How to Be Underwriting Technician - Job Description, Skills, and Interview Questions

The increasing cost of health care is having a direct effect on how insurance companies are approaching underwriting. In order to remain competitive, many insurers are turning to Underwriting Technicians to help evaluate and assess risk for insurance policies. These technicians employ a variety of methods, including data gathering, financial analysis, and statistical modeling, to determine the amount of risk associated with a particular policy.

By reducing uncertainty and risk, Underwriting Technicians are helping insurance companies stay profitable while providing coverage to their customers. As a result, they are an integral part of the insurance industry and will continue to play an important role in the years to come.

Steps How to Become

1. Obtain a high school diploma or equivalent. Most underwriting technician positions require a high school diploma.
2. Consider earning an associate degree in business, finance, or a related field. Although it is not required to become an underwriting technician, an associate degree may give you a competitive edge in the job market.
3. Pursue certifications in insurance and underwriting. Organizations such as the Insurance Institute of America, the American Academy of Actuaries, or the Institute of Certified Insurance Professionals offer certifications that demonstrate a mastery of certain topics related to insurance and underwriting.
4. Apply for entry-level underwriting technician positions. Many employers prefer to hire applicants with some experience in insurance or underwriting, but if you have a strong educational background or certifications, you may be able to land an entry-level position.
5. Gain experience in the industry. Once you start working, take advantage of any opportunity to learn more about insurance and underwriting. Participate in continuing education programs offered by your employer and stay abreast of industry trends.
6. Develop your skills and knowledge. As you gain experience as an underwriting technician, take on additional responsibilities and strive to become an expert in your field. Consider obtaining additional certifications to demonstrate your expertise.

Reliability and competence in an underwriting technician requires hard work, dedication, and attention to detail. Being able to develop a strong set of skills and knowledge in the field is essential for success. Developing a good understanding of the insurance processes, staying up to date on industry trends, and having excellent problem-solving and communication skills are all key components to success as an underwriting technician. By maintaining a high level of knowledge and detail-oriented work, one can ensure that they are providing accurate and timely information to their clients, which in turn leads to trust, satisfaction, and repeat business.

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Job Description

1. Review insurance applications and assess risk factors to determine eligibility for coverage
2. Calculate premiums and develop policy quotes based on risk evaluation
3. Review, analyze and process insurance documents such as applications, claims, policies and endorsements
4. Respond to inquiries from agents, underwriters and clients regarding policy terms, conditions and coverage
5. Update internal databases with changes in policy information
6. Monitor trends in the insurance industry and recommend changes to underwriting guidelines
7. Meet with clients and agents to discuss policy options and coverage levels
8. Develop and maintain strong relationships with clients and agents
9. Collaborate with other departments to coordinate underwriting services
10. Investigate potential claims and resolve disputes

Skills and Competencies to Have

1. Knowledge of underwriting principles and standards.
2. Proficiency in analyzing risk and making sound underwriting decisions.
3. Ability to effectively communicate with clients and other stakeholders.
4. Excellent written and verbal communication skills.
5. Highly organized with the ability to multi-task and prioritize tasks.
6. Proficient in Microsoft Office applications, such as Word, Excel and Outlook.
7. Ability to work accurately and efficiently under pressure and tight deadlines.
8. A good understanding of the insurance industry, products, and services.
9. Ability to interpret and evaluate financial statements and other data.
10. Strong customer service skills with empathy and patience.

Having a strong technical background is essential for an Underwriting Technician to be successful. Knowledge of computer systems and software is key, as they are responsible for handling data entry and processing applications. Analytical skills are also critical to assess and evaluate risks associated with applications.

A good eye for detail is also important to ensure accuracy when entering data. Furthermore, an ability to understand complex legal and financial documents is necessary to accurately assess the viability of an applicant. Finally, great communication skills are essential for Underwriting Technicians to effectively collaborate with other departments, such as Sales and Claims.

All these skills combined allow Underwriting Technicians to accurately and efficiently assess risk and determine if the applicant meets the company’s criteria for approval.

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Frequent Interview Questions

• What experience do you have in underwriting?
• Explain the process of underwriting a policy.
• How do you evaluate risk when underwriting a policy?
• Describe a situation in which you successfully identified potential risks in an underwriting situation.
• What challenges have you faced as an underwriting technician?
• What computer systems are you familiar with for underwriting?
• How do you stay up to date on changes in the underwriting industry?
• Describe a time when you had to work with a difficult customer while underwriting a policy.
• How do you ensure accuracy and compliance in your underwriting work?
• What strategies do you use to maintain productivity while underwriting policies?

