Which factor influences the premium pricing in underwriting?

The factor that most significantly influences premium pricing in underwriting is a policyholder's health and lifestyle. Underwriters assess the risk associated with insuring an individual based on various health-related metrics such as pre-existing medical conditions, family medical history, smoking status, and overall lifestyle choices (such as exercise, diet, and recreational activities).

A policyholder in excellent health who leads a healthy lifestyle will typically be deemed lower risk, which would result in lower premium costs. Conversely, individuals with health issues or high-risk lifestyles (such as heavy smoking or dangerous hobbies) are assessed as higher risk and can expect to pay higher premiums as a reflection of that risk.

While other factors, such as income, agent commissions, and the insurance company's location, may play a role in the broader context of life insurance, they do not have the direct and significant impact on premium pricing driven by underwriting that health and lifestyle factors do. Underwriters are primarily concerned with the likelihood of a claim being made and the potential costs associated, which are directly informed by an individual's health and lifestyle choices.