What is an underwriter for an insurance company?
One of the most important positions within an insurance company is the underwriter. Insurers can make enormous profits or losses from providing coverage based on the underwriter’s decisions and recommendations.UnderwriterAn underwriter is a position that calculates the insurer’s risk of extending coverage to an individual, company or property.FunctionThe underwriter is in charge of setting the costs for policy owners to pay for coverage. This includes premium and deductible amounts.ConsiderationsUnderwriters examine the information submitted on the insurance application. They also use actuary tables and computer systems to make more accurate calculations. If necessary, they may request additional information to review before making their decision.Importance of UnderwritersIf the underwriter’s standards for granting coverage is too strict, the company can lose customers to other insurers. If they are too liberal in their decision making, the company might grant policies that are too ris
