Insurance Underwriters : Introduction

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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.