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Aug 22

Who Are Insurance Underwriters?

Senior Sales Com - Insurance UnderwritersNot all people who apply for insurance qualify for it.

Those who are responsible for determining whether or not these applicants qualify for insurance are the insurance underwriters. They use computer based programs to help them in their decisions by evaluating each application. Those that are approved need to have their coverage and amount of premiums decided, as well as the terms of their insurance. All of these are done by the insurance underwriters responsible. No insurance can be approved without its applications going through insurance underwriters first. As such, applications are given to insurance underwriters by insurance agents and those who qualify and are approved move on to be seen by the insurance company and offered the policy. If they agree to the coverage provided and amount of the premiums they need to pay, then the company can insure them. Due to the time-saving and accurate technique of separating the qualified applicants from others by software programs, this has been proved to be a good method for sorting out the applicants that most qualify, those that somewhat qualify, and those who do not qualify for a certain insurance. Having a list of priorities of clients to insure helps the insurance company work in an organized manner and to make informed decisions by considering which clients are more qualified for certain insurance policies. The benefits of insuring clients that meet the criteria of the insurance better are recognized by insurance companies world-wide.

Insurance underwriters are mainly in charge of analyzing all the information provided in insurance applications in order to estimate all threats of insuring any one client.

If the risks are too high, then it would be unwise to insure that client. If however, the risks are at a minimum amount, then insuring them would not be a trouble. Knowing exactly what risks you are taking before insuring a client is necessary due to making the best investments and keeping your business afloat. Based on the factors that make a client qualified for a certain insurance policy, the insurance underwriters have the power to filter out the applications that do not meet those set factors and only insure those that qualify best. Even those who qualify best for one type of insurance may not qualify at all for another type. Another thing that insurance underwriters are in charge of is determining details of the policy because all cases are unique and each case must be given a different amount of coverage and premiums to pay. These estimations can also be done by computer software programs that help insurance underwriters relate such information from insurance agents to the insurance company. However, the accuracy of the data entered into the software program depends on the information gathered by insurance agents, thus making the data-gathering job a very important one. Accuracy and validity are very important in this area when coming to hard decisions between applicants and qualifications.

Although software programs give an output of which clients best qualify and what their coverage and premiums should be, insurance underwriters have the power and ability to choose to ignore the suggestions of the program by evaluating factors themselves and coming to different decisions. This is possible because no matter how accurate a software program may be, computers do not think like humans and decisions made by them may be logical but not considered in the best interest of the company by insurance underwriters who get the final say. Consulting other resources and researching further about the client may help come to best decisions that were doubtful before. The success of the company is in the hands of the insurance underwriters due to this fact that they can decide which clients offer a risk worth not taking and which ones offer some risks but not enough to throw the insurance company. This may be a hard decision to make at times if there are not enough clients for the company.

The job of an insurance underwriter varies depending on what type of insurance the company offers.

Offering different types of insurance warrants different criteria to be considered while making decisions about which clients qualify and which do not. For example, being in the field of life insurance would mean that the insurance underwriter needs to consider the age and finance of the client while another insurance coverage may not involve the financial standing of the client at all.