Insurance Underwriters is a global career option. Insurance companies protect organizations as well as individuals from financial loss every year. These risks may include property damage, car accident, illness, and other incidences.
Job Prospects
An underwriter has to determine the terms under which insurance is provided. They need to calculate the risk of loss from policyholders, determine the accurate premium, and write policies that cover this risk. An insurance organization can lose business to competitors if an underwriter evaluates risks too conventionally or too liberally.
With the help of computer technology, an underwriter assesses information in insurance applications to decide whether a risk is tolerable and not result into a loss. Insurance applications are adjunct with reports from studies, loss control representatives, reports from data vendors, and medical reports. Subsequently, an underwriter determines whether to issue the policy and decides the accurate premium to charge.
In determining the above things, an underwriter has to consider a spectrum of different factors about the applicant. For instance, an underwriter working with health insurance may think about family history, age, and current health while an underwriter who is working for a property-casualty insurance firm has to analyze the causes of loss.
Thus, underwriters build up the main link between the insurance agent and the insurance carrier. Occasionally, underwriters accompany sales agents to prepare for presentations to potential clients.
Technology has immense value in the job of underwriters. Underwriters work using computer applications, 'smart system' to administer risk more accurately and efficiently. This 'smart systems' evaluate and rate insurance applications, denial of the risk, recommend acceptance, and regulate the premium rate with reference to the risk.
The 'smart system' facilitates underwriters to make accurate decisions and protect from excessive loss. The emergence of internet has minimized the workload of underwriters. Some insurance carriers' computer systems are now connected to many databases on the internet, which allow direct access to information like driving records. This access lessens the amount of paperwork and time required for an underwriter to execute a risk evaluation.
Even though there are many potential lines of insurance to work, many underwriters specialize in five major categories including health, life, property, mortgage, and casualty. Health and life insurance underwriters have an opportunity to specialize in individual or group policies.
Work Environment
Generally, underwriters work in offices that are highly comfortable and spacious. They do not need to do physical activity. Some underwriters work in a regional branch office or company headquarters. However, they participate in meetings away from home.
Marine and construction underwriters have to travel to evaluate work sites and inspect risks. Usually, underwriters work for 40 hours a week. However, some of the underwriters need to work on weekends as well.
Educational Qualification
There is no specific educational qualification requirement for underwriters, however, employers prefer candidates possessing bachelor's degree. Candidates with good computer knowledge and insurance related experience are preferred. After completing a bachelor's degree, candidates start their career as trainee underwriters.
Some of the large insurance companies prefer graduates who have completed a degree in finance or business administration with experience or courses in accounting. Nonetheless, candidates holding a bachelor's degree in any discipline and those who have completed courses in accounting and business law are eligible to apply for the post of underwriters.
Candidates aspiring to become underwriters need to have ample knowledge of computer applications. Some organizations prefer to employ candidates who have experience in the field of insurance or underwriting. An underwriter has to deal with the followings.