An insurance company may lose business to competitors if the underwriter appraises risks too conservatively or it may have to pay more claims if the underwriting actions are too liberal. The increased complexity of insurance plans and attention to the “bottom line” is changing the nature of underwriting. Most underwriters specialize in one of three major categories of insurance—life health or property and casualty. Underwriters then must decide whether to issue the policy and the appropriate premium to charge. In the past insurance agents acting as underwriters particularly in the life and health fields could accept or reject applications. Underwriters use computer applications called “smart systems” to manage risks more efficiently and accurately.