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An underwriter reviews a client’s eligibility for services, such as insurance coverage and loans, and determines their potential risks as a client. Underwriters work for insurance companies and financial institutions and can earn between $50,000 and $60,000 per year.
An underwriter is a professional who impartially reviews a client’s eligibility for services. This person reviews a potential client’s application for services such as insurance coverage and loans to determine whether the services should be granted. The two main types of underwriter employment are those with insurance companies and those with financial institutions.
Regardless of industry, an underwriter is tasked with thoroughly reviewing a candidate’s information and determining their potential risks as a client. This assessment must be completely unbiased, even if an underwriter is employed by the company rather than the individual. Based on the information collected and the factors taken into account, an underwriter approves or denies a potential customer and outlines the terms of service.
Insurance underwriters can work in any of several subcategories, including life, health, property and casualty insurance. In life and health insurance, the underwriter analyzes medical history, actuarial studies and health factors in order to determine the risk an individual poses. If the risk is too high, an underwriter denies coverage. If the risk is minimal, he or she determines the premium a client pays and the scope of coverage he or she receives.
The other types of underwriter jobs deal with property and casualty insurance. These policies include homeowners insurance and auto insurance. The underwriter assesses the condition of a commercial or residential property or automobile and offers package coverage. It is important that underwriters in this line of work are familiar with each specific coverage option and how each is most efficiently packaged.
Underwriting jobs in the finance industry often involve borrowing, such as mortgages. Unlike insurance underwriters, consideration of credit history is the most important concern for an underwriter working for a lender. Analyzing an applicant’s payment history against their other debts and examining their credit score is the best way to determine eligibility.
A loan underwriter verifies the borrower’s ability and willingness to repay a loan, as well as its assets and collateral. Together, these elements are indicators of the risk presented to a lender by offering a borrower a line of credit. Underwriter jobs are vital to the finance industry as they allow large institutions to review thousands of applications individually and avoid investing in unreliable clients.
Underwriter jobs typically don’t require a degree or specific course of education. Most insurance and finance companies prefer a bachelor’s degree in finance or business administration. Underwriters can work for a wide range of businesses: insurance companies, credit unions, banks and mortgage lenders. On average, underwriters earn between $50,000 and $60,000 per year.
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