With the aid of computers, underwriters analyze information in insurance applications to determine if a risk is acceptable and will not result in a loss. Applications are often supplemented with reports from loss-control consultants, medical reports, and actuarial studies. Underwriters then must decide whether to issue the policy and the appropriate premium to charge. In making this determination, underwriters serve as the main link between the insurance carrier and the insurance agent. On occasion, they accompany sales agents to make presentations to prospective clients.
Technology plays an important role in an underwriter's job.
These systems automatically analyze and rate insurance applications, recommending acceptance or denial of the risk, and adjusting the premium rate in accordance with the risk. With these systems, underwriters are better equipped to make sound decisions and avoid excessive losses. Life and health insurance underwriters may further specialize in group or individual policies. In the past, insurance agents acting as underwriters, particularly in the life and health fields, could accept or reject applications. Now this underwriting role is done mostly by full-time underwriters in the home or field office of the insurance company.