What Does a Property Underwriter Do?
Working in the insurance industry, property underwriters assess the risk of insuring either commercial or personal property, such as a home, vehicle or boat. Property underwriters, sometimes called property-casualty underwriters, determine whether the individual or business is a good risk based on factors such as previous claims and type of property. Once an approval for insurance is granted, the property underwriter then determines the appropriate insurance premium--the price the insured will pay--for the insurance policy.
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Analyzing Data
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Property underwriters analyze information using computers and advanced computer software to determine whether the amount of risk involved in insuring an individual or business is financially responsible. Applications for insurance are submitted to the underwriter with reports from various departments within the insurance company. All of the data must be transferred into the risk assessment software and then further reviewed to make a final determination.
Off-Site Inspections
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In some cases, the property underwriter is called upon to visit an off-site location, such as a home or commercial building. As part of the analysis of the property, the underwriter may need to complete a visual inspection of a building for signs of damage, instability or other potential problems that may result in an insurance claim. The information gathered from the site visit is then combined with other related information and taken into consideration when determining whether to issue an insurance policy.
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An Example
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A property underwriter receives information from a homeowner seeking new insurance coverage. The potential customer has three past fire-related insurance claims, all of which resulted from improperly functioning smoke alarms. The underwriter decides to visit the home to determine if property fire safety measures have been taken, such as working smoke detectors and fire extinguishers in the kitchen and near other heat sources. After discovering the smoke alarms are not functioning and not finding fire extinguishers, he determines the risk is not worth it. The application is denied.
Training and Education
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Entry-level positions require a bachelor's degree in business administration or finance, however, most any degree with experience is accepted. Classes taken should focus on accounting, business law and statistics. Advanced computer skills and familiarity with a variety of computer software provides an advantage as well.
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References
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