How to Be Claims Underwriter - Job Description, Skills, and Interview Questions

Mar 9, 2023 / 5 Minutes Read / By Albert

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Claims Underwriters are responsible for evaluating insurance claims, to determine the amount of coverage an individual or company is entitled to receive. This process can have a significant impact on the financial well-being of individuals and organizations, as the size of the claim can determine the validity of the claim. As such, Claims Underwriters must use their expertise to assess factors such as the severity of the claim, the amount of coverage requested, and other related circumstances.

In addition, they must consider any relevant laws or regulations while making their decision. Claims Underwriters must weigh all available evidence and make an informed decision that serves the best interests of all parties involved.

Steps How to Become

Earn an Underwriting Degree. Most employers require underwriters to have a bachelor's degree in a financial field such as accounting, finance, economics, or business administration.
Get Certifications. Consider becoming certified in areas such as life and health insurance, private property and casualty insurance, and personal lines of insurance.
Build Professional Experience. Claims underwriters need experience in the insurance industry. While some employers may accept experience in customer service or sales in lieu of insurance experience, many prefer to hire candidates with at least three years of related experience.
Develop Analytical Skills. Claims underwriters must be able to interpret policy language and understand the legal ramifications of their decisions. They must use their analytical skills to determine the validity of claims and decide whether to pay them or deny them based on the policies that are in place.
Develop Interpersonal Skills. Claims underwriters must be able to interact effectively with policyholders and other professionals, such as attorneys and medical personnel. They must also be able to explain why they are making certain decisions and be able to negotiate and resolve disputes.
Pursue Continuing Education. Claims underwriters must stay up-to-date with changes in the insurance industry, particularly related to laws and regulations. They should pursue continuing education courses to stay current on new developments in the field.

In order to stay ahead and qualified as a Claims Underwriter, it is important to stay up-to-date with industry trends and regulations, maintain an extensive knowledge of laws and procedures related to insurance claims, and develop strong analytical skills. staying organized and managing time efficiently are also essential qualities for success in this role. By remaining informed of new developments in the industry and staying organized, Claims Underwriters can ensure that they are always qualified to handle their jobs unique duties and responsibilities.

honing analytical skills helps them accurately assess the risk and potential liability associated with each claim they review. this combination of knowledge, organization, and analytical skills can help Claims Underwriters stay ahead and qualified in their field.

You may want to check Automotive Underwriter, Casualty Underwriter, and Commercial Underwriter for alternative.

Job Description

Analyze risk and underwrite insurance policies for individual clients
Review applications for accuracy and determine appropriate coverages
Develop pricing models to evaluate the profitability of new and existing policies
Maintain records on all policies in the system
Communicate clearly and effectively with agents, brokers, and customers
Monitor policy renewals and educate clients on changes in coverage
Monitor trends in the insurance industry to ensure competitive pricing
Review and process claims for payment
Handle customer inquiries and complaints
Make recommendations for improving company processes and procedures

Skills and Competencies to Have

Knowledge of insurance concepts and principles
Proficiency in evaluating and assessing coverage, risk and liability
Ability to analyze data, draw conclusions and make decisions
Excellent communication and negotiation skills
Ability to multi-task and prioritize tasks
Proficient in computer systems, including underwriting software
Ability to work in a fast-paced environment
Ability to maintain a high level of accuracy and attention to detail
Ability to work effectively with minimal supervision
Strong customer service skills

Claims Underwriting is a critical role in the insurance industry, requiring a keen eye for detail and a strong understanding of risk assessment. A successful Claims Underwriter must have excellent communication skills to effectively evaluate and negotiate claims with customers and other insurance professionals. Problem-solving skills, financial analysis skills, and the ability to interpret legal documents and regulations are all essential for this role.

In addition, Claims Underwriters must possess strong organizational skills in order to track claims from start to finish. Without these skills, a Claims Underwriter would not be able to adequately assess and manage claims in a timely manner, leaving the insurance company at risk for financial losses due to improper settlement or delayed payments. As such, the ability to effectively evaluate and manage claims is essential for the success of an insurance company.

