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Lol why do you say so? At an insurance company UW are literally both the risk managers and the production drivers. They bring in the money and ensure its profitable. What kind of insurance company is it? How much is a lot?
But do they ensure it’s profitable. Half the Lloyds market doesn’t make an underwriting profit and relies on investment income. Ridic
Underwriting is a market. If you exclusively price to risk, you will throw away potential income when the market is hard (i.e. everyone is charging more for the same risk), and lose share - not sell as much insurance - when the market is soft (i.e. when everyone is losing on underwriting). For many insurers, a profitable year is defined by the returns on the invested premium, while you expect to land Combined Operating Ratio somewhere between 90 and 110. Your insurance business makes plenty of money if you successfully invest a lot of premium which you are 'technically' losing money on in underwriting. Compared to selling no policies because the market is soft but you refuse to write at a loss. Hence 'you can't invest none premium'.
Not all lol