of those changes, the team also issues endorsements and invoices.
When a member needs proof of coverage (certificates of coverage) to satisfy terms of leases and other agreements, the underwriting team processes those requests and issues the certificates.
The underwriting team responds to member inquiries regarding contributions and scheduling items for coverage.
Coverage Changes Analysis
The underwriting department supports the evaluation of coverage changes. The team analyzes existing coverage, researches potential coverage changes, recommends potential coverage changes and serves as a technical resource to the MCIT Board of Directors Governance Committee, internal staff and others.
New Member Considerations
The department is involved in the new member application process as well. The team gathers information about prospective members to help determine the acceptability of their exposures to the trust for board consideration and calculates estimated contribution amounts.