What Is Meant By Underwriting In Insurance?
                     What Is Meant By 
Underwriting In 
Insurance?
When reading up on health insurance or other forms of 
insurance, you may come across several terms that may confuse 
you. It is important to get clarity on these terms so that you can 
take the right steps when buying coverage. One such term that 
usually confuses many is ‘underwriting’. You may have come 
across this word in your insurance brochure or on an insurance 
company’s website. 
In this article, we will help you understand the meaning of 
underwriting in insurance plans. 
What is underwriting?
Underwriting is a process in which you make a full and honest 
declaration to your insurance provider about your health history. 
This declaration might also include details about your habits (like 
smoking) and your family’s medical history. 
Based on this declaration, the insurer will choose to either accept or 
reject your application for coverage. They will also use your 
underwriting declaration to decide on the terms of your health 
insurance plan.
There are certain types of underwriting in health insurance and other 
forms of coverage. These are full underwriting, Simplified Issuance 
Offer (SIO), and Guaranteed Issuance Offer (GIO). Let’s take a look at 
what each of these mean for you – 
 
Full underwriting
In full underwriting, the insurer decides if they can cover you based on 
the health disclosure you make. If they do agree to offer coverage, this 
coverage may be subjected to certain pre-existing conditions (diseases) 
being excluded from your health insurance plan. You may also face 
loading in your health insurance plan. You might also have to undergo 
a health check-up. 
Simplified Issuance Offer (SIO)
In simplified issuance offer, you simply need to answer a 
question asked by the insurer. If your response fits the 
insurer’s criteria for coverage, you get issued your 
insurance plan. You may find simplified issuance offer in 
cancer insurance plans. 
Guaranteed Issuance Offer (GIO)
In a guaranteed issuance offer, you get the coverage of your 
plan without answering any questions from the insurer. You 
might come across a guaranteed issuance offer when you 
take a regular savings plan that has a death benefit. 
What are pre-existing diseases?
A pre-existing disease is a medical condition that you already 
had when you bought your health insurance (Integrated Shield 
Plan). Diabetes is an example of a common pre-existing disease. 
When it comes to underwriting, remember to be completely 
honest with your insurance provider. Attempting to hide 
information might see your claims getting denied by the insurer. 
Be completely honest and open when applying for coverage. 
Else, you will end up paying for a plan that you won’t be able to 
claim in the future. 
It is advisable to buy health insurance when you are young. This 
is because pre-existing diseases generally crop up as we age; by 
buying health insurance early on, you can beat the clock and end 
up getting coverage for diseases that you don’t already suffer 
from. This kind of foresight will prove immensely helpful later 
on in life. 
We hope that this article has helped improve your 
understanding of underwriting in insurance. 
You may consider speaking to a financial consultant for 
help in finding the best medical insurance in Singapore. 
Good luck!
THANK YOU