After deciding that an applicant is an acceptable risk, underwriters usually determine the amount of the premium. Rates may be set according to standardized classifications published in rate manuals, or revised to reflect individual or group risk variations. Underwriters may also limit the coverage or modify other terms of the contract. Underwriters frequently correspond with applicants, policyholders, agents, and branch managers about policy cancellations or requests for information. Some group Underwriters, along with Insurance Agents, attend meetings with union or employer representatives to discuss the types of policies available to their groups.
Most offices are large, modern, and equipped with the latest office machines and computers.
As a general rule, the industry provides good job security because most insurance is considered a necessity regardless of economic conditions. Underwriting is a complex, demanding, and responsible job. Underwriters use considerable judgment in appraising risks, and their decisions are seldom reviewed at a higher level. If Underwriters are too conservative or their rates are too high, the company may lose business to competitors. But if risks are not properly evaluated or standards are stretched too far, the company may have too many claim losses.