Introduction:

As long as Insurance is considered a necessity for people and business, there will be scope for underwriters. To 'underwrite' means to accept liability for possible losses by clients. Underwriters calculate the financial risk of insuring a business or an entity, for prospective and current clients. Underwriters are active in different lines of insurance business, such as auto, home, commercial and farm insurance, individual, life and group life and health.

Underwriters review new or renew applications for insurance coverage, both for individuals and companies. Underwriting involves identifying, evaluating, and estimating the level of risk involved, establishing premiums matched to the risk and recommending coverage. Underwriters are integral to our long-term success and financial viability.

Underwriters measure risk exposure and determine the premium that needs to be charged to insure that risk. They take care of risk management. It is the underwriter who reviews the insurance applications and decides whether they should be accepted or rejected. Underwriters review insurance policies and coverage to determine if policyholders have the right amount of coverage, or if they should be insured with the company at all. An underwriter evaluates an applicant's exposure to risk and decides whether an applicant meets an insurer's standards. An underwriter may also become involved in setting prices for insurance applicants. An underwriter is a person who evaluates potential clients of a finance company or a bank. He assesses the fitness of an individual for the insurance services provided by an insurance firm.

Persons with excellent communication and computer skills along with a strong background in finance will have the best opportunities for employment in this field. Work as an underwriter differs depending on the type of insurance, as the types of clients the underwriter works with and the risks that are assessed will be different. The most important underwriting skills are learned on the job. As such, many underwriters begin their careers as trainees or assistant underwriters.

Eligibility:

Educational: College graduates who have a degree in finance or business administration, with courses in accounting are more likely to find opportunities for employment with large insurance companies. However, those with a bachelor's degree in any field can also enter this field.

Having a specialisation in property or mortgage underwriting, an additional course in finance, accounts or computer applications is an added advantage. For health and life insurance underwriting, a degree in medical or paramedical field is important, as health and life insurance underwriters have to assess the medical risk along with the financial risk involved with an individual.

Personal: Excellent communication and interpersonal skills are essential to be in this field as their work involves frequent communication with clients. Like in any other career, computer skills are an integral part of an underwriters job too. Analytical and decision making skills is needed as underwriter has to take quick and sound decisions. Mathematical skills is required as underwriting involves calculation of risk and premium. For those specialising in medical insurance, a medical background is useful. You should also have a good power of judgement.

Job Prospects & Career Options:

Being an Insurance underwriter is an excellent career option in the financial sector, to be more specific in the Insurance career. People who enjoy analysing information and are detail oriented find underwriting a suitable and satisfying job option. It is expected that the need for underwriters will remain constant throughout time, as insurance is considered to be a necessity for individuals and businesses both in good times and in times of crisis. It is considered as a profession that is less subject to recession compared to other career fields.

Underwriters job include studying insurance proposals, gathering and assessing background information, calculating possible risk and determining the premium. Underwriters work as a mediator between the policy holder and insurance company. Underwriters are able to find optimum premium rates that satisfy policy holders as well as maintain profitability for their employing insurance companies. An underwriter's job basically, involves office work and client interaction over the phone.

Underwriting has many variations and each one involves different kind of work. So, after a person has decided to opt for underwriting, the next step is to choose which field of underwriting he wants to go for. The four main categories are: Life insurance, Health insurance, Mortgage insurance and Property/casualty insurance. Life and health insurance underwriters may further specialise in group or individual policies. Property and casualty underwriters usually specialise in either commercial or personal insurance and then by type of risk insured, as in fire, homeowners, automobile, marine, or liability insurance, or workers' compensation. A mortgage underwriter is an insurance professional responsible for evaluating the risk of a mortgage application, from the financial institution's perspective. Mortgage insurance underwriters are employed by financial or banking institutions. There are also Construction and Marine underwriters who frequently travel to inspect work sites and assess risks.

Underwriters work in insurance agencies or for organisations that offer insurance services to insurance companies and policyholders. A small number of underwriters work in agencies owned and operated by banks, mortgage companies, and real estate firms. Experienced underwriters may advance to senior underwriter or underwriting manager positions. Moving into core areas of insurance like risk management, broking etc, after gaining sufficient experience as underwriters is common in this career. If you speak one or more foreign languages, there are also possibilities for opportunities abroad.

Institutes/Colleges:

• Advance Institute of Mangement, Ghaziabad
• Agra College of Mangement and Technology, New Delhi
• Aligarh College of Engineering and Technology, Aligarh,
• Apeejay Institute of Management, Jalandhar
• Arcade Business College, Patna
• Asia Pacific Institute of Management Studies, New Delhi
• DAV Institute of Management, Faridabad

Remuneration:

Remuneration is based on the employer, locality, experience and area of specialisation. Those who are employed in banks and insurance companies can expect a better pay scale than one employed in private agencies and real estate firms. Apart from fixed pay they also receive allowances, commission or brokerage, insurance coverage, retirement benefits etc. One can expect a starting salary ranging Rs. 6,000 - 8,000 plus brokerage. After gaining experience as an underwriter they can reach top positions as that of senior underwriter where pay scale may not be a constraint.

Bibliography: "Hugedomains.Com - Accountinglondon.Com Is For Sale (Accounting London)." Accountinglondon.com. N.p., 2017. Web. 22 Aug. 2017.