Insurance Underwriters : Introduction
As long as Insurance is considered a necessity for people and
business, there will be scope for underwriters. To 'underwrite' means to
accept liability for possible losses by clients. Underwriters calculate
the financial risk of insuring a business or an entity, for prospective
and current clients. Underwriters are active in different lines of
insurance business, such as auto, home, commercial and farm insurance,
individual, life and group life and health.
Underwriters review new or renew applications for insurance coverage,
both for individuals and companies. Underwriting involves identifying,
evaluating, and estimating the level of risk involved, establishing
premiums matched to the risk and recommending coverage. Underwriters are
integral to our long-term success and financial viability.
Underwriters measure risk exposure and determine the premium that
needs to be charged to insure that risk. They take care of risk
management. It is the underwriter who reviews the insurance applications
and decides whether they should be accepted or rejected. Underwriters
review insurance policies and coverage to determine if policyholders
have the right amount of coverage, or if they should be insured with the
company at all. An underwriter evaluates an applicant's exposure
to risk and decides whether an applicant meets an insurer's standards.
An underwriter may also become involved in setting prices for insurance
applicants. An underwriter is a person who evaluates potential clients
of a finance company or a bank. He assesses the fitness of an individual
for the insurance services provided by an insurance firm.
Persons with excellent communication and computer skills along with a
strong background in finance will have the best opportunities for
employment in this field. Work as an underwriter differs depending on
the type of insurance, as the types of clients the underwriter works
with and the risks that are assessed will be different. The most
important underwriting skills are learned on the job. As such, many
underwriters begin their careers as trainees or assistant underwriters.
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