What do Insurance Underwriters do?

Insurance underwriters create policies for individuals and businesses based on a variety of variables. An underwriter decides whether or not to insure a client based on a thorough examination of the client’s previous records, objective statistics, and potential risks. Policies are written in such a way that they provide the insurance company with the most protection against loss while also providing the client with the assurance that he or she will be compensated in the event of an unfortunate circumstance.

Underwriters for life and health insurance gather information about clients’ past and current living situations to determine the types of policies they require. An underwriter will look over a client’s medical records, investigate his or her workplace, and consider the needs of his or her immediate family. The age, health status, and family history of a person are compared to those of other policyholders. The underwriter determines the appropriate policy amount and premium that the client must pay.

Underwriters assess the risks of property damage due to natural disasters, fires, and thefts in property and casualty insurance companies. An underwriter considers the type, location, and condition of a home or business when insuring it. Before drafting a policy, he or she might look into safety records and order an inspection. The underwriter must make careful decisions about the value of a business or home, as well as the potential amount the insurance company may be forced to pay if an accident occurs.

Before insuring a driver, underwriters in the automobile insurance industry take several precautions. An underwriter must conduct extensive background checks on a person to ensure that their previous driving records are accurate and free of multiple accidents and citations. He or she considers the type of vehicle to be insured, the area where it will be used most frequently, and the driver’s level of experience. The underwriter compares the driver’s and vehicle’s information to statistics for similar drivers and creates a new policy as a result.

Underwriters who want to work in insurance typically need a bachelor’s degree in business administration, accounting, or a related field. Before working independently, many new underwriters participate in internships or training programs. Trainees work alongside experienced insurance underwriters while learning the ropes. Many new underwriters take nationally recognized certifying exams to gain additional certification in their specific fields.

Many seasoned insurance underwriters have the opportunity to advance in their careers. Many professionals progress to underwriting supervisory positions or other insurance-related jobs such as claims investigation or adjusting after a few years of experience. Some underwriters progress to senior management positions within their companies, while others pursue careers in securities, real estate, and investment banking underwriting.