Commercial Underwriter Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a commercial underwriter. Feel free to use our commercial underwriter job description template to produce your own. We also provide you with information about the salary you can earn as a commercial underwriter.
Who is a Commercial Underwriter?
A Commercial Underwriter is a professional who makes choices about property and policy risks for an organization. The underwriter’s job is to make sure that a company’s financial decisions are sound and contribute to greater business quality. This entails assessing business risks and making decisions that may have a significant impact on the organization. A commercial underwriter is an insurance industry specialist who uses risk management and analytical strategies to help their business succeed. They frequently work in an office setting, either physically or virtually. Depending on their organization, commercial underwriters may specialize in a specific sort of product or risk.
Data and analysis are used by many types of businesses to make decisions, especially when it comes to financial risk. Organizations, particularly insurance companies, use commercial underwriters to help limit potential financial risk. These professionals assess applicants for products such as insurance coverage and decide whether and to what degree the organization should approve them. We’ll go over the position of a commercial underwriter and what they perform in this post, as well as a list of actions you may take to get started on this vital and interesting career.
The duties and responsibilities of a Commercial Underwriter include, but are not limited to, reviewing applicant data, assessing risk, operating underwriting software, evaluating software-based recommendations, and, if necessary, researching policies. For commercial underwriters, there are no industry-wide educational requirements. However, many organizations, particularly larger ones, prefer candidates with a bachelor’s degree in a business or finance-related subject or prior insurance experience. Companies frequently give on-the-job training, so you might begin as a trainee and progress to a full underwriter position once your training is completed.
In the insurance industry, a commercial underwriter assesses the risk associated with applications for specific products. This study is carried out by commercial underwriters in the context of commercial or business applicants for insurance firms. These professionals may examine candidates for property, casualty, life, health, or other insurance policies in order to establish how costly it would be to insure them. This data is crucial in ensuring the financial health of insurance firms. Working as an underwriter necessitates strong analytical and quantitative abilities. Many of them have a bachelor’s degree in finance, statistics, or another math-related profession. Personal integrity is required because the profession involves using personal information to analyze potential clients. Additionally, underwriters that succeed in the field also finish tasks on schedule and effectively predict risk.
Commercial Underwriter Job Description
Below are the commercial underwriter job description examples you can use to develop your resume or write a commercial underwriter job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a commercial underwriter include the following:
- Obtain required documentation from clients in collaboration with the sales and brokerage divisions.
- Screen and evaluate new applications based on predetermined criteria.
- Ascertain that all pertinent personal information about the client is appropriately recorded.
- Look into a client’s medical and claim history before approving an application
- Identify potential financial threats to the company.
- Design alternative insurance alternatives for clients in collaboration with the actuarial department.
- Refer high-risk applications to reinsurance.
- Report potential losses and excessive risks to management.
- Assist brokers and sales employees thereby, answering all underwriting-related questions.
- Provide brokers with tailored estimates.
- Analyze the claims history and business information of clients.
- Examine business insurance applications to determine the level of risk involved and whether or not to accept them.
- Monitor in order to adjust insurance plans when risk is high or substandard, clients’ behaviors.
- Identify any credit risks associated with the loan request and suggests alternate loan options to the applicants.
- Assess the borrower’s ability to afford a loan modification by looking at their income, assets, and monthly responsibilities and expenditures.
- Manage all loan classifications as well as OREO.
- Conduct online research to generate and qualify leads.
- Manage jumbo loans with loan amounts ranging from $749,999 to $1,000,000, verifying accuracy before approving and preparing documentation for a trial modification.
- Prepare UCC filings for specific consumers.
- Conduct UCC searches on various companies to reduce the risk associated with request lines of credit.
- Train credit union employees on FNMA/FHLMC guidelines for underwriting, including detailed appraisal review, DU/LP, and manual underwriting.
- Test case loans in accordance with FHA criteria, employees will be able to receive full HUD designation by successfully completing the requisite HUD.
- Monitor and analyze covenant compliance, quarterly updates, and cash flow requirements for commercial portfolios.
