An underwriting analyst assesses both individuals and businesses in order to assess the level of risk they pose to lenders and insurers. Using an analyst, especially for large or complex loans and insurance products, can be critical in reducing risk and offering products that are tailored to the customer’s needs. Depending on the employer, a college degree as well as industry experience may be required. Belonging to a professional organization that offers career development opportunities can also be beneficial.
When a client approaches a lender or insurance company, an underwriting analyst can conduct research to determine the level of risk. Examining financial statements, requesting credit history, and weighing other personal factors are all part of this process. Additionally, the overall market can be taken into account. If the industry is struggling, for example, a manufacturer seeking a loan to begin development of a new product may be a poor risk because it may not be able to repay the loan. All of these factors must be considered when determining which products the client may be eligible for.
This could lead to a comprehensive report with recommendations. For the benefit of those reviewing the report, the underwriting analyst can discuss the level of risk and provide some comparisons. Recommendations are usually included, including the type of insurance or loan to offer and the terms. When advising personnel on whether or not to proceed with a service offer, underwriting analysts can take into account a number of factors.
An underwriting analyst can benefit from a thorough understanding of statistics, risk management, and actuarial processes. Individual profiles, market conditions, and industry standards must all be taken into account when a person or company applies for a loan or insurance coverage. Regulatory compliance, such as stipulations limiting loans based on annual income, can also be a source of concern. Standards change on a regular basis, making it critical to stay current with industry practices in order to provide the best services to employers.
A degree in math, business, or accounting may be required to work as an underwriting analyst. After that, you can work in underwriting departments for a few years to gain hands-on experience and knowledge of the industry. Senior positions typically require two years of experience and a bachelor’s degree. Employers may have expectations for their employees’ continuing education. Some organizations may be willing to help with the costs of attending conferences, subscribing to professional publications, and other related career development activities.