--- title: The Risks of Hazard Blog | Intermap | Insurance Underwriting (3) description: Insurance Underwriting | A blog that shows the power of location-based solutions in the world of insurance underwriting & risk management. (3) --- [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) ## [Broken Records and Better Underwriting](https://www.intermap.com/risks-of-hazard-blog/2016/09/broken-records-and-better-underwriting) Posted by [Ivan Maddox](https://www.intermap.com/risks-of-hazard-blog/author/ivan-maddox) on Sep 22, 2016 7:00:00 AM - [Tweet](https://twitter.com/share) [![](https://www.intermap.com/hubfs/Blog/record_player.jpg) ](https://www.intermap.com/risks-of-hazard-blog/2016/09/broken-records-and-better-underwriting) As the analysis of insurer’s [first half results](http://www.insurancejournal.com/news/national/2016/09/19/426815.htm) come in, there are a few consistent refrains. In fact, they sound like broken records. [Read More](https://www.intermap.com/risks-of-hazard-blog/2016/09/broken-records-and-better-underwriting) 0 Comments [Click here to read/write comments](https://www.intermap.com/risks-of-hazard-blog/2016/09/broken-records-and-better-underwriting#comments-listing) Topics: [Insurance Underwriting](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting), [Private Flood](https://www.intermap.com/risks-of-hazard-blog/topic/private-flood), [Insurance Protection Gap](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-protection-gap) ## [A Homeowner’s View of the Protection Gap](https://www.intermap.com/risks-of-hazard-blog/2016/08/a-homeowners-view-of-the-protection-gap) Posted by [Ivan Maddox](https://www.intermap.com/risks-of-hazard-blog/author/ivan-maddox) on Aug 24, 2016 7:00:00 AM - [Tweet](https://twitter.com/share) [![](https://www.intermap.com/hubfs/Blog/iStock_000019582983-small.jpg) ](https://www.intermap.com/risks-of-hazard-blog/2016/08/a-homeowners-view-of-the-protection-gap) The Risks of Hazard takes a great interest in the [protection gap](https://www.intermap.com/risks-of-hazard-blog/2016/07/swiss-re-and-am-best-on-the-protection-gap) because it is both an [opportunity for underwriters](https://www.intermap.com/risks-of-hazard-blog/2016/02/growth-in-the-protection-gap) and a shortcoming of insurance as an industry. Last week, [Insurance Journal](http://www.insurancejournal.com/news/national/2016/08/18/423791.htm) published a very informative look at the U.S. residential protection gap from a novel perspective: the policy holder’s perspective. The insurance aspects of the protection gap are well documented, including [how to write in the flood](https://www.intermap.com/risks-of-hazard-blog/2016/03/how-to-underwrite-challenging-flood) [protection gap](https://www.intermap.com/risks-of-hazard-blog/2016/03/how-to-underwrite-challenging-flood), [what it looks like](https://www.intermap.com/risks-of-hazard-blog/2016/03/the-butterfly-effect-and-insuring-flood-risk), and [how it compares to emerging risks](https://www.intermap.com/risks-of-hazard-blog/2016/02/a-cat-modelers-guide-to-the-protection-gap). But it is surprisingly rare to read about what that means to the policy holders. Happily, the [Big I](http://www.independentagent.com/default.aspx) and [Trusted Choice](https://www.trustedchoice.com/) did some homework, and the results are stark. [Read More](https://www.intermap.com/risks-of-hazard-blog/2016/08/a-homeowners-view-of-the-protection-gap) 2 Comments [Click here to read/write comments](https://www.intermap.com/risks-of-hazard-blog/2016/08/a-homeowners-view-of-the-protection-gap#comments-listing) Topics: [Insurance Underwriting](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting), [Insurance Software](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-software), [Insurance Protection Gap](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-protection-gap) ## [The Risk-Price Paradox](https://www.intermap.com/risks-of-hazard-blog/2016/08/the-risk-price-paradox) Posted by [Ivan Maddox](https://www.intermap.com/risks-of-hazard-blog/author/ivan-maddox) on Aug 17, 2016 7:00:00 AM - [Tweet](https://twitter.com/share) [![](https://www.intermap.com/hubfs/Blog/Risk-vs-money-scale.jpg) ](https://www.intermap.com/risks-of-hazard-blog/2016/08/the-risk-price-paradox) AM Best and Target Markets (the Program Administrators Association) just put on their annual [webinar](http://bcove.me/4ayc1g3f) exploring the state of program business.  Quickly, here is a primer on what “programs” are. Programs are when a carrier delegates underwriting of a well-defined type of coverage with very specific underwriting guidelines to independent underwriting groups typically known as Managing General Agents (MGAs) or Managing General Underwriters (MGUs). The carrier carries the risk, while the underwriting groups are the distribution network for the carrier. Lloyd’s of London does most of their US business through programs, but other big carriers (AIG, QBE, Zurich are a few that come to mind) have a wide offering of programs. A well designed program is a classic win-win, with the carrier collecting premium without the cost of sales and marketing the insurance products, and underwriters can sell coverages without bearing the risk.  