- Examine binders, applications, renewals, and endorsements to determine whether coverage should be accepted, rejected, or modified.
- Analyze risk using the information gathered to make decisions on processing policies and endorsements.
- Analyze and examine prospects who are interested in purchasing a personal auto policy, a house insurance policy, or flood insurance.
- Perform internal yearly bank audits, which involve a financial and historical study of the portfolio’s corresponding commercial loans.
- Prepare and analyzes new business endorsements and policy renewals for house, vehicle, umbrella, and watercraft insurance.
- Determine whether there was a misrepresentation of occupancy, employment/income, and whether the loan was eligible for delivery to FNMA.
Qualifications
Education: A bachelor’s degree is usually the only need for employment as an insurance underwriter, however relevant coursework is beneficial. Business, mathematics, science, accounting, finance, economics, probability and statistics, computer technology, and engineering are the finest courses of study for insurance underwriters. Any degrees in those fields will be advantageous.
Training: If hired straight out of college, underwriters undergo considerable on-the-job training and coaching. To learn about rules, procedures, and strategies, underwriting trainees are usually paired with experienced underwriters.
Certificate: Many organizations encourage or require underwriting certificates, which can be obtained by taking courses via The Institutes, a risk management and insurance firm. Associate in Commercial Underwriting or Associate in Personal Insurance is a common credential for junior underwriters. The coursework and examinations for these credentials typically take 1-2 years to complete. Chartered Property and Casualty Underwriter certification is often pursued by more experienced underwriters with at least three years of experience.
Excellent negotiating methods and talents
Ability to multitask and meet several deadlines at the same time
When interacting with and interviewing new clients, interpersonal and customer service skills are necessary.
Strong computer skills and the ability to use required software are required.
Self-assured in decisions and able to explain procedures or choices as needed
Essential Skills
To be employed and successfully carry out their obligations, underwriters must acquire and document analytical, quantitative, decision-making, verbal, writing, and presentation abilities.
Math skills: Perhaps the most important math skill is a grasp of statistics and probabilities. A large part of the job entails calculating an appropriate rate for an applicant based on the likelihood of the applicant filing a claim based on available data.
Computer savvy: Much of the statistical analysis is carried out using industry-specific software. Insurance underwriters must be skilled at using the program and ensuring that data is entered correctly.
Analytical thinking: While some decisions are straightforward, many situations necessitate insurance underwriters weighing multiple factors pertaining to a specific applicant. For many choices, even underwriting software is only a starting point; qualified underwriters must weigh computerized recommendations against their own best judgment.
Detail-oriented: Each candidate is unique, and each data point might have a varied impact on applications. In order to make the best conclusions, insurance underwriters must be as exact as possible with this information.
Knowledge of insurance rules, especially the Investment Adviser’s Act.
Ability to make sound decisions.
Skills in time management and prioritization.
Excellent communication abilities.
How to Become a Commercial Underwriter
Here are some measures you can take if you want to work as a commercial underwriter:
- Pursue a degree that is relevant to your field.
A bachelor’s degree is required for many underwriting roles. Consider getting a degree in a relevant discipline like math, accounting, or business. Examine the standards for admission to the university or college you want to attend, and compare them to your own qualifications. As part of their admissions requirements, most undergraduate programs demand a high school diploma or similar certification. Take courses that will prepare you for additional study in these areas if you’re still in high school. If you need a similar credential, look into online and in-person training options.
- Participate in additional training
Earn any additional certificates or qualifications that may help you prepare for a career in commercial underwriting during and after your high school and college studies. Consider joining professional groups that can connect you to professional learning opportunities and basic certifications. Investigate any licensing or other official requirements in your area and devise a strategy for obtaining them.
- Gain experience in the industry
Try to get some industry experience while you’re getting your degree and any relevant qualifications as an underwriter. If available, take advantage of student internships and employer-sponsored training programs. If you’re still early in your career and want to learn more about the function, you might also seek to shadow an experienced underwriter. For assistance in locating pre-career experience, contact local career services or your college or university.
