Recruiter's Glossary

Examples: Central Securities Depository • BIC (Bank Identifier Code) • Derivatives Trading

Underwriting

Term from Financial Services industry explained for recruiters

Underwriting is the process of evaluating and assessing risk when someone applies for financial products like loans, insurance policies, or investments. Underwriters are the professionals who decide whether their company should approve these applications and under what terms. They're like risk detectives who look at all the facts about an application to protect their company from potential losses while still trying to bring in business. This role exists in various sectors of financial services, including mortgage companies, insurance firms, and investment banks. You might see it referred to as "risk assessment" or "risk evaluation" in some job descriptions.

Examples in Resumes

Evaluated and approved over 200 mortgage applications as Underwriter meeting 98% accuracy targets

Led team of junior Underwriters in commercial insurance division

Developed new Underwriting guidelines for small business loans that reduced default rates by 15%

Typical job title: "Underwriters"

Also try searching for:

Insurance Underwriter Mortgage Underwriter Commercial Underwriter Risk Analyst Credit Risk Underwriter Senior Underwriter Commercial Loan Underwriter

Where to Find Underwriters

Professional Associations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How would you implement changes to underwriting criteria during economic uncertainty?

Expected Answer: A senior underwriter should explain how they would analyze market conditions, assess risk factors, possibly tighten criteria in certain areas while remaining competitive, and implement changes gradually while monitoring outcomes.

Q: How do you handle training and development of junior underwriters?

Expected Answer: Should discuss mentoring approaches, creating standardized training processes, reviewing work, providing feedback, and developing risk assessment skills in team members.

Mid Level Questions

Q: What factors do you consider when evaluating a complex commercial insurance application?

Expected Answer: Should mention reviewing financial statements, industry trends, claims history, risk management practices, and company history to make informed decisions.

Q: How do you balance risk management with business growth goals?

Expected Answer: Should discuss ways to maintain strict risk standards while finding creative solutions to approve good business opportunities, and explain how they use data to support decisions.

Junior Level Questions

Q: What basic factors do you look at when reviewing a simple loan application?

Expected Answer: Should mention checking credit scores, income verification, debt-to-income ratios, and employment history as basic assessment criteria.

Q: How do you ensure accuracy in your underwriting decisions?

Expected Answer: Should discuss using checklists, following guidelines, double-checking calculations, and seeking guidance from senior underwriters when needed.