Underwriting
Underwriting is the process of evaluating and deciding whether to accept risks for insurance coverage. It's like being a risk detective - underwriters look at applications for insurance (whether for homes, cars, businesses, or lives) and determine if the insurance company should offer coverage and at what price. They use guidelines, data, and analysis tools to make these decisions. This role is fundamental to how insurance companies operate, as it helps them balance making money through premiums while managing the risks of future claims.
Examples in Resumes
Managed Underwriting decisions for over 500 commercial property applications per year
Led team of junior Underwriters in evaluating life insurance applications
Developed new Underwriting guidelines for auto insurance risk assessment
Improved Underwriting efficiency by implementing new risk assessment procedures
Typical job title: "Insurance Underwriters"
Also try searching for:
Where to Find Insurance Underwriters
Professional Associations
Job Boards
Professional Networks
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where a high-value client's application doesn't meet standard underwriting guidelines?
Expected Answer: A senior underwriter should explain their decision-making process, including evaluating exceptions, considering business relationships, exploring alternative coverage options, and balancing risk with business opportunities.
Q: How do you stay current with industry trends and incorporate them into underwriting decisions?
Expected Answer: Should discuss monitoring industry publications, attending conferences, analyzing market data, and adapting underwriting guidelines based on emerging risks and market conditions.
Mid Level Questions
Q: What factors do you consider when evaluating a commercial property insurance application?
Expected Answer: Should mention property location, construction type, safety measures, claims history, business type, and financial stability of the applicant.
Q: How do you balance meeting sales targets while maintaining good risk management?
Expected Answer: Should explain strategies for finding acceptable risks, working with agents, using reinsurance when appropriate, and maintaining underwriting discipline.
Junior Level Questions
Q: What is the purpose of underwriting guidelines?
Expected Answer: Should explain that guidelines help make consistent decisions about which risks to accept or decline, and how to price insurance policies appropriately.
Q: What information do you need to review a basic auto insurance application?
Expected Answer: Should list driving record, vehicle information, credit score, age, location, and previous claims history as key factors.
Experience Level Indicators
Junior (0-2 years)
- Basic risk assessment
- Understanding insurance policies
- Following underwriting guidelines
- Basic data analysis
Mid (2-5 years)
- Complex risk evaluation
- Policy modification decisions
- Agent relationship management
- Market analysis
Senior (5+ years)
- Strategic risk management
- Team leadership
- Complex case resolution
- Portfolio management
Red Flags to Watch For
- No knowledge of basic insurance terms and concepts
- Poor analytical or math skills
- Lack of attention to detail
- No understanding of risk assessment principles
- Unable to explain decision-making process
Related Terms
Need more hiring wisdom? Check these out...
Global Compliance Checks: The Hidden Puzzle Pieces of Background Screening Revealed
Automated Scorecards in ATS Systems: Your Secret Weapon for Smarter Hiring Decisions
Supercharge Your Candidate Screening: 7 Unorthodox Ways to Hire Faster Without Breaking a Sweat
