Insurance underwriters are professionals who assume the risk involved in a contract with an individual or entity, such as the cost of a car crash, in return for a premium or a monthly payment. Evaluating an insurer’s risk before the policy period and at the time of renewal is a vital function of an underwriter. Underwriters use specialized software and actuarial data to determine the likelihood and magnitude of a risk. They also employ an algorithmic rating method for pricing, which takes into account several factors, including an applicant’s credit rating. The system generates an appropriate premium based on the platform’s interpretation and the combination of all data reported from the observations of the field underwriter. The lead underwriter also subjectively considers answers submitted by the applicant on the policy application when arriving at a premium. The focus of insurance underwriting is on the potential policyholder.
Underwriters work with Insurance agencies to create policies suitable for brokerages to sell for their clients’ needs.
