Underwriters work for banks and other financial institutions. They assess the risk factor in accepting applicants for different services such as loans, mortgages, equity, insurance and capital. They review an applicant's credit history, age, financial situation and other factors to determine if the applicant would be a risk. If they are deemed a risk, applicants are determined by the underwriter to either be declined services or pay a premium interest rate. Underwriters' primary duty is to protect the financial institution for whom they work from losing money.
Underwriters work individually but they may sometimes work with other underwriters and they report to a bank manager or a similar position in other institutions such as a credit union. Underwriters' work hours are generally Monday through Friday between 8 a.m. and 4 p.m. They must be very proficient at their task and have great foresight. Their jobs play a primary role in determining if a bank makes or loses money because banks make the majority of their profit from the interest on services that they provide. If an underwriter determines that someone is eligible to receive services, but then that client does not pay back what they are borrowing, then the underwriter does not look good at all.
As an underwriting job may be in several different fields, they may have different requirements. The usual educational requirement for any underwriter is a bachelor's degree in finance or accounting. However, the certifications required differ: A mortgage underwriter would be required to have a different kind of certification than an insurance underwriter. Experience in underwriting or a related field is also preferred for many positions. Much of an Underwriter's job is relying on judgement, so they must be very good decision makers.
- Manage underwriting territory and select new business based on analysis of their profitability.
- Analyze new and renewal business, data, claim history, loss experience, and outcome of liability decisions.
- Underwrite, submit, approve or pend loans, and present decisions to management.
- Monitor existing policies for compliance with company guidelines.