What Is The Role Of Underwriters Under A Life Insurance Policy?

Primary Responsibilities of An Underwriter
Conclusion

The role of an Underwriter inside an insurance company is to evaluate and examine insurance requests in order to determine and assess the risks that the company will be undertaking if an insurance agreement is issued. They calculate the extent of the coverage provided by the policy and the premium depending on the results of their evaluation. Insurance Underwriters are able to decide whether an insurance policy should or should not be issued.

They work closely with Actuaries, Insurance Agents, and Insurance Brokers. Before an Agent or a Broker can close a deal with a potential client, Insurance Underwriters usually have the last say on whether the policy will be processed or not. They are also in charge of evaluating existing customers to decide whether their contract should be renewed or terminated.

Primary Responsibilities of An Underwriter

Here’s a non-exhaustive list of common tasks Insurance Underwriters are required to complete.

Evaluating The Risks Of An Insurance Policy Contract

Working in tandem with Actuaries to calculate the risks of insurance policies;
studying insurance applications to determine risks; and
gathering information on policy applicants (e.g. background checks, medical records, among others).

Calculating Premiums And Other Payments For Insurance Applicants

Analyzing risk reports and medical or property evaluations to determine costs.
Deciding the length of coverage of a policy:
Negotiating with clients, Insurance Agents, and Brokers;
Explaining risks; and
Authorizing financial transactions.
Risk evaluation

Adjusting Existing Premiums To Ensure That Accounts Remain Profitable

Updating information on risks;
evaluating if risks have increased or decreased; and
accommodating premiums accordingly.

Writing Insurance Policy Agreements

Determining coverage; and
establishing certain conditions for insurance agreements (e.g. demanding the insured to install a security system on their property or requesting a list of designated drivers of a vehicle).

Staying In Contact With Medical Examiners And Other Experts To Gather Information On A Policy Applicant

Asking for and reading expert’s reports based on examinations; and
explaining regulations and insurance procedures to them.

Reviewing A Company’s Records When Applying For Group Or Commercial Insurance

Evaluating the financial records of the company;
meeting with a company representative to negotiate terms; and
studying risk factors present in the company.

Evaluating Possible Losses In Case Of A Natural Disaster For Property Insurance

Calculating potential human and property losses;
evaluating existing policies in accordance to calculations; and
adjusting policies to decrease the possibility of losses.

Granting Or Declining Insurance Policies

Authorizing insurance policies when risks are low enough;
rejecting policy applications when risks are too high; and
granting or rejecting policy renewals based on risk reports.

Daily Tasks of An Underwriter

Here's a short list of the daily work that an underwriter has to do.

Collecting information on policy applicants.
Calculating and evaluating risks.
Working with Actuaries to calculate potential risks and losses.
Analyzing medical and expert reports.
Working with Insurance Agents and Brokers on policy terms.
Ensuring all paperwork and reports adhere to applicable regulations.
Calculating premiums and taking care of payment arrangements for new clients.
Keeping records of existing clients.
Adjusting existing insurance policies to ensure minimum losses.

Conclusion

Insurance Underwriters usually work during the standard 9-to-5 office hours, on a Monday through Friday basis. On times where there is more work to be done than usual (e.g. when natural disasters occur), Insurance Underwriters may be required to work extra hours. Their work is almost completely office-based. On certain occasions, Insurance Underwriters may need to travel in order to meet with Brokers or clients, although, in most cases, it happens the other way around.