What does Cash Flow Underwriting mean? Read on to discover the definition & meaning of the term Cash Flow Underwriting - to help you better understand the language used in insurance policies.
Cash Flow Underwriting
Rating a risk based on an expectation that any incurred losses will pay out slowly providing for the insurer to earn investment income on reserves adequate to cover any rate deficiency. Common during "soft" markets when interest rates are high and insurers are competing for market share.
We hope the you have a better understanding of the meaning of Cash Flow Underwriting.