A Firm Footing for Small Commercial Underwriting

Accurate classification is foundational to underwriting efficiently and profitably.

North American Industry Classification System (NAICS) codes are a crucial element in establishing a solid foundation for successful underwriting in small commercial insurance. NAICS codes offer a detailed picture of a business's operations, enabling insurers to identify and assess inherent risks with precision. With a clear understanding of the risk profile, insurers can make informed decisions on policy coverage and pricing that best suit the specific needs of the business.

Accurate and precise classification can be a challenge, exposing insurers to:

• Unintended Risk Exposure: Insurers may unknowingly take on risks exceeding their appetite.
• Pricing Discrepancies: Underpricing can lead to premium leakage while overpricing can deter desirable business.

Learn how to overcome these challenges and achieve accurate classification to create a strong foundation for profitable and sustainable small commercial insurance programs.