![]() ![]() Using this information and other factors, an underwriter will enter the data into underwriting software. The underwriter will review the applicant’s information including age, current health condition and past medical and family history. For example, underwriters who work with health insurance companies evaluate the health risk of applicants. Using the knowledge they have in their field, underwriters decides if a contract is worth the risk. What Are the Responsibilities of an Underwriter? Common majors include finance, business and economics. Typically, they have an academic major within their industry of specialization. Most underwriters have a bachelor’s degree and have completed a training program. However, if the contract turns out to be too risky, the underwriter is accountable for the loss. Underwriters determine if giving a loan or issuing an insurance policy will work in favor of their company. They use their knowledge and expertise to best asses the risk of an applicant. At any rate, if you’re working with an underwriter, you’re most likely seeking approval for a large purchase or insurance coverage.Įach industry has their own underwriters and these individuals must understand the intricacies of their specific field. Often, you’ll see this fee in the form of a commission, premium, spread or interest. ![]() They assess, evaluate and assume the risk of another party for a fee. They work for mortgage, insurance, loan or investment companies. Here’s a breakdown of the role and responsibilities of an underwriter.Īn underwriter is a member of a financial organization. If you’re considering a new life insurance policy or you’re interested in purchasing a home, understanding the role of an underwriter is vital. Based on their assessment, underwriters help companies determine if they should take on an applicant’s contract or not based on that applicant’s risk. Underwriters work for mortgage, loan, insurance or investment companies and do everything from evaluating your health to assessing your financial status. Underwriting is a common practice used in commercial, insurance and investment banking. ![]()
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