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Job Description: Underwriter
As an underwriter, you'll decide whether applications for insurance cover should be accepted, and on what terms. You'll assess a risk according to the likelihood of a claim being made.
To do this you'll weigh up a number of factors, using detailed information supplied by prospective clients. Essentially, your aim is to minimise losses and help your company to make a profit.
You're likely to specialise in one type of insurance. Your daily activities will vary accordingly, but may include:
- Studying insurance proposals
- Gathering and assessing background information
- Calculating possible risk and deciding how much individuals or organisations should pay
- Deciding whether the risk should be shared with a re-insurer
- Computing results for appropriate premiums using actuarial information, other statistics and you own judgement
- Visiting brokers or potential customers and preparing quotes
- Liaising with specialists, such as surveyors or doctors, for risk assessment
- Gathering information and various types of reports such as medical records from specialists
- Negotiating terms with policyholders or their brokers
- Ensuring that premiums are competitive
- Specifying conditions to be imposed on different types of policies, for example asking that a property owner install a security alarm
- Negotiating with brokers and drawing up contracts
- Writing policies.
Hours and Environment
Your working hours will mainly be 9 - 5, possibly with some extra hours at busy times. You can usually work flexible hours if you prefer.
You'll be mostly office based, with some visits to insurance brokers and clients. The job can be very pressured and stressful, although it's unlikely that you'll be away from home at night or required to travel abroad.
Skills and Interests
To be an underwriter you'll need:
- The ability to absorb technical information
- An analytical mind
- The ability to make decisions
- Numeracy
- Confidence
- Sound judgement
- The ability to work to tight deadlines
- Willingness to use your own initiative
- Good interpersonal and communication skills
- Negotiating skills
- For life assurance, some medical knowledge would be helpful.
Entry
You can become an underwriter with any degree, although science subjects, engineering, accounting/finance, business/management; economics; law; mathematics and statistics are most useful. If you have an HND in these subjects you may also be a good candidate.
You won't need a pre-entry postgraduate qualification, and may even be able to enter without a degree or HND. Relevant work experience with an insurance company could well improve your chances.
You could enter the profession through an insurance company's graduate training scheme, or through promotion from an administrative job in insurance. Some companies recruit underwriters internally, and will consider applicants with general insurance experience. Many graduates start their careers this way, moving into underwriting at the end of their training scheme.
As competition for graduate training schemes is fierce, try to get work experience or vacation work in insurance. Before applying, research the company and the insurance industry thoroughly.
Training
Your initial graduate training scheme may last for up to two years. You'll then take another two or three years' training in a chosen specialist area.
It will tend to be on the job, working with more experienced colleagues and familiarising yourself with different departments and their functions, such as accounts, claims and investment. Lloyd's trainees will be expected to pass the Lloyd's Introductory Test (LIT). You may also be required to attend short courses covering areas such as: understanding the world of insurance; communication skills; negotiation techniques; customer care; and information technology and statistics.
Many larger companies offer a planned training programme including the Chartered Insurance Institute (CII) professional examinations. Reaching associateship level usually takes three years, and should improve your chances of promotion or management.
Opportunities
There are around 750 organisations involved in insurance in the UK, including general insurers, life assurance companies, Lloyds, re-insurance and health insurance specialists, banks and credit companies and more besides. These may all be interested in your services as an underwriter.
You could also move into other core areas of insurance, such as risk management, claims or broking.
Alternatively, you could go into re-insurance, or progress into a specialist field such as marine or aviation insurance. If you speak one or more foreign languages, you could work abroad. Moving into sales is another option.
Another route is to progress to senior underwriter, again specialising in a particular field. Dealing with more complex or greater risks will increase your opportunities for transfer to different posts and companies, as will gaining professional qualifications and a willingness to relocate.
There are only limited opportunities for self-employment or freelance work, although you could set up your own broking company.
Annual Income
Figures are a guide only.
- Typical starting salaries range from £18,000 - £24,000 plus
- At senior level, they rise to £40,000 - £100,000
- Professional underwriters at Lloyd's of London can earn over £300,000
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