--- title: The Importance of Good Underwriting description: Last week we explored just how much opportunity does exist in the US protection gap. The secret to unlocking that opportunity is crisp underwriting... image: https://www.intermap.com/hubfs/Blog/underwriting_with_cat_risk.jpg --- [Investors](https://www.intermap.com/investors-2018-0) |[ Partners](https://www.intermap.com/partners-2018-0) |  [WebStore](https://store.intermap.com/MapShop.aspx?GeoLocation=World) [![Intermap Technologies Inc.](https://www.intermap.com/hs-fs/hubfs/Intermap%20Logo%202019%20-%20White.png?width=1656&height=277&name=Intermap%20Logo%202019%20-%20White.png "Intermap Technologies Inc.")](http://intermap.com) # [The Risks of Hazard](https://www.intermap.com/risks-of-hazard-blog) ## [The Importance of Good Underwriting](https://www.intermap.com/risks-of-hazard-blog/2018/02/the-importance-of-good-underwriting-0-1) Posted by [Ivan P. Maddox](https://www.intermap.com/risks-of-hazard-blog/author/ivan-p-maddox) on Feb 20, 2018 3:59:54 PM - [Tweet](https://twitter.com/share) ![underwriting_with_cat_risk.jpg](https://www.intermap.com/hs-fs/hubfs/Blog/underwriting_with_cat_risk.jpg?width=400&height=266&name=underwriting_with_cat_risk.jpg) The past year was a tough one for US cat losses, especially wildfire and flood. [Last week](https://www.intermap.com/risks-of-hazard-blog/2018/02/the-protection-gap-quantified-0-1) we explored just how bad it was, but also just how much opportunity does exist in the US protection gap. The secret to unlocking that opportunity, without undue overexposure, is crisp underwriting. One of the main takeaways from [AM Best’s US Property/Casualty 2018 Review and Preview](http://www3.ambest.com/ambv/bestnews/newscontent.aspx?AltSrc=104&RefNum=206125) (published Feb 6) illustrates clearly the importance of good underwriting. And here is why: “the industry 2017 combined ratio is estimated to deteriorate to 105.1 from 100.9 in the previous year.” Through another lens, the net underwriting loss for P/C insurers was $30b, mostly because of cat losses. Many insurers might just shrug their shoulders at this, point to their ample reserves, and say that bad cat years can happen. Other insurers, however, won’t just shrug their shoulders. They will realize that bad cat years are becoming more common, and that losing money on their underwriting is no longer a great idea with returns on capital so low. And yet other insurers will already have worked on their underwriting, found solutions that can deliver property-specific risk assessments on wildfire and flood. Many of those insurers underwrote cat perils at a profit in 2017. How do we know? [We work with them](https://www.intermap.com/software/insitepro). Topics: [Insurance Protection Gap](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-protection-gap), [Effective Underwriting](https://www.intermap.com/risks-of-hazard-blog/topic/effective-underwriting), [Perils](https://www.intermap.com/risks-of-hazard-blog/topic/perils) ## [The Risks of Hazard Blog](https://www.intermap.com/risks-of-hazard-blog)   [![rss-feed](https://www.intermap.com/hs-fs/hub/395294/file-2218415117-png/images/rss-feed.png?width=27&name=rss-feed.png)](https://www.intermap.com/risks-of-hazard-blog/rss.xml) Welcome to The Risks of Hazard, brought to you by Intermap Technologies®. From the latest industry news and trends, to insight from thought leaders around the globe, stay tuned for a variety of content aimed at helping you better understand the role of location-based intelligence in the world of insurance underwriting and risk assessment. To see how Intermap delivers analytics tailored to your underwriting, visit our [InsitePro](https://www.intermap.com/software/insitepro) page. ### Subscribe to the Risks of Hazard blog! ### Posts by Topic - [Flood Insurance (64)](https://www.intermap.com/risks-of-hazard-blog/topic/flood-insurance) - [Insurance Underwriting (62)](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting) - [Flood Risk (43)](https://www.intermap.com/risks-of-hazard-blog/topic/flood-risk) - [Risk Management (42)](https://www.intermap.com/risks-of-hazard-blog/topic/risk-management) - [Insurance Protection Gap (32)](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-protection-gap) - [Private Flood (29)](https://www.intermap.com/risks-of-hazard-blog/topic/private-flood) - [Flood Modeling (28)](https://www.intermap.com/risks-of-hazard-blog/topic/flood-modeling) - [Property Insurance (26)](https://www.intermap.com/risks-of-hazard-blog/topic/property-insurance) - [Natural Hazard Risk (25)](https://www.intermap.com/risks-of-hazard-blog/topic/natural-hazard-risk) - [Natural Catastrophe (24)](https://www.intermap.com/risks-of-hazard-blog/topic/natural-catastrophe) - [Floods (23)](https://www.intermap.com/risks-of-hazard-blog/topic/floods) - [InsitePro (21)](https://www.intermap.com/risks-of-hazard-blog/topic/insitepro) - [Risk Scoring (17)](https://www.intermap.com/risks-of-hazard-blog/topic/risk-scoring) - [Wildfire (17)](https://www.intermap.com/risks-of-hazard-blog/topic/wildfire) - [Insurance Software (16)](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-software) - [Insurance Technology (16)](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-technology) - [Effective Underwriting (15)](https://www.intermap.com/risks-of-hazard-blog/topic/effective-underwriting) - [Earthquake (12)](https://www.intermap.com/risks-of-hazard-blog/topic/earthquake) - [Other Risk Models (11)](https://www.intermap.com/risks-of-hazard-blog/topic/other-risk-models) - [NFIP (10)](https://www.intermap.com/risks-of-hazard-blog/topic/nfip) ©2026 Intermap Technologies®. 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