The Insurance industry, just like the human body, is one with several parts. Each part has its specific functions and roles. In fact, when one part isn’t functioning well, the other is affected. In short, the insurance industry is a united one with several departments, all working towards the success of the industry. One of the major departments of the insurance industry is that of the Underwriters. This department is made up of professionals who are trained to evaluate and analyze the risks involved in insuring people and assets.
In this article, we will discuss vividly all that you should know about underwriters. This includes their duties, responsibilities, and many more.
Who are Insurance Underwriters?
Basically, insurance underwriters are professionals saddled with the responsibility of evaluating and analyzing the risk involved in insuring an asset or individual. They decide if a prospective client should be insured or not, and if so; they recommend the right premium to take on such risk.
Furthermore, underwriters use different software to assess and evaluate the level of risk and also to calculate the cost. They also work closely with insurance agents who are more close to customers. And, in most cases, they also work directly with actuaries who calculate and determine the likelihood of mishaps that can befall a client.
Insurance underwriters major in different insurances. These include auto, homeowners, travel, marine, health, etc.
Duties and Responsibilities of Insurance Underwriters
In an insurance organization, an insurance underwriter performs the following duties and responsibilities:
- Determine premiums and coverage
- They decide whether or not to offer a client insurance coverage
- Evaluation of soft-ware based recommendations
- They analyze applicants’ data
- Operation of several underwriting software
- They assess applicants risks
How do I become an Underwriter?
To become an underwriter, you must possess a bachelor’s degree in any mathematics-related discipline related. This includes accounting, economics, mathematics, finance, statistics, computer technology, etc. Basically, this is the only requirement that you need to land the role of an underwriter. But it is important that you have relevant coursework, certifications, on-the-job training, and years of experience. In addition to this.
What are the skills an insurance underwriter must possess?
Basically, the role of an underwriter requires that you are good at decision making, presentation, have excellent communication skills, and several others. The possession of these skills makes you hirable and also helps you to carry out your job functions successfully.
Here are some key skills you must possess as an underwriter.
- Mathematics skills:
As an underwriter, you must possess a thorough understanding of statistics and probability. In fact, this is the most relevant math skill. This is because most of an underwriter’s task is on determining the appropriate rate for a client.
- Computer Savvy:
As an underwriter, it is important that you are computer savvy. This is because most statistical analyses carried out by them are done with some software specific to the industry. In addition, you must have a good eye for detail, because you will have to input a lot of data. And you have to do it appropriately.
- Analytical thinking
While you might find some decisions easy in this position, some will require that you access several factors related to an applicant. In this case, you will have to be analytic in your thinking to arrive at the best decision.
How much does an underwriter earn?
According to payscale.com, the average base salary of an underwriter in Nigeria is about N2.4 Million annually.
We cannot overstate the importance of underwriters in the insurance business. The position is a vital one. If you are looking to pursue a career in underwriting, you must possess a bachelor’s degree and some key skills needed to thrive in the position.