Underwriting managers supervise and ensure underwriters follow company rules to minimize risk and maintain profitability. They also develop products and pricing, build relationships with customers, and generate reports. They have the final say on accepting non-guideline risks.
An underwriter is a person or company who assumes responsibility for a potential loss, such as an insurance policy claim. Underwriting managers, like most managers, are supervisors. They ensure that an insurance company’s underwriters follow the company’s rules for accepting that risk, in hopes of minimizing it and keeping the company profitable. They can also help shape the company’s underwriting rules and ensure those rules are effective. Subscription managers are often asked to help develop products and pricing for the company.
Underwriting managers play an active supervisory role towards other underwriters, interns and account managers. They assign work and ensure that projects and assignments are completed according to schedule. They are usually responsible for hiring team members and can play an important role in their training.
Building effective relationships with external customers – including vendors and brokers – and internal customers – including salespeople and the marketing department – is another task assigned to underwriting managers. They are often called on to help a broker or sales force close a sale, negotiate terms or prices, or explain requirements. They use excellent interpersonal skills to balance the objectives of the various parties with the interests of the company.
Profitability of a book of business is a major focus of the underwriting manager. Profitability is largely determined by the amount of premium charged versus the amount of claims paid. He or she helps establish guidelines for accepting risk and determines the premium required to accept a risk.
The underwriting manager also influences profitability by requiring the client to comply with certain security standards or loss control measures. He or she will establish a schedule of loss control surveys and premium audits to help monitor these factors. Loss control surveys help the underwriting manager determine potential hazards and measures that can be implemented to reduce or avoid them. Premium audits help determine whether the risk has been classified correctly and what adjustments, if any, need to be made to the premium.
In addition, the underwriting manager is responsible for generating reports that measure profitability, exposure, claims experience and other metrics. These reports are generally shared with senior management, the underwriting manager’s team, and brokers. Many companies publish summaries of these reports to the public to help build trust and gain trust.
An underwriting manager typically has the final say on accepting a risk that does not fully adhere to the company’s underwriting guidelines. The underwriting manager may agree to accept a non-guideline risk to build a relationship with a broker who has a large backlog of business with the firm or to obtain other more profitable lines of coverage from the client. Based on a high level of understanding of the company’s situation and objectives, the underwriting manager is able to make judgments that others in the company may not be qualified to make about accepting a risk.
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