Underwriter Work

Underwriter work relates to the identification of financial eligibility of the clients necessary for different products like the lines of credit or insurance coverages. Underwriters are generally employed in financial organizations such as insurance or bank providers. The main motive behind performing underwriting work is to receive a specific measure of risk as a substitution for a payment or premium required for a financial activity.

An underwriter is a third party who is mainly involved in the evaluation of possible clients to examine their appropriateness for the services provided by the investment house, health insurance organization, and creditor house. The underwriters undergo specialized training programs that assists them to analyze the ability of the organization to provide efficient services to the client. It also helps them to study the financial risks a latent customer can afford towards the organization.

After successful evaluation of the customer's risk factors and collection necessary financial information, the underwriter creates the terms of coverage. They may provide standard credit or coverage that has precise stipulations. The underwriters first examine the presumptive risks involved in the process and then provide the credit or coverage terms.

The underwriter put emphasis on four main elements in their work. They are: the client's collateral; their current assets; their patent willingness to repay the loan; and their capability to refund the loan. With a view to affirm the customer assets , the underwriter scrutinizes the customer's bank accounts, checks whether any large or unusual deposits are clarified, and assesses bank statements up to six months.

Requirements of Underwriter Work

The requirements of underwriter work are as follows:

• Bachelor's degree in Finance or Accounting or Associate degree in Business Law from a recognized college or institution
• Ability to efficiently process a large amount of data and handle electronic correspondence
• Sound knowledge about operating computer systems and various software used by underwriters
• Excellent interacting skills for acquiring effective communication among insurance agents and other personnel related to this field
• Expertise in making quick decisions with a flair in mathematics and accounting
• Proficient analytical and decision making abilities

Job Profiles of Underwriter Work

There are various job profiles that can be listed under underwriter work. However, a few of them are given below:

• Insurance Underwriter: Insurance underwriters are responsible for finding out whether a particular insurance is profitable or not. They also identify whether the insurance can be offered or not. They usually refer to specific financial details of the customer in their work. They play a significant role in the insurance companies in reducing the uncertainties and non-calculated risks with an assurance of profitability

• Medical Underwriter: Medical underwriters are involved in the identification of exclusion policies, coverage, eligibility, and premium rates for the businesses and clients. They do this by evaluating the application records and data related to life insurance and health insurance policies. They take into account the past medical information, vocation, age, and current health condition of the applicant

• Life Underwriter: Life underwriters are professionals who are involved in determining the risk associated with the granting of life related insurances to the business organizations and clients. They assess the financial status, asset value, and other on-going insurances of the clients. They possess good attention to detail and judging abilities

Other job profiles can be mortgage underwriter, commercial underwriter, consumer underwriter, processing underwriter, etc.

Job Prospect of Underwriter Work

Underwriter work is expected to rise in the coming decade due to the need for minimizing the financial risks, fulfilling regulatory requirements, and concentrating more on credit policies for ensuring maximum profit without incurring any losses. As and when there is a growth in the economy rate, employment opportunities for underwriters will increase to satisfy the need for managing the excessive work credit applications.

However, the progress in technology has improved the credit application procedure. Such improvement may slow down the employment rate of underwriting work.