An underwriter is a person or company who assumes responsibility for a potential loss, such as an insurance claim. Most managers, including underwriting managers, are supervisors. They make sure that an insurance company’s underwriters follow the company’s rules for accepting such risk in order to keep the company profitable. They may also assist in the development and implementation of the company’s underwriting rules. Underwriting managers are frequently asked to assist in the development of company products and pricing.
Underwriting managers are in charge of supervising underwriters, trainees, and account managers. They delegate work and ensure that projects and assignments are completed on time. They are frequently in charge of hiring team members and may also be involved in their training.
Another task assigned to underwriting managers is to establish effective relationships with external clients, such as vendors and brokers, as well as internal clients, such as salespeople and the marketing department. They’re frequently called on to help a broker or salesperson close a deal, negotiate terms or pricing, or explain requirements. They use excellent interpersonal skills to strike a balance between the goals of various parties and the company’s interests.
One of the underwriting manager’s main concerns is the profitability of a book of business. The amount of premium collected versus the amount of claims paid out determines profitability in large part. He or she assists in establishing risk acceptance guidelines and determining the premium required to accept a risk.
The underwriting manager also has an impact on profitability requiring the client to follow certain safety guidelines or loss-control measures. To keep track of these factors, he or she will set up a schedule of loss-control surveys and premium audits. Loss-control surveys assist the underwriting manager in identifying potential risks and the measures that can be taken to mitigate or eliminate them. Premium audits help determine whether the risk was properly rated and, if so, what adjustments to the premium are required.
The underwriting manager is also in charge of producing reports that track profitability, exposure, claims experience, and other metrics. Upper management, the underwriting manager’s team, and brokers are frequently given access to these reports. Many businesses make summaries of these reports available to the public in order to build trust and earn confidence.
In most cases, an underwriting manager has the final say on whether or not to accept a risk that does not follow the company’s underwriting guidelines to the letter. To cement a relationship with a broker who has a large book of business with the company, the underwriting manager may agree to accept a risk outside of the guidelines, or to obtain other, more profitable lines of coverage from the client. The underwriting manager is able to make judgment calls about whether to accept a risk based on a deep understanding of the company’s situation and goals, which others in the company may not be qualified to make.