Underwriters appraise and select the risks their company will insure. An insurance company may lose business to competitors if the underwriter appraises risks too conservatively, or it may have to pay more claims if the underwriting actions are too liberal.
Underwriters decide whether an applicant for insurance is an acceptable risk.
They analyze information in insurance applications, reports from loss control consultants, medical reports, and actuarial studies-reports that describe the probability of insured loss. They then decide whether to issue a policy and may outline the terms of the contract, including the amount of the premium. Underwriters sometimes correspond with policyholders, agents, and managers about policy cancellations or other matters. On rare occasions, they accompany sales representatives on appointments with prospective customers. They further specialize in group or individual policies.