In terms of quality underwriting, what are the basic guidelines of company underwriting?

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In terms of quality underwriting, loss and expense ratios are the basic guidelines to company underwriting. Loss ratios use a variety of sources to divide the losses by the total premiums paid. These sources include: use of accounts, lines of insurance, all of the accounts by each producer or agency (commonly referred to as "book of business"), and all of the insurers' written business. Expense ratios look at the operating expenses of the insurer and the total premiums being paid. The combination of these two items assists in determining profit or loss in underwriting. Once profits and losses are determined, business can be evaluated for renewing accounts, continuing agency contracts, and any changes or adjustments needed for the underwriting standards of the business.

In Terms of Quality Underwriting, What Are the Basic Guidelines