Most firms prefer to hire applicants with a bachelor’s degree. They also may specialize by the type of policy, such as for insuring automobiles, homes, or pets. Within the broad field of property and casualty, underwriters may specialize in commercial (business) insurance or personal insurance. For someone applying for car insurance (a form of property and casualty insurance), underwriters consider the person’s driving record. For example, for someone seeking life insurance, underwriters consider the person’s age and financial history. Although the job duties in each field are similar, the criteria that underwriters use vary. Most insurance underwriters specialize in one of three broad fields: health, life, and property and casualty. But if they don’t approve enough applications, the company will not make enough money from premiums. If underwriters allow too much risk, the insurance company will pay out too many claims. Insurance underwriters must achieve a balance between risky and cautious decisions.
If relevant, the underwriter would then consider how far in the past the bankruptcy occurred and how the applicant’s financial situation has changed since the bankruptcy filing. For example, if an applicant reports a previous bankruptcy, the underwriter must determine whether that information is relevant to the policy being applied for.
Underwriters analyze the risk factors appearing on an application. For specific and complex insurance types, such as workers’ compensation, underwriters need to rely more on analytical insight. If a decision is difficult, they may consult additional sources, such as medical documents and credit scores.įor simple and common types of insurance, such as automobile insurance, underwriters typically rely on automated recommendations. Underwriters evaluate these recommendations and decide whether to approve or reject the application. The program then provides recommendations on coverage and premiums. They take specific information about an applicant and enter it into a program.
ABACUS INSURANCE UNDERWRITERS SOFTWARE
Insurance underwriters use computer software to analyze risk for determining whether to approve an applicant. Underwriters are the main link between an insurance company and an insurance sales agent. Determine appropriate premiums and amounts of coverage.Contact field representatives, medical personnel, and others to obtain additional information.Review recommendations from underwriting software.Use automated software to determine the risk of insuring applicants.Screen applicants based on set criteria.Determine the risk involved in insuring a client.Analyze information stated on insurance applications.Insurance underwriters typically do the following: For approved applications, underwriters determine coverage amounts and premiums. Insurance underwriters evaluate insurance applications and decide whether to approve them. Learn more about insurance underwriters by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations. More Information, Including Links to O*NET
Similar OccupationsĬompare the job duties, education, job growth, and pay of insurance underwriters with similar occupations. Job OutlookĮmployment of insurance underwriters is projected to decline 4 percent from 2021 to 2031.ĭespite declining employment, about 8,400 openings for insurance underwriters are projected each year, on average, over the decade.Īll of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.Įxplore resources for employment and wages by state and area for insurance underwriters. The median annual wage for insurance underwriters was $76,390 in May 2021. Insurance underwriters typically need a bachelor’s degree to enter the occupation. Insurance underwriters work in an office setting during regular business hours. Please enable javascript to play this video.
0 kommentar(er)
