Insurance underwriter: Job description

Insurance underwriters decide if applications for insurance cover (risks) should be accepted and if so, what the terms of that acceptance are. They assess a risk according to the likelihood of a claim being made by weighing up a number of factors and asking for detailed information from prospective clients (policyholders). The aim is to minimise losses for their company and help to make a profit.

Most underwriters specialise in one type of insurance. The main types of insurance include:

• general insurance: covers household, pet, motor, travel;
• life insurance/assurance: covers illness, injury, death;
• commercial insurance: covers companies;
• re-insurance: part of the risk is placed with another insurer.

Typical work activities

Daily activities vary according to the type of insurance offered by the company but may include:

• studying various insurance proposals;
• gathering and assessing background information;
• calculating possible risk and deciding how much individuals or organisations should pay for insurance (the premium);
• deciding whether the risk should be shared with a re-insurer;
• computing results for appropriate premiums using actuarial information, other statistics and own judgment;
• visiting brokers or potential customers and preparing quotes;
• liaising with specialists, such as surveyors or doctors, for risk assessment;
• gathering information and various types of reports (e.g. medical records) from specialists;
• negotiating terms with policyholders or their brokers;
• ensuring that premiums are competitive;
• specifying conditions to be imposed on different types of policies, for example, asking that a property owner install a security alarm;
• negotiating with brokers and drawing up contracts;
• writing policies;
• keeping detailed records of policies underwritten and decisions made.