Build your career as an Insurance Underwriter

Who is an Underwriter?

Underwriting is the process by which an organisation assesses the risks on transactions or businesses it is undertaking. It helps them to determine whether taking a particular risk makes businese sense? Underwriters are employed in various types of business. The most notiable are of following types:

• (1) Insurance Underwriter
• (2) Loans underwriters
• (3) Mortgage Underwriters
• (4) Equity Underwriters
• (5) Debt securities underwriters

An insurance underwriter is someone who determines whether taking a risk of providing coverage to a person or business is worthwhile. He examines the health and financial information in case of life insurance and technical, legal, financial information, physical conditions and several similar parameters with regards to assets, liabilities, operations etc. in case of Property insurance. They base their assessment on a careful analysis of the applicant's data and other available information and past experience. An insurance underwriters usually take any of these two decision:

• (i) Whether to accept the risk or reject it.
• (ii) If accepted, then on what terms, price and conditions.

What does Insurance Underwriter actually do?

• Examines Proposal for insurance
• Identifies potential risk involved in the transactions, does background check wherever required and/or available
• Quantifies the risks based on information provided and gathered
• Provides a quote for accepting the risk and determines policy terms
• Uses computer simulation software to analyse and research larger volumes of data
• Helps stakeholders take decisions on whether to accept or reject applications
• Ensuring that all insurance transactions are in compliant with applicable laws
• Choosing suitable and reasonable policies on the basis of knowledge and judgement
• Choosing whether to share the risk with a re-insurer

Skill required

Before granting an insurance, an underwriter does a risk analysis. He uses various skills to analyse and access the risk. As such he/she requires a series of specialized skills, including analytical, computer, communication, and math skills.

The process of underwriting has undergone several transformations over a period of time with the advent of new technologies in the field of computer, data analysis etc. enriching modern underwriters with several innovative scientific methods to support his decision-making process. Underwriting standards have been improving in the insurance arena world over; and towards achieving this, underwriters are being supported by several modern tools.

However, underwriting is still considered as both an art as well as a science. Despite a high degree of professional and technical expertise, which a modern underwriter professes, it is in how judiciously he applies it to the realities of his working life that would exemplify the quality of his contribution and his utility to the organization.

How to become an Insurance Underwriter?

To be an Insurance Underwriter one has to follow the given steps:

After doing 10+2 preferably in commerce, the aspiring candidates go for a Bachelor’s degree (BA, B.Com, B.Sc or BBA) or an Advance Diploma Course in the related field like:

• Insurance Management
• Banking and Finance
• Insurance and Risk Management
• actuarial or finance subjects

Candidate can also seek some specialisation in risk, mortgage, actuarial science after completion of graduation or advanced diploma courses.

ADVANCE DIPLOMAS

1. The Association of Insurance Underwriter - AIU-III Diploma in Life Insurance.

   This Diploma in Life Underwriting course is the result of collaboration between three institutions: the Association of Insurance Underwriters, Insurance Institute of India and the Academy of Life Underwriting coming together.

   It’s a two-level Diploma :

   Level-1 (Basic Level)
   • Diploma in Life Underwriting (DLU) consisting of Five Papers, which are a combination of mandatory 3 Insurance Institute of India Papers (IC-01, IC-02, IC-22)
   • Legal and Regulatory Book compiled from Select Chapters of IC-14 and IC-24 with three new chapters
   • Additional paper: Fundamentals of Medical Underwriting
   Level 2 (Advanced Level)
   • Advanced Diploma in Life Underwriting (ADLU) consisting of Three Papers
   • Covers Intermediate Medical & Non-Medical Life Insurance Underwriting & Advanced Life Insurance Underwriting
2. Associate and Fellow diploma from Insurance Institute of India (III)
   • Stage 1: LICENTIATE EXAMINATION
   • Stage 2: ASSOCIATESHIP EXAMINATION (Earn at least 250 credit points including Licentiate stage)
   • Stage 3: FELLOWSHIP EXAMINATION (Earn at least 490 credit points including previous stages)

   This level includes advanced studies of specified areas as per the elective i.e. Life or Non-Life like Actuarial aspects, Management Accounting, Asset Management, and Reinsurance Management etc.

