Retrospective underwriting can be a powerful marketing strategy. It has been used in the past with good success – write new business with scant regard of traditional underwriting parameters. In nine months you know what your picked up. At 12 months you run off the dogs and keep the rest.
Years ago when employed by a BUCA, management decided it was time to increase market share in Texas by 2.5%. “You will be pleased to know new market rates are going to be super competitive in the next two quarters. Write as much as you can!” was C-suites message.
We wrote everything that moved. When renewal time came the dogs were let go and the profitable groups were kept. The company achieved it’s goal.