Programs are interesting because they are the crucible in which many coverages are initiated and tested before becoming more broadly offered. The underwriters who bring programs to the market are known for their innovation and the field is full of start-ups. Most programs are built around non-admitted risks that require deep specialized knowledge to underwrite. Flood is a peril that fits well into a program. [Read More](https://www.intermap.com/risks-of-hazard-blog/2016/08/the-risk-price-paradox) 0 Comments [Click here to read/write comments](https://www.intermap.com/risks-of-hazard-blog/2016/08/the-risk-price-paradox#comments-listing) Topics: [InsitePro](https://www.intermap.com/risks-of-hazard-blog/topic/insitepro), [Insurance Underwriting](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting), [Insurance Software](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-software) ## [How to Overcome Cat and Investment Losses - Good Underwriting](https://www.intermap.com/risks-of-hazard-blog/2016/08/how-to-overcome-cat-and-investment-losses-good-underwriting) Posted by [Ivan Maddox](https://www.intermap.com/risks-of-hazard-blog/author/ivan-maddox) on Aug 10, 2016 7:00:00 AM - [Tweet](https://twitter.com/share) [![](https://www.intermap.com/hubfs/Blog/NASA-three-cat-4s.jpg) ](https://www.intermap.com/risks-of-hazard-blog/2016/08/how-to-overcome-cat-and-investment-losses-good-underwriting) Insurers are posting results for the second quarter now, and cat losses are making headlines. There were certainly a lot of claims, with Q2 driving the highest cat losses seen since Sandy in 2012. The One Brief (from Aon) published an excellent synopsis of the losses [here](http://www.theonebrief.com/the-cost-of-catastrophe-assessing-the-impact-of-natural-disasters/) and it makes bleak reading. On the same day as the Aon article, [Travelers published their results](http://www.insurancejournal.com/news/national/2016/07/21/420882.htm). Sure enough, they shared some discouraging news: - Catastrophe losses of $333 million, up from $221 million for the same period last year, driven by wildfires at Fort McMurray in Canada and hail storms in Texas. - Net and operating income of $664 million and $649 million, respectively, declined from the prior year quarter, primarily due to the higher catastrophe losses, higher non-catastrophe weather-related losses and lower net investment income. - It was the smallest quarterly profit since 2012 after superstorm Sandy. [Read More](https://www.intermap.com/risks-of-hazard-blog/2016/08/how-to-overcome-cat-and-investment-losses-good-underwriting) 0 Comments [Click here to read/write comments](https://www.intermap.com/risks-of-hazard-blog/2016/08/how-to-overcome-cat-and-investment-losses-good-underwriting#comments-listing) Topics: [Insurance Underwriting](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting), [Natural Catastrophe](https://www.intermap.com/risks-of-hazard-blog/topic/natural-catastrophe), [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) ## [Good Underwriting is Good for Insurance](https://www.intermap.com/risks-of-hazard-blog/2016/07/good-underwriting-is-good-for-insurance) Posted by [Ivan Maddox](https://www.intermap.com/risks-of-hazard-blog/author/ivan-maddox) on Jul 13, 2016 7:00:00 AM - [Tweet](https://twitter.com/share) [![](https://www.intermap.com/hubfs/images/Flood-Risk.jpg) ](https://www.intermap.com/risks-of-hazard-blog/2016/07/good-underwriting-is-good-for-insurance) While it might seem pretty obvious to most readers that good underwriting is an important part of a healthy insurance industry, it has not always been. When interest rates were high in the past decades, underwriting was the scoop with which insurers piled as much premium as possible into their coffers. With rates of return on capital at historic lows, for a long time now, underwriting is no longer a scoop – it needs to be a finely honed source of profit. In a recent article on AM Best, Pat Gallagher – chairman and president of the eponymous brokerage giant, made this point. Here is the relevant bit: For more than five years he (Mr. Gallagher) said he’s warned about the lack of investment income, and thinks the renewed emphasis on underwriting helps carriers and customers. “From 1986 to 2001 we saw a ton of insurance companies go broke,” said Gallagher, as pricing “went down and down, and then after 9/11 everyone went up 100%. That’s not a good thing.” At first, I thought it was an odd thing to say, and even more odd to publish. It seemed a bit like reading: people eating is good for the restaurant industry. But, I filed it in my ideas folder and kept coming back to it…why? [Read More](https://www.intermap.com/risks-of-hazard-blog/2016/07/good-underwriting-is-good-for-insurance) 0 Comments [Click here to read/write comments](https://www.intermap.com/risks-of-hazard-blog/2016/07/good-underwriting-is-good-for-insurance#comments-listing) Topics: [Floods](https://www.intermap.com/risks-of-hazard-blog/topic/floods), [Flood Insurance](https://www.intermap.com/risks-of-hazard-blog/topic/flood-insurance), [Insurance Underwriting](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting), [Flood Risk](https://www.intermap.com/risks-of-hazard-blog/topic/flood-risk), [Effective Underwriting](https://www.intermap.com/risks-of-hazard-blog/topic/effective-underwriting) [Previous](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting/page/2) [All posts](https://www.intermap.com/risks-of-hazard-blog/all) [Next](https://www.intermap.com/risks-of-hazard-blog/topic/insurance-underwriting/page/4) ## [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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