Insurance underwriters evaluate risks and create policies for individuals and businesses. They collect information about clients’ past and present conditions, compare statistics, and calculate appropriate policy amounts and premiums. Underwriters in different industries assess different risks, and prospective underwriters typically obtain a bachelor’s degree in business administration or accounting. Experienced underwriters can advance their careers to become supervisors or pursue other insurance-related jobs.
Insurance underwriters create insurance policies for individuals and businesses based on a variety of factors. An underwriter determines whether or not to insure a client based on a careful review of past records, objective statistics, and potential risks the client may face. The policies are written in a way that offers the insurance company the greatest protection against loss, while giving the customer the security of knowing that he will be compensated in the event of an unfortunate situation.
Life and health insurance insurers collect information about customers’ past and present living conditions to determine the type of policy they need. An underwriter will carefully review a client’s medical records, investigate their work environment, and consider the needs of their immediate family. Statistics on a person’s age, health status and family history are compared with those of other policyholders. The underwriter calculates an appropriate policy amount and premium which must be paid by the customer.
At property and casualty insurance companies, underwriters assess the risks of damage to property due to natural disasters, fire and theft. When insuring a home or business, an underwriter considers the type, location and condition of the establishment. He or she can investigate the security logs and request an inspection before creating a policy. The insurer must make careful decisions regarding the value of a business or home and the potential amount that the insurance company may be required to pay in the event of an accident.
Underwriters in the auto insurance industry take several precautions before hiring a driver. An underwriter must run exhaustive background checks on an individual to ensure that past driving records are accurate and not tainted by various accidents and citations. He or she considers the type of car to be insured, the area in which it will primarily be driven, and the driver’s experience level. The insurer compares the collected data about the driver and the vehicle with the statistics of similar drivers and creates a new policy accordingly.
Prospective insurance underwriters should typically obtain bachelor’s degrees in business administration, accounting or a related field. Many new underwriters participate in internships or training periods before working independently. Interns assist established insurance underwriters while learning the trade firsthand. Many new subscribers seek additional certification in their specific fields by taking nationally recognized certification exams.
Many experienced underwriters are able to advance their careers. After several years of experience, many professionals become underwriting supervisors or take on other insurance-related jobs in claims they investigate or adjust. Some underwriters advance to esteemed management positions at their companies and others pursue underwriting careers in securities, real estate and investment banking.
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