Underwriting Facts for an Insurance Advisor | AOLCC Skip to main content

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There is a common story about the origin of the term underwriter. Although some site the first usage as occurring in 1622, many accept that the practice and term were founded in the activities of Lloyd’s of London in the later 17th century. This was a coffee house that served as a market and community meeting place for merchants, sailors, and ship owners.

When there was a lot of trade between England and its colonies, merchants would pay a fee to a wealthy business person if they agreed to insure their shipments. These fees came to be known as premiums, and the insurers would literally write their name under the name of the ship and shipment they agreed to insure, and thus the term “underwriter” was born. What does underwriting look like today? Keep reading to find out.

The Process of Underwriting

Many of the skills required for underwriting correspond with those you will develop in insurance advisor courses. For some types of insurance, individuals or organizations must put in an application. Before they are approved for an insurance policy, an assessment must be done. This is where the underwriter comes in.

Underwriting refers to the steps taken to evaluate the risk of an insurance client. This is usually done by an in-house underwriter who has the insurance company’s interests in mind. This person will analyze information and decide what the right policy conditions are for any given insurance applicant. In some cases, the underwriter will negotiate with an agent if the risk assessment is more complex.

What Information Do Underwriters Need?

The answer to this question depends on the type of insurance. For example, when an individual applies for life insurance, the underwriter will look at the applicant’s history. This may include a recent physical done by a doctor, other medical records, driving history, prescription drug history, and family health history, among other things.

If you attend insurance advisor college in Alberta you will get hands-on experience that will prepare you with the knowledge to deal with a variety of insurance issues. Your passion for blending technical work with interpersonal interactions will be useful for employment in the life insurance sector, which usually requires an underwriter to look at several types of information and communicate with other insurance professionals.

Underwriters analyze all kinds of information in order to determine the risk

Underwriters analyze all kinds of information in order to determine the risk

Use Your Insurance Advisor Diploma to Become an Underwriter

There are several modules in the insurance advisor diploma program that will give you the foundation to connect you to your desired career path, whether you want to pursue positions as an insurance broker, an account manager, or an underwriter.

Underwriters typically have an interest in co-coordinating and analyzing information, but also want to speak with clients, agents, and consultants as part of their work life. The analytical skills you develop and the journey you take during your education will give you a sense of belonging in this position in the insurance industry. As you progress as an underwriter, you will likely underwrite more complicated risks and take on more responsibility in this important role.

Ready to begin your journey with the Academy of Learning Career College?