Darren Lee: Underwriting for clients engaged in hazardous pursuits

For advisers working with high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients, protection planning is rarely straightforward.

One of the most common – and often underestimated – complications arises when clients engage in hazardous pursuits.

From private aviation and offshore sailing to high-altitude mountaineering or motorsport, these activities can significantly influence underwriting outcomes.

Yet the real challenge isn’t simply identifying the risk. It is navigating how insurers interpret it and ensuring clients receive terms that are both fair and sustainable.

This is where in-house underwriting expertise becomes critical.

Many mainstream protection journeys rely on standardised underwriting processes.

While efficient, they can struggle to accommodate the nuance required for presenting complex risk profiles. Hazardous pursuits are often initially assessed using rigid categories and processes, with limited scope for context.

For example, a client who ‘flies’ could be anything from a commercial airline passenger to a private helicopter pilot logging hundreds of hours annually.

A key benefit of specialist underwriting is the ability to translate complex lifestyles into terms insurers can assess effectively

Similarly, ‘diving’ might range from occasional organised recreational holiday dives to technical deep-sea expeditions.

Without detailed understanding and presentation, insurers may not offer the best terms possible or even decline to offer insurance.

In-house underwriting allows for a far more granular approach. By engaging directly with the adviser and, where appropriate, the client, underwriters can build a clearer, more accurate picture of the risk.

This often leads to more proportionate outcomes and avoids unnecessary loading.

A key benefit of specialist underwriting is the ability to translate complex lifestyles into terms insurers can assess effectively.

For HNW and UHNW clients, even small differences in underwriting outcomes can have significant financial implications

Advisers may understand their client’s activities well, but articulating those risks in a way that aligns with underwriting criteria isn’t always straightforward, and key mitigating factors and context can easily be overlooked.

Experienced underwriters can bridge this gap. They know which details matter most to insurers – frequency, location, qualifications, safety measures and experience levels.

For HNW and UHNW clients, where sums assured are typically substantial, even small differences in underwriting outcomes can have significant financial implications.

Not all insurers view hazardous activities in the same way. Some take a more flexible stance, particularly when risks are well-managed or supported by strong evidence. Others may adopt a more cautious approach.

Protection Roundtable: Protect and provide value

An in-house underwriting team with whole-of-market access can identify which insurers are most aligned with a particular risk profile.

Rather than relying on a single route to market, they can approach multiple providers, often on a pre-sale or indicative basis, to test appetite before an application is made.

This reduces the risk of adverse underwriting history, which is an important consideration for clients who may need to disclose previous declines or loadings.

One of the most valuable roles of underwriting support is setting realistic expectations from the outset. Clients involved in hazardous pursuits may not fully appreciate how their activities affect insurability.

Early engagement allows advisers to have informed, transparent conversations about potential outcomes.

Ultimately, specialist underwriting support enhances adviser confidence when dealing with complex cases

Whether that involves additional premiums, exclusions or alternative structuring solutions, clients are better prepared and less likely to be surprised at a later stage.

In some cases, the answer isn’t simply finding the ‘right’ insurer but designing the right solution. This could involve splitting cover across multiple providers, adjusting policy structures or exploring different product types.

In-house underwriters can work alongside advisers to develop strategies that balance risk, cost and client objectives. For business protection cases, where multiple lives and roles may be involved, this collaborative approach is especially valuable.

Ultimately, specialist underwriting support enhances adviser confidence when dealing with complex cases. Rather than navigating uncertain territory alone, advisers have access to expertise that can guide decision-making and strengthen client outcomes.

Darren Lee is head of underwriting at John Lamb Hill Oldridge