- Look for an entry-level job.
Look into entry-level commercial underwriting employment in the area where you want to work. Prepare a résumé and cover letter that highlight your qualifications for the position, and send them in with your application. Because many businesses use applicant tracking software (ATS) to filter applications before a hiring manager examines them, make sure to include keywords from each job listing in your application materials. Try to personalize your application docs for each job you apply for. Working in an area connected to commercial underwriting can also be a good method to get experience while pursuing an underwriting job. To get general experience, consider working in various insurance jobs or specialties such as finance or customer service to gain general career skills. Many of the skills and experiences you earn in related professions may be transferable, allowing you to flourish as a commercial underwriter in the future.
- Continue to advance in your profession.
Be aware of any learning opportunities that may arise as you gain experience as a commercial underwriter. Formal opportunities, such as conferences and professional development classes, may be available. They could also take the form of experiences and actions that you can reflect on afterward to help support your field’s continuous progress. Continuing to improve your career skills can be a crucial component of your success.
Here are some other things to keep in mind if you want to work as a commercial underwriter:
- Establish meaningful objectives
Setting goals can aid in the development of a career plan, which may include a career in the insurance business. As a framework for your job advancement, try developing SMART goals. Specific, measurable, achievable, relevant, and time-based goals are known as SMART goals.
- Think about it on a regular basis.
Keep revisiting your original goals as you grow toward and through your career as an underwriter. Consider how your current actions contribute to those objectives and how you may advance your career. Reflecting on your achievements might assist you in being focused and devoted to your objectives.
- Look for a mentor.
Seek advice from a seasoned practitioner in the commercial underwriting field. Finding a mentor can assist you to obtain career insight and perspective, as well as help you develop in your field. To expand your professional network and connect with a mentor, consider joining professional organizations or attending industry events such as conferences.
Where to Work as a Commercial Underwriter
They frequently work in an office setting, either physically or virtually. Commercial underwriters are typically employed by insurance companies, financial institutions, accounting firms, marketing firms, and other businesses. However, as a commercial underwriter, you’ll mostly work for an insurance firm, conducting investigations into commercial applicants who wish to be insured by your company. Commercial underwriters spend a lot of their time in offices. Although underwriters spend the majority of their time alone at a computer working on applications, they must occasionally deal with client inquiries. Some property and casualty underwriters may visit properties in person to appraise them.
Commercial Underwriter Salary Scale
The average annual compensation for a Commercial Underwriter in the United States is $70,474 as of February 23, 2022. While annual salaries for Commercial Underwriters range from $57,000 (25th percentile) to $79,000 (75th percentile) on ZipRecruiter, the majority of Commercial Underwriter salaries currently range from $57,000 (25th percentile) to $79,000 (75th percentile), with top earners (90th percentile) making $100,000 annually across the United States. The typical compensation for a Commercial Underwriter ranges significantly (up to $22,000), implying that there may be several prospects for growth and increased pay dependent on skill level, location, and years of experience.
According to recent job posting activity on ZipRecruiter, the Commercial Underwriter job market in Lagos, Nigeria, and throughout the state is not very active at the moment, a few organizations are hiring. An area’s average yearly income for a Commercial Underwriter is $70,474, which is the same as the national average annual compensation of $70,474. Commercial Underwriter wages rank first out of 50 states nationwide. According to ZipRecruiter, the best way to estimate the most accurate annual salary range for Commercial Underwriter positions is to regularly check the database of millions of active jobs advertised locally across America.
In Lagos, the annual total compensation for an Insurance Underwriter is expected to be NGN 14,595,500. This figure shows the median, which is the midpoint of the ranges calculated using our proprietary Total Pay Estimate algorithm and salaries submitted by our customers. The annual basic wage is anticipated to be NGN 3,147,500. The extra compensation is anticipated to be NGN 11,448,000 per year. Cash bonuses, commissions, tips, and profit-sharing could all be options for further compensation. The “Most Likely Range” represents numbers that fall between the 25th and 75th percentiles of all available salary data for this position.