Try Free Mock Test on all subject of III - IC-01 to IC-99

Eligibility:

• Successfully completed Matriculation, S.S.L.C., S.S.C. or any equivalent examination; OR
• Has worked with an insurer either in the field or office for a period of at least three years prior to the date of registration.

IRDA has recognized III as examining body to conduct pre-recruitment examinations for Insurance Agents, Corporate Agents, Web Aggregators, Insurance Marketing Firms (IMF) & renewal of Insurance Broker exams. III is also examining body for pre-licensing test for Insurance Surveyors and Loss Accessors.

POST GRADUATE DIPLOMAS

1. Post-Graduate Diploma in Management (PGCM) in Risk Management
2. Post-Graduate Diploma in Management (PGCM) in Insurance
   

   From The Institute of Insurance and Risk Management (IIRM), Hyderabad

   This course is 2-year duration, and Approved by AICTE

   PGCM is a Two-Year Master Level PG Program in Risk Management, General Insurance and Investment Planning & Life Insurance in addition to other courses offered by the Institute.

   Upon successful completion of the course, candidates get opportunities to be absorbed in Insurance Companies, Banks, IT and other Companies.

The Institute of Insurance and Risk Management (IIRM), Hyderabad is a joint initiative between The Insurance Regulatory and Development Authority of India (IRDAI) and The State Government of Telangana. The Institute is a Centre of Excellence offering various programs in Finance , Financial Services, Insurance, Actuarial Science, Risk Management, Health Insurance, Business Analytics, Marketing and Human Resources Management.

• Advanced Marketing
• Finance
• Operations
• Management
• HRM
• Insurance
• Risk Management
• Actuarial Science
• Data Science & Analytics

POST GRADUATE DIPLOMAS (continued)

3. Post-Graduate Diploma in - Actuarial Science (PGDM AS)
   

   PGDM in Actuarial Science is the unique specialization offered by institute in India. This discipline applies Mathematical and Statistical methods to assess valuations and risks in financial markets. Actuaries are trained professionals who analyze the financial consequences of risk. They use Mathematics, Statistics, and financial theory to provide advice and solutions for business and societal issues.

   Actuaries are excellent Risk Managers. They work in specialized areas of Banking, Retirement, Benefits, Healthcare, Investments and Insurance, or for any large organization where risk management plays an important role, or for a consultancy advising on different projects. The actuarial profession has consistently been rated one of the top jobs in the world. It is a prestigious profession with a wide range of opportunities.

   Insurance Institute of India (III), Mumbai has exempted Licentiate and would award Associateship Diploma (AIII) in Life or Non-life to the students of IIRM, who complete PG Diploma Certificate, provided they appear for the number of subjects as prescribed for their Associateship examination and comply with other prescribed formalities.

4. Post-Graduate Diploma in - Data Science & Analytics
   

   PGDM in DS&A is a blend of mathematics, business acumen, tools, Algorithms and Machine Learning techniques, all of which help the students in finding out the hidden insights or patterns from raw data which can be of major use in the formation of business decisions.

   Pass Mark
   • A minimum of 55% marks in each of the subjects is required for a Pass and award of Diploma / Certificate.
   • 55% - 59% - Pass
   • 60% - 79% - First Class
   • 80% and above - First Class with Distinction.
   Entrance Criteria
   • Any graduate from a recognized university and valid scores of CAT / XAT / MAT / ATMA / GMAT / CMAT / State level Management Tests.
   • Candidates can also opt for IIRM CET.
   • Those who are writing their final year exams can also apply.

INTERNATIONAL

5. Chartered Insurance Institute (CII), London
   

   The Chartered Insurance Institute (CII), is a premier professional organization in the Insurance and Financial Services Industry. This prestigious institution provides two diplomas: Dip CII & ACII qualifications.

   ACII qualification is globally recognized as a sign of competence, commitment and professionalism. This feature gives the international status to the courses of the Institute.

   The duration of the course are PGD (One year) and PGDM (Two years)

   The Fellowship program of the CII is regarded as the premier designation for those working in the insurance profession. By achieving the ACII, you have already demonstrated a high level of commitment, but the Fellowship shows that you have taken this commitment one step further. Acquiring the FCII designation will further demonstrate your knowledge, experience and professionalism to the world.