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Underwriting Philosophy

Our prime and most basic objective as an underwriting agency is to make an underwriting profit for the underwriter, by managing premiums vs risk and keeping it optimum between the two (essentially if we make a loss for the Underwriter, then we’re out of business).  

Which means that our key underwriting philosophy is to set the rating at a level which means the underwriter can consistently pay claims (over many years) without making a loss.

The good news for TLC Insurance (and our brokers and clients) is that over 20 years, and more particularly since 2010 (under the Lloyd’s model), we have achieved a consistent profit for the underwriter.

We have achieved this through:
  • Firstly, finding the break-even loss ratio (established over many years of specialist underwriting and knowing our business really well)
  • Then, ensuring that we achieve regular and incremental increases to stay ahead of increasing costs.

This approach differs from many of our competitors who traditionally cut prices to buy market share, then radically increase pricing 'in a bad year' to offset major underwriting losses.

When the rest of the market operates with a similar reactive up and down rating philosophy, this causes the market to swing (in some cases quite excessively) and that is why premiums start to yo-yo.

TLC Insurance’s philosophy is completely different - and dependent on our own performance alone - and as such through accurate and consistent underwriting of our niche market products, we are able to offer clients consistent ratings year in and year out, irrespective of the rest of the market.

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