Career as an Underwriter

Underwriters are risk management personnel whose job it is to ensure that the risk undertaken by a certain activity--such as lending or providing insurance--doesn't outweigh the potential gains. An underwriter is responsible for watching price trends and communicating with other personnel, such as actuaries, who are are responsible for gathering data about risk. Underwriters are often employed by banks, brokerage firms and insurance companies.

Function

Actuaries are personnel that decide which actions should be undertaken in the finance and insurance industry. When an application is filled out--either for a loan or for an insurance contract--the underwriter ultimately determines whether the application is approved.

Geography

Underwriters work everywhere in the world. Wherever there is a need for risk management, underwriters work to ensure that companies don't undertake unnecessary risk. Underwriters seldom work from home, since their work often involves sensitive information.

Importance

Without underwriters, insurance companies and banks wouldn't be able to lend money or insure clients. Because many banks and insurance companies operate with only a small margin or profit, it's important to minimize risk wherever possible. Underwriters manage risk to ensure that companies remain profitable.

Misconceptions

Underwriters are often seen as the cold, unfeeling side of the finance industry. In their line of work, it's often necessary to decline applications due to unsuitability. Many people don't understand that it's a completely objective process, and there is no personal animus intended.

Benefits

Everyone can see the benefits of using underwriters in the finance industry. Without the analysis and judgment exhibited by the underwriters, insurance prices and interest rates would be negatively impacted.