Insurance Underwriting

Determine a client’s eligibility for an insurance policy and the amount of premium to be paid.

Essential to the insurance industry, underwriters analyse insurance proposals for risks, write policy terms and calculate the amount of premium to be paid by a client using actuarial, statistical and other relevant information.

Evaluating the amount of risks associated with any insurance policy is complex as it requires good judgment from an underwriter with a keen eye for detail. Moreover, it is an underwriter’s responsibility to ensure that the customer will receive a competitive quote worth considering, yet still maintain the company’s profit margins.

General overview

While underwriting is open to graduates of any discipline, those of a certain background are at an advantage, as employers prefer underwriters with numerate degrees such as finance, accounting, mathematics, or economics, though law or business degrees.

Some recruiters even require specific backgrounds for some vacancies – for instance, a science-based degree, such as biology, may be required in order to write life insurance policies.

Although graduates usually start out as junior underwriters or assistants in insurance agencies such as AIG, Manulife, AXA, Allianz and Etiqa, certification through coursework is a must for career progression to senior underwriting positions, more specialised areas of underwriting, or management.

Career progression also hinges on an underwriter’s capability to evaluate risk and build relationships with other departments, such as the actuarial division. Keeping abreast of new insurance policies and products, regulations and technology is also vital.

Required skills

Detail-oriented graduates will find their talents being put to good use in this role, though numeracy, analytical, writing and IT skills are needed as well.

Because an underwriter is also responsible for the preparation of the terms and conditions of the insurance policies and may occasionally liaise with insurance brokers and clients, strong interpersonal skills are essential too.

Pros and cons

On top of offering a friendly environment, there are many opportunities to build relationships between both colleagues and clients. On top of that, remuneration is also fairly high.

The position is not suitable for candidates who dislike routine and structure, though. Moreover, due to rapid advancements in technology, demand for underwriters are slowly declining. Extensive knowledge, experience and skill are also necessary for the job.