What Are the Typical Duties of an Insurance Underwriter?


Quick Answer

The typical duties of an insurance underwriter include reviewing incoming policies from brokers to determine if the company should accept the accompanying risk of the plan, setting premium rates for new and existing policy holders and reviewing customer data to assess potential risk. Underwriters also monitor industry trends and developments to help the insurance company adjust policies to offer the best financial services to clients.

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Full Answer

Insurance underwriting involves analyzing various types and amounts of data to determine the best course of action for the insurance company in regard to maintaining and extending coverage policies. An underwriter typically focuses on a specific type of insurance, such as health or homeowner's insurance, to develop a strong understanding of the market and the various influencing factors. When the company receives a request for the creation of a new policy, which typically arrives from a broker working with the party that is to receive the coverage, it is the underwriter's responsibility to determine if the company should approve it.

The process of underwriting involves analyzing specific aspects of the policy recipient to determine the likelihood that the company may need to pay out on the plan. For example, a health insurance underwriter checks the medical records of the applicant for preexistent conditions and factors in age, lifestyle and occupational hazards to determine the risk of the policy. The job also involves setting premiums, which is the amount the policy holder pays monthly or annually to receive the coverage.

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