Requirements to Become an Underwriter
Educational Qualifications
To turn out to be an underwriter, the prime requirement is an educational level. A degree in business management is usually required to get involved with underwriting however, students with other degrees can also make an application for the job. For candidates interested in property or home loan underwriting, an additional course in finance, accounts or computer applications increases the resume. For health and life insurance underwriting, a level in medical or paramedical field becomes important, as health and life insurance underwriters have to assess the medical risk combined with the financial risk involved with an individual.
Deciding on the actual Specialization
Underwriting has many variations and each one involves different type of work. So, after a person has decided to choose underwriting, the next step is to choose which field of underwriting he really wants to go for. The various kinds of underwriting are medical health insurance underwriting, life insurance underwriting, general insurance underwriting, marine and aviation underwriting and so forth. Every specialization requires some additional skills. So, check, where you easily fit in and choose that option as your career.
Remain Up-to-date
The job of an underwriter involves analyzing the insurance coverage contract, keeping in mind, several factors like age, work hazards, health hazards, hazards due to location etc. The underwriting criterion needs to be changed if there is a particular global scenario. For instance, riots in a particular country increases the risk for that company if it insures a person from that area. If the underwriter is unaware of what is going on all over the world, he might make a mistake while underwriting. It is actually therefore, important for an underwriter to remain updated of the latest news and happenings all over the world.
Computer Skills
Underwriters do all their job on computer systems. A person who is well versed with computer skills and is able to handle it easily will not have any problem in adjusting towards the job. If you lacks in computer skills, it is better to learn it so that there is no difficulty in operating. This is one of the reasons why candidates with additional degree in computers possess a greater chance of getting in the underwriting workforce.
Conversation Skills
Underwriters need to communicate with other employees from the department, with employees of other departments as well just like clients. Written and oral communication skills are a should, so that the underwriter can communicate with people very easily. Using inappropriate language and inability to express will allow it to be difficult for an underwriter to do his business.
Good Understanding of Numbers
The underwriting process is all about numbers as well as calculations. A weak hand at accounting and mathematical skills will slow up the working ability of the person. Analyzing the actuarial information, which is a lot of numbers, is a part and parcel of the underwriter's job. A person can improve these skills if you take up crash courses in maths and accounts, so which, he does not face any problem once actual function begins.
Analytical and Decision-making Skills
Analyzing the risk involved and taking right decisions is something an underwriter needs to do for every case that has come up. Therefore, a person must acquire the ability of taking quick and sound decisions if he really wants to become an underwriter.
Medical Knowledge
For becoming a medical health insurance or life insurance underwriter, medical knowledge is extremely essential. That is why companies usually prefer doctors and pharmacists with this field of underwriting. Analyzing medical reports like ECG, X-rays, bloodstream reports, full medical reports etc., is a part from the job of a life insurance or health insurance insurance underwriter. So, if you want to become one of all of them, go ahead and brush up your medical knowledge before the interview.
Gain Experience and Obtain Certifications
Taking up on the internet training, internship programs or going for a job like a trainee, will actually help in gaining upper hand. Many organizations offer certifications to candidates who have taken up the needed courses. Certificate courses are available for specific types associated with underwriting like mortgage underwriting, insurance underwriting, medical underwriting and so on. These certifications provide an upper hand to such candidates with regards to landing a job. The Insurance Institute of America performs advanced programs in specific areas and awards the prospect with designations like Associate in Personal Insurance (API) as well as Associate in Commercial Underwriting (ACU). These designations are awarded following the candidate clears all the exams pertaining to it, which often take around two years.
The job prospects of a good underwriter are fair but, according to the U. UTES. Bureau of Labor Statistics, the hiring rate of underwriting professionals is likely to decrease by 4% between 2008 and 2018 primarily because new technologies and software are now being developed to perform the duties of an underwriter. Nevertheless, the need of professional underwriters will always be presently there. The average annual salary of an underwriter was reported to become $60, 000 as of September, 2011 which is a reasonably good amount. So, if you like to examine every detail of the given information and have the prerequisites of becoming a good underwriter, this career will surely help you in hiking the ladder of success.