Common Tools in Industry

1. Word Processing Software (e. g. Microsoft Word). Used to create, edit, format and print documents.
2. Spreadsheet Software (e. g. Microsoft Excel). Used to create, edit and analyze numerical data.
3. Database Software (e. g. Microsoft Access). Used to store, manage, and analyze large amounts of data.
4. Presentation Software (e. g. Microsoft PowerPoint). Used to create slideshows with text, images, animations, and multimedia content.
5. Insurance Underwriting Software (e. g. Xuber). Used to automate underwriting processes and evaluate risks.
6. Risk Management Software (e. g. Riskonnect). Used to identify, assess, measure, monitor, and mitigate organizational risk.
7. Claims Management Software (e. g. ClaimVantage). Used to automate the claims process from submission to adjudication.
8. Financial Analysis Software (e. g. Intuit QuickBooks). Used to simplify bookkeeping, accounts payable/receivable, payroll and other financial processes.

Professional Organizations to Know

1. American Association of Professional Agents and Brokers
2. The National Association of Professional Insurance Agents
3. Professional Liability Underwriters Society
4. National Association of Insurance and Financial Advisors
5. The American Risk and Insurance Association
6. National Council on Compensation Insurance
7. The Risk and Insurance Management Society
8. The International Underwriting Association
9. The Reinsurance Association of America
10. The Chartered Property and Casualty Underwriters Society

We also have Insurance Program Manager, Insurance Data Analyst, and Reinsurance Technician jobs reports.

Common Important Terms

1. Underwriting Guidelines. A set of rules and regulations used by insurance companies to determine the terms and conditions of a policy.
2. Risk Assessment. A process used to identify, analyze and evaluate potential risks associated with a particular activity or venture.
3. Claims Adjuster. A professional who investigates and evaluates insurance claims to determine their validity and amount of coverage.
4. Policyholder. An individual or entity that has purchased an insurance policy.
5. Premiums. The payments made by a policyholder to an insurance company in order to maintain coverage.
6. Reinsurance. A type of insurance purchased by an insurance company to protect itself from losses.
7. Actuarial Science. The application of mathematics and statistical methods to assess risks and determine premiums for insurance policies.
8. Underwriting Process. A series of steps taken by an insurance company to assess the risk associated with a policyholder or insured and to determine the terms and conditions of coverage.

Frequently Asked Questions

What is an Underwriting Technician?

An Underwriting Technician is a professional who assists Underwriters in the processing, pricing and issuance of insurance policies.

What qualifications are required to become an Underwriting Technician?

To become an Underwriting Technician, a person should possess a high school diploma or equivalent, along with experience in customer service, administrative support, or insurance-related fields. Certification in information, processes, and procedures related to the insurance industry may be beneficial.

What responsibilities does an Underwriting Technician have?

The primary responsibilities of an Underwriting Technician include providing administrative support to Underwriters, such as data entry, analysis of policy language and forms, and researching relevant market data. They are also responsible for making sure that policies are compliant with insurance regulations and company guidelines.

What skills are required to be a successful Underwriting Technician?

To be successful as an Underwriting Technician, one must have good communication and interpersonal skills, excellent attention to detail, the ability to work independently and in a team setting, strong problem-solving and research skills, and proficiency in Microsoft Office applications.

How much does an Underwriting Technician typically earn?

The median annual salary for an Underwriting Technician is approximately $45,000. Salaries may vary based on experience, location, education level, and other factors.

What are jobs related with Underwriting Technician?

• Aviation Insurance Agent
• Reinsurance Broker
• Reinsurance Accountant
• Insurance Claims Adjuster
• Underwriting Supervisor
• Life Insurance Agent
• Disability Insurance Agent
• Marine Insurance Agent
• Claims Processor
• Insurance Accountant

Web Resources

• 2022 Underwriting Technician - careers.business.unsw.edu.au careers.business.unsw.edu.au
• Underwriting - rmf.harvard.edu www.rmf.harvard.edu
• Underwriting | WSKB - Westfield State University www.westfield.ma.edu