Understanding Underwriting & Pre-Assessments: Why They Matter More Than You Might Think

In a recent article, we explored how the insurance process works - and how the right advice makes a real difference. Today, we’re taking a closer look at two essential (but often misunderstood) parts of that process: underwriting and pre-assessments.

If you’re considering new insurance cover - or reviewing an existing policy - these steps can play a big role in getting the right outcome.

What Is Underwriting?

Put simply, underwriting is the insurer’s way of assessing your application. It happens once an adviser has provided you with their recommendations and you're ready to apply for cover.

Insurers use underwriting to determine:

Whether they can offer cover
What terms apply (e.g. standard terms, exclusions, or premium loadings)

They’ll look at your:

Medical history and current health
Lifestyle factors like smoking, alcohol use or exercise
Occupation and any higher-risk activities
Pastimes that might pose additional risk (e.g. motorsports, skydiving, scuba diving)
Financial situation, particularly for larger amounts of cover – to ensure the requested level of protection is justified (this is known as financial underwriting)

Depending on what’s disclosed, the outcome might be straightforward - or it might involve further questions, tests, or reports from your GP. This is a normal part of the process, and an experienced adviser can guide you through it to make things easier.

What Are Pre-Assessments?

Pre-assessments happen before you apply. They’re informal, one-off checks your adviser can run with one or more insurers to get a sense of how they might respond to specific circumstances - such as a past medical condition or a higher-risk occupation.

Pre-assessments can help:

Avoid unnecessary declines
Identify which insurer is likely to offer the best terms
Set realistic expectations from the start

They’re especially useful when reviewing existing cover, considering changes, or applying for more cover - particularly if your health situation has changed, for better or worse.

Pre-assessments aren’t part of your official application and aren’t retained by insurers. They’re simply a smart way to explore your options without making a formal commitment.

When These Steps Matter Most

Underwriting and pre-assessments can be involved in different parts of the insurance journey:

New applications: To secure new or increased cover
Cover reviews: When you’re re-evaluating your needs or seeing if better terms are available
Changes in health or lifestyle: Whether for better or worse, updated information may open up new options

At QA Insurance, we work closely with clients to determine when a pre-assessment is appropriate, and how to structure applications so the underwriting process is as smooth as possible.

The Value of Specialist Support

Underwriting and pre-assessments aren’t just important at the start of your insurance journey - they can also play a key role down the track.

Health and lifestyle circumstances can change, and with that, so can your options.

For example, if a premium loading was originally applied due to a medical condition, an improvement in health might allow that loading to be removed or reduced. In some cases, it may even be worth exploring if better terms are now available through a different insurer.

And without adviser support, many clients underestimate how much cover they actually need. This is often due to:

A limited understanding of living expenses
Not factoring in the long-term impact of a claim
Overlooking the loss of future income due to events like a Total & Permanent Disability (TPD)

That’s why regular reviews matter. A good adviser won’t just help you get cover in place - they’ll also help you keep it relevant and cost-effective over time.

Final Thoughts

Underwriting and pre-assessments might sound like technical steps - but they’re actually critical tools in tailoring cover to real people and real situations.

If you're not sure whether your current cover is still the best fit, or you're thinking about applying for the first time, it’s a good time to revisit your options.

Want to learn more or think it’s time for a review?

Get in touch with the QA Insurance team - no pressure, just practical guidance.

Your QA insurance Team

👉 Get in touch