Insurance Underwriter is a professional who reviews and evaluates the insurance cover required by his client. Whenever someone applies for insurance and submits the information the work of an Insurance Underwriter comes into play. He is the person who performs a risk analysis to determine whether it is in the company’s best interest to issue a policy. In fact, the decision-making process on whether to approve insurance policies is handled by an Insurance underwriter.
To accomplish his work in a better manner the Insurance Underwriter should be hardworking and dedicated. Insurance Underwriter Career demands intensive foresight and in-depth knowledge of the field, one is working in. For this, one should have the capacity to work hard with commitment, open mind and honesty. Thus to do his work most effectively he requires special training which can be acquired by doing the required courses.
Insurance Underwriter Eligibility
Educational Qualification
The aspiring candidate should have passed in Senior Secondary Examination (10+2) or equivalent recognized examination in any stream.
Age Limites
There is no restriction with regard to the age of the candidate.
Insurance Underwriter Required Skills
- Aspiring Insurance Underwriter should have excellent communication skills along with a strong background in finance as they have to use actuarial data to estimate the possibility and amount of payout over the life of the policy.
- Working knowledge of computer is a must for an Insurance Underwriter as he has to take the help of various program to accomplish his work in an effective manner. They must also have knowledge of administrative and clerical procedures and systems such as word processing, managing files and records, stenography and transcription, designing forms.
- Good command on English or any other working knowledge is needed for writing business correspondence.
- They should have skills like sales and marketing which include methods for showing, promoting, and selling their services.
- They must have knowledge of economic and accounting principles and practices, the financial markets, banking and the analysis and reporting of financial data.
How to become an Insurance Underwriter?
To be an Insurance Underwriter one has to follow the given steps:
Step 1
After doing +2 preferably in commerce, actuarial or finance subjects the aspiring candidates go for a Bachelor’s degree in the related field. Some of the Bachelor’s of Advance Diploma course in insurance are:
- Advanced Diploma Course in Insurance Management
- B.B.A. (Banking and Insurance)
- B.B.A. Insurance Management
- B.Com. (Insurance Management)
- Bachelor of Insurance and Risk Management (BIRM)
Having a specialization in property or mortgage underwriting, an additional course in finance, actuarial science, accounts or computer applications is an added advantage. However insurance in a certain area such a technical, industrial, marine and other specific fields may require persons with subject experts with a training in finance and insurance.
For health and life insurance underwriting, a degree in medical or paramedical can be of great help as health and life insurance underwriters have to assess the medical risk along with financial risk involved with an individual.
Step 2
After completion of a Bachelor’s Degree in the above field or any of the related field, the aspiring candidates can join some Insurance company or go for a Master’s degree in the insurance field. Some of the Master’s degree courses in insurance field are:
- M.B.A. (Insurance and Risk Management)
- M.Sc. (Insurance Business)
- Master in Insurance Business (MIB)
Step 3
Once equipped with a Master’s degree in the related field the aspiring candidates can look for a challenging job in the private or public sector.
Insurance Underwriter Job Description
Insurance Underwriter job descriptions differ depending upon the type of insurance because of the types of clients the underwriter will work with and the risks that are assessed. Generally, an Insurance Underwriter’s job includes:
- Risk Management ie they measure risk exposure and determine the premier to be charged from the client.
- Screen and Approve Applications i.e to review the applications received and screen them based on the policies of the company they are working for. Thereafter the approval is given to the applications.
- Analyze Risk, Insurance Underwriter analyse the risks associated with applications that meet the minimum criteria. Like health insurance underwriters consider medical risks such as a family history of some deadly diseases like that of heart ailment or cancer its.
- Write Policies, Insurance underwriters write insurance policies explaining client coverage and premiums, while minimizing potential losses for the Insurance Company.
In nutshell, Insurance Underwriter operates as the main link between an insurance company and insurance agents, often working along with the insurance agent and as the agents trusted advisor.
Insurance Underwriter Career Prospects
With the privatization and globalization of the Insurance sector and cutthroat competition in the field, there is a lot of scope for these professions. They can work in insurance agencies or for organizations that offer insurance services to insurance companies and policyholders. They can also get work in agencies owned and operated by banks, mortgage companies and real estate firms. After getting requisite experience as Insurance underwriter they get promoted to the post of senior insurance underwriter or underwriting manager.
With the growth of the insurance sector and the entry of multi-national insurance companies, there is a good scope for insurance underwriters.
Insurance Underwriter Salary
As far as Insurance Underwriter Salary is concerned, it depends upon their own efforts; it can be anything from a few thousand to start with to lakhs after a few years of hard work and sincere efforts. Graduates working in the areas can have an initial salary ranging from Rs.25,000 to Rs.30,000 per month.