Corporate Underwriter, Mortgage Underwriter, and Life Insurance Underwriter are related jobs you may like.

Frequent Interview Questions

How do you prioritize and manage multiple tasks?
What experience do you have in handling complex insurance claims?
How would you handle a dispute with a customer regarding an insurance claim?
Describe a difficult situation you encountered handling an insurance claim and how you handled it.
How do you stay organized when managing multiple claims at once?
What strategies do you use to ensure accuracy and completeness of claims information?
What challenges have you faced when resolving complicated insurance claims?
What do you think is the most important factor in determining the validity of an insurance claim?
How do you assess risk when evaluating an insurance claim?
What strategies do you use to ensure that all customers are treated fairly and their claims are handled promptly?

Common Tools in Industry

Insurance Rating Software. A software used to calculate premiums based on a variety of risk factors. (e. g. CLUE)
Policy Management System. A software used to manage policies across multiple carriers and lines of business. (e. g. Vertafore Policy)
Claims Processing System. A system used to process and manage claims. (e. g. Exigen Claims)
Risk Analysis Software. A software used to analyze risk and create reports for underwriters. (e. g. LexisNexis Risk Solutions)
Claims Fraud Detection System. A system used to detect fraud within the claims process. (e. g. SAS Anti-Fraud Solutions)
Document Management Software. A software used to store and manage digital documents related to claims. (e. g. DocuSign)
Claim History Database. A database that stores data about previous claims and their outcomes for underwriters to use for evaluating future risks. (e. g. ISO ClaimSearch)
Statistical Modeling Software. A software used to create models for predicting future losses and analyzing historical claims data. (e. g. SAS Visual Analytics)

Professional Organizations to Know

American Association of Professional Claims Adjusters
Professional Liability Underwriting Society
International Risk Management Institute
Risk and Insurance Management Society
National Association of Insurance Commissioners
Chartered Property Casualty Underwriters Society
Canadian Loss Adjusters Association
Association of British Insurers
Institute of Insurance and Risk Management
International Association of Insurance Professionals

We also have Credit Underwriter, Personal Lines Underwriter, and Inland Marine Underwriter jobs reports.

Common Important Terms

Risk Assessment. A process of identifying and evaluating potential losses that could be incurred on an insurance policy.
Underwriting Guidelines. A set of criteria used to evaluate a potential risk and determine an appropriate premium rate.
Premium. The amount of money that an insured party must pay for coverage.
Coverage. The extent to which a policyholder is protected from financial losses.
Deductible. The portion of a claim the policyholder must pay before the insurer will make any payments for a loss.
Exclusions. Provisions of a policy that limit or exclude certain types of losses from being covered by the policy.
Reinsurance. A type of insurance taken out by an insurer to protect against large losses.
Loss Reserve. An amount set aside by an insurer to cover expected claims in the future.

Frequently Asked Questions

What is a Claims Underwriter?

A Claims Underwriter is a professional who evaluates an insurance claim to determine the amount of coverage to be provided and the payment of associated costs.

What qualifications are required to become a Claims Underwriter?

To become a Claims Underwriter, one must usually have a bachelors degree in a related field, such as finance, accounting, economics, or business administration. Additional certifications may also be required.

What are the responsibilities of a Claims Underwriter?

The primary responsibilities of a Claims Underwriter include evaluating insurance claims, determining their validity, and assigning appropriate coverage and payment for associated costs. They also review policy details, assess risks, and provide advice to policyholders.

How does a Claims Underwriter evaluate an insurance claim?

Claims Underwriters typically evaluate claims by reviewing documentation, assessing the risk of the claim, and determining whether or not it meets the requirements of the policy. They also review the policy details and provide advice to policyholders.

What is the average salary of a Claims Underwriter?

According to PayScale, the average salary for a Claims Underwriter is $59,962 per year. However, salaries can range from $41,918 to $87,614 per year depending on experience and geographical location.