Underwriting analysts evaluate individuals and companies to determine risk for lenders and insurers. They examine financial statements, credit history, and market conditions to provide recommendations for loan and insurance products. A college degree and industry experience may be required, and continuing education is often expected.
An underwriting analyst evaluates individuals and companies to determine the degree of risk they present to lenders and insurers. Especially for large or complex loan and insurance products, the use of an analyst can be critical to reducing risk and offering products that are tailored to the client’s needs. Work in this field may require a college degree and industry experience, depending on the employer. It can also help to belong to a professional organization that offers career development opportunities.
When customers approach a lender or insurance company, the underwriting analyst can conduct research to determine the degree of risk presented. This includes examining financial statements, asking for credit history, and evaluating other personal factors. In addition, the general market can be considered. A manufacturer seeking a loan to start new product development may be a low risk if the industry is struggling, for example because it may not be able to repay the loan. All of these issues must be weighed when making decisions about which products the customer may be eligible for.
This can result in a complete and detailed report with recommendations. The underwriting analyst can discuss the level of risk and provide some comparisons for the benefit of those reviewing the report. Recommendations, including the type of insurance or loan to offer and the terms, are usually included. Underwriting analysts can consider a variety of factors when advising staff on whether to proceed with a service offering.
A thorough understanding of statistics, risk management and actuarial processes can be useful to an underwriting analyst. It is necessary to consider the individual profile of a person or business applying for a loan or insurance coverage, along with market conditions and industry standards. Regulatory compliance can also be a concern, such as stipulations that limit borrowing based on annual income. Standards change periodically, making it important to keep up with industry practices to provide the best services to employers.
Someone preparing to become an underwriting analyst might major in math, business, or accounting. This can be followed up with several years in the underwriting departments to gain first-hand industry experience and knowledge. Senior positions usually require at least two years of experience and a degree. Employers may have continuing education expectations for their employees. Some can provide assistance with the costs of attending the conference, subscribing to professional publications, and related career development activities.
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