What Is an Underwriter for an Insurance Company?
The concept of insurance is an assessment of risk. Insurance companies use data and statistics to determine pricing for their policies based on loss trends. An underwriter's job is to calculate and analyze losses and help determine pricing and guidelines for his company and its policyholders.
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Job Function
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Underwriters use databases and statistics from past claims to determine proper policy rates, and calculate the probability of future losses based on risk characteristics.
Training
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Employment usually begins with a work-study or internship as an assistant underwriter, assessing information and making decisions under the supervision of an experienced underwriter. After a time, the employee will usually obtain a license for the line of business he underwrites; an underwriter for property insurance, for example, would obtain a Property and Casualty License.
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Qualities
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An underwriter must be a detail-oriented individual who enjoys analyzing information. Underwriters must be able to use sound judgment and make the right decision regarding risk trends. Excellent oral and written communication skills are necessary, as well, since an underwriter must be able to back up his decisions with solid facts.
Future Growth
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Demand for underwriters is expected to grow in the future. As long as businesses and individuals need insurance to protect their assets, there will always be a job available determining changing risk trends and calculating appropriate premiums.
Salary
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An underwriter's salary in the United States can range from $35,000 to $90,000 a year. Annual income is based on any degrees or professional licenses the underwriter has earned and years of experience in an underwriting role.
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References
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