What exactly does an insurance underwriter actually do? Typical employers hire insurance underwriters for one purpose only – to help them determine if applicants can afford their insurance rates. This is called ‘risk’ and underwriters are tasked with determining if applicants are at risk of not being able to pay their premiums, this is called ‘underwriting’.
Underwriting is a complicated process and the role relies primarily on careful attention to detail and sensible judgment. As such, some basic key skills are necessary in order to be effective at the job, these include the following:
Key Skills: In addition to having excellent judgment and analytical skills, an underwriter must also be able to communicate effectively, both verbally and in writing. Good communication skills are crucial to success and an underwriter will need to be able to communicate with clients and insurers on a number of different levels, both in person and over the phone.
Familiarity: Having a good understanding of insurance policies and laws, the underwriter should also have a good knowledge of their industry. He or she must be familiar with their own industry and the laws regulating it, which may involve a great deal of personal experience. While a good education in a specific field is helpful, however, the underwriter should also be knowledgeable about the underwriting process and be able to work out the ins and outs of this important and complex area.
Business Background: When hiring an underwriter, it is important that a business background is sought. An insurance underwriter has to make business decisions based on his or her understanding of the industry, and he or she should be able to communicate effectively to ensure a smooth working relationship.
Personal Life: It is vital that an underwriter should have a life beyond business and the underwriter should have a strong sense of family life as well. An underwriter must be capable of taking care of personal affairs and should be able to cope with stress and pressure. A successful underwriter will have to be able to take a variety of positions and be flexible enough to deal with both his or her own and clients’ needs. It is important for the underwriter to be able to make quick decisions, as well as being able to follow through on them.
To be effective, an underwriter must be willing to put forth the above list. Although the requirements may be similar for each job, the skills will vary depending on the type of company and type of underwriting. For example, most insurance companies want an underwriter who knows the ins and outs of the underwriting process as well as understanding their market. There are also insurance firms that hire underwriters specifically for financial advice, in which case there are fewer skills required.
In conclusion, it should be clear that the job of the underwriter is crucial to an insurance company and one of the most important career goals. An underwriter’s success depends on his or her knowledge and ability to understand all aspects of the insurance industry and to communicate effectively with his or her clients.
There are many books and articles that can help an insurance underwriter’s portfolio to develop. A good portfolio is essentially a list of projects completed by the underwriter, as well as the number of underwriters with whom he or she had worked previously. This will help in helping the underwriter to make a decision on which projects to pursue further. An underwriter must be able to demonstrate his or her potential in every area of the insurance business to ensure that they can adequately serve their clients.
The underwriter’s portfolio should be well designed, taken care of, and kept updated, especially when the underwriter is new to the field. This will allow the underwriter to prove his or her worth to future employers. The portfolio should include photographs, videos, resumes, and a detailed explanation of the tasks performed.
Many potential clients will ask to see examples of these materials. If an underwriter is hired for a position and does not show these materials during the interview process, then it is time to contact the prospective employer to inquire about these documents.
Once you have determined whether or not you want to hire an insurance underwriter, you will need to select someone that has the qualities listed above. If you know your requirements in an outline, this will help you narrow down the field of qualified candidates.