Underwriters are the decision makers behind all types of insurance companies and essentially are the ones that decide whether a claim is approved or not. They basically control the behind the scenes of an insurance company and will determine (based on a risk assessment) all the factors and features of a policy such as who the company will insure, the price of the premiums and what is included in a car insurance policy.
When it comes to car insurance, if a customer makes a claim, the underwriters will assess the situation and determine whether the claim is approved or denied. If something looks suspicious or if the person at fault is claiming it wasn't their fault, the underwriters may investigate the incident further and speak to the police if required to better determine who they can make the claim against. It is then up to the car insurance company to notify the customer of the situation and organise for repairs, payment or adjustment to the claim.
The majority of car insurance policies are held with companies that are underwritten by the same players. These underwriters are big name companies that have a huge financial base and have been around for years. For instance Bingle is underwritten by AAMI which is underwritten by Suncorp Metway, GIO is by Suncorp Metway, and AON is by GGU which are also the underwriters for Bendigo Bank as well as other financial institutions.
So if you are unsure of a smaller less known car insurance company, find out who their underwriter is as you may be surprised and it may give you the confidence you require to go ahead with the quote.
Some car insurance companiesalso have the facilities and the capabilities to do their own underwriting. For instance, Allianz do their own underwriting as well as for other companies like the National Australia Bank. Youi also does all of their underwriting themselves.
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