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Calculate the risk of investing, granting loans, or giving insurance.

What does an Underwriter do?

An underwriter makes a living measuring risk. There are many types of underwriters, but most work for insurance companies, banks, or investment firms. In this position, your job is to advise businesses about who they should offer services to, and which investments to make, based on the amount of risk involved.

Of the jobs under this title, insurance underwriter is the most common. In this position you gather information about the consumer, match that information with a policy the company offers, and evaluate the chance that the company will have to pay a claim. Take, for example, a driver who has had four car accidents in the last year. With that record, you would advise against offering insurance to that customer. In addition to deciding who is approved for coverage, you also help develop the policies and set the premiums.

Working in the banking industry offers another way to use your skills. In this position, you review loan applications and establish whether loaning money to the applicant is a good investment. You consider credit worthiness, real estate values, business assets, and income in your decision.

Securities investing is the third main job category for an underwriter. In this position, you make choices about how to invest money so that the largest profit is seen. You evaluate the risk level of different types of securities such as loans, stocks, and bonds. Then you inform the client about these risks and advise them about the best choices for them.

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