What is the job profile of an Underwriter?

What is the job profile of an Underwriter?

Underwriters will be required as long as insurance is considered as a necessity for people in modern times. The term “Underwrite” means that the insurance company accepts liability for possible losses by clients. Basically, underwriters calculate the financial risk of insuring a business or an entity, for prospective and current clients. There are various lines of insurance business such as auto, home, commercial and farm insurance, individual, life and group life and health that an Underwriter can take up. Renewal of insurance coverage for both individuals and companies is one of the applications of an Underwriter. It involves identifying, evaluating, and estimating the level of risk involved, establishing premiums matched to the risk and recommending coverage. Underwriters play an important role in our success and financial capability.

They measure and evaluate the risk involved and the premium that needs to be charged to insure that risk, in simple words, they take care of risk management. They review the insurance applications and decide their fate. An underwriter evaluates an applicant’s exposure to risk and decides whether an applicant meets an insurer’s standards. They review the insurance policies and coverage of the insured entity to determine if the policy holder has the right amount of coverage, or are they a risk to the insurance company. An underwriter may also be involved in setting prices for insurance applicants and determining potential clients of a finance company.