Insurance underwriters review and evaluate applications for insurance to
determine risks, premiums and the extent of coverage. They are employed by
insurance companies.
In this job, you provide advice to and answer questions
from clients, insurance agents, consultants and other company personnel. You
review new or renewed applications for individual or group coverage of
automobiles, fire, liability, life, health, property, marine property, or
aircraft. You evaluate these applications to determine the degree of risk
involved and then set the premium in proportion to the amount of coverage
requested. You also specify any other conditions in the contract by reviewing
medical reports, rate tables and other reference materials.
If you are just
starting out as a junior underwriter, you are assigned low rsik cases. With
experience, you graduate to more complex and challenging cases. As you gain more
experience, the amount of liability you can incur on behalf of your company
increases. As a senior underwriter, you approve the sale of insurance policies
and ensure that they comply with all the relevant regulations. You also make
recommendations for the design of individual or group insurance plans.
You can eventually move up into an administrative position where you manage
the activities of other underwriters. Insurance underwriters are paid salaries.
A few may be unionized but generally most are not.
This job will appeal to
you if you enjoy math, if you like asking questions and if you are willing to
dig for answers. The best insurance underwriters are thorough, analytical,
patient and decisive.
Insurance underwriting contains elements of both
science and art. On the one hand, it is very technical with its own specialized
knowledge and mathematical tools. On the other hand, you need good judgement to
apply these tools. You also need extensive knowledge relating to the area you
are insuring, whether that involves personal medical histories or the details of
a business.
You need strong study skills to work with all of the information
related to particular applications, and to improve your professional
capabilities. You also need good communication skills since you must justify
your point of view and explain your assessment of the risk involved. In
addition, you need good negotiation skills in order to defend what you propose
and come up with alternatives if the customer is not happy.
Insurance
underwriting can be stressful. You may dal with hundreds of different insurance
agents and there may be days when you need extraordinary patience.