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 risk, write policy terms and calculate the amount of premium a client is to pay using actuarial, statistical and other relevant information.

Evaluating the amount of risk associated with any insurance policy is complex as it requires good judgment from an underwriter with a keen eye for detail. Moreover, it’s an underwriter’s responsibility to ensure that customers receive competitive quotes worth considering, all while maintaining the company’s profit margins. 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 may even require specific backgrounds for some vacancies – for instance, a science-based degree, such as biology, may be required 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. 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, they may occasionally liaise with insurance brokers and clients. Thus, strong interpersonal skills are essential, too.

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 isn’t suitable for candidates who dislike routine and structure, though! Moreover, due to rapid advancements in technology, demand for underwriters is slowly declining. So, if you want to truly stand out for that spot, having extensive knowledge, experience and skills will be necessary.