Importance of Communication Skills for Underwriters

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Introduction

Underwriting is an insurance term that refers to a process through which financial institutions, especially banks and insurance companies use to gauge how eligible a person is to the services or products given by that particular company. Although underwriting is common with most financial institutions, it is most common with insurance companies.

Nature of the Job

An insurance company offers protection to individuals and other companies by assuming responsibility should any problems occur. The work of underwriters therefore is to identify the possibility of occurrence of risks, determine the amount of premiums to be paid on each policy, and also come up with appropriate policies that will cover the risks insured against sufficiently.



Underwriters play a significant role in the insurance industry and determine the success of an insurance company. Underestimation may lead to loss of customers while overestimation by underwriters may lead to the company going out of the market. Underwriters therefore take an in-depth analysis of all risk and determine which one to accept and which one to reject, putting several factors into consideration.

Technology has played a significant role in making the work of underwriters much easier. With the use of computers, underwriters are able to manage risks more accurately and efficiently. The major specialization of most underwriters is on property, health and life insurance policies.

Working Conditions

Most of the work that underwriters engage in is an in-house job that does not involve much physical activity. Underwriters also work standard hours which are approximately 40 hours in a week. However, this job involves sitting down for long hours, making critical analysis of the various risks, coming up with policies and entering the relevant data in the computer. At times however, the work may involve a bit of traveling and thus one might be forced to work above the standard 40 hours a week.

As already mentioned, underwriters play a vital role in the operations of an insurance company. The manner in which they carry out various activities determine to a great extent whether the company will make losses or profits. Some of the skills that an underwriter must have are communication skills. Communication in this case refers to both the speaking and the listening skills. Keen listening is an attribute that any good underwriter must have in order to take in all the relevant details.

An underwriter with excellent communication skills will know the right questions to ask customers and potential customers, and will be careful enough not to drive away clients of the company but instead attract new customers and maintain the old ones. Another area that an underwriter must demonstrate good communication skills is by listening keenly to the answer given and making prompt responses in case a question is asked. It is believed that good communication skills on the part of the underwriter play a major role in not only attracting clients, but also potential investors.

One may wonder why much emphasis is put on communication skills when it comes to the work of an underwriter. This is because of the nature of the work they do. It is important to remember that when it comes to matters of policy, underwriters will more often deal directly with clients. It is for this reason that they must demonstrate excellent communication skills. The questions they ask and the answers that they give are vital in the insurance business. Underwriters are also involved in various negotiations with customers, potential customers and investors, thus the need to have good communication skills.

Training

Underwriters play a significant role in the insurance field. It is for this reason that they need to undergo intensive training, not only to gain insurance skills, but strong and excellent communication and negotiation skills. The standard requirement to secure a job as an underwriter is that one must be a holder of a degree in a business related course, for instance, administration, business law or finance.

Underwriters are also encouraged that even after graduating, continued education enhances greatly one’s skills, especially in communication. The requirement to have good communication skills has always been emphasized while training underwriters over the years. This is because besides communicating with clients, potential clients and investor underwriters also communicate with agents and other professionals in the insurance industry.

It is always the trend that besides having the relevant skills in terms of academic qualifications and experience, employers will always opt to go for those with outstanding communication skills. The importance of communication skills for underwriters can therefore not be overemphasized.

Job Outlook

Over the years the field of underwriting has been experiencing rapid growth. However, in the recent past this growth has declined considerably. This is attributed to the fact that employers have now become stricter especially in regard to a good command of languages. They are not willing to put their businesses at risk and are thus reluctant to take any person who is below standard as far as communication skills are concerned.

However, the current decline is expected to change and the field is expected to experience even greater growth, since people are taking training of underwriters with more seriousness than in the past. It is also expected that with time the demand for underwriters is likely to increase, as insurance companies have also come to appreciate the vital and key role that underwriters play in the insurance industry.

The strict requirements especially in terms of communication skills have an equally good compensation in terms of remuneration. On average, underwriters earn between $45,000 and $60,000. This however varies, and may go even higher depending on various companies.

Besides good communication skills it is important that one is able to work under pressure and is able to meet deadlines. The communication skills are three fold. This means that one must be able to listen keenly, speak fluently and write in a manner that can be easily understood or comprehended. Good communication skills are thus mandatory for all underwriters.
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 potential customers  responsibility  computers  insurance  theory


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