An insurance company’s underwriter trainee position is an entry-level position. An underwriter trainee learns how to assess risk and determine whether the insurance company will accept it. If the risk is deemed acceptable, he or she also learns how to price the risk to the client. An underwriter trainee is also taught how to work with brokers, clients, and other insurance company departments.
An underwriter trainee is usually required to have a license in the field in which he or she specializes. There are two major fields to consider. Property and casualty is the first, and life and health is the second. An underwriter must typically complete a comprehensive course of study and then pass an exam administered a governing body to become licensed.
An underwriter trainee spends the majority of his or her time completing coursework and learning the insurance company’s specific underwriting rules and guidelines. Before they are considered full-fledged underwriters, most trainees spend at least one year, if not two, in a training program. Although some companies expect the underwriter trainee to be licensed before they are hired, they may be allowed to study and take a licensing exam while they are employed.
The underwriter trainee will spend a significant amount of time learning about the insurance company’s specialty market. Many factors influence which risks insurance companies are willing to insure, and the trainee must learn to evaluate those factors and make an informed decision about whether the risk is a good fit for the company. The trainee will also be expected to learn how to bargain with brokers and clients on pricing.
In addition, underwriters are frequently in charge of ensuring that the insurance contract’s terms are followed. Loss-control surveys and premium audits will be taught to the trainee. He or she will have to make decisions about which safety protocols or loss-control recommendations should be implemented, if any at all.
Trainee underwriters must have a strong understanding of technology. Many of the risk-evaluation tools they use are software-based. Word processors, spreadsheets, and presentation software are all required of underwriters. They must also be able to communicate effectively via email, telephone, and traditional written correspondence.
Underwriters must also be meticulous in their work. To assess a risk, they rely heavily on information provided in applications and questionnaires. They must also follow up with brokers and clients to ensure that they have all of the information needed to assess a risk.