When underwriting group life insurance, what does the underwriter generally focus on?

In group life insurance underwriting, the underwriter primarily focuses on the group as a whole rather than individual members. This approach is essential because group life insurance is designed to cover a collection of individuals, usually related through employment or association, under a single policy. The underwriter evaluates the characteristics of the group, such as its size, stability, and the demographic information of its members, to assess risks and determine premium rates.

This focus on the group rather than individual details allows underwriters to leverage the law of large numbers, which helps to predict claims more accurately across the overall population. As group policies spread the risk among many members, the underwriting process can be more streamlined, generally requiring less detailed individual medical information than individual life insurance policies. This makes group life insurance more accessible and often more affordable for members, reflecting the underwriting focus on group dynamics rather than personal health assessments or job performances.