What does a Commercial Underwriter do?

A commercial underwriter is a professional in an organization who makes decisions about property and policy risks. The underwriter is responsible for ensuring that a company makes smart financial decisions that will contribute to a higher quality of business. This involves evaluating business risks and decisions that could have a large impact on the company as a whole. It is also the duty of a commercial underwriter to investigate relationships that the business makes with other businesses or individuals. These relationships can have long-term positive or negative effects on the company, so their evaluation at the outset by an experienced professional is crucial.

Commercial underwriters also look at liability policies. Potential losses and gains must be weighed carefully; as this can easily turn into a betting game, the underwriter should rely on the help of data that charts policy trends over the last several years. Using these statistics, current knowledge of the company and the training he or she has received, the commercial underwriter should come to a solid, well-researched decision regarding the policies of the company and the impacts these policies will have on its future. Typical commercial underwriter jobs involve inspecting physical conditions of the business’s property, asking about inspection policies and researching the benefits and drawbacks of these, assisting with real estate and equity structures, analyzing rent and income statements, preparing loan submission packages, aligning commercial risks with business practices and standards, finalizing policy contracts and forms and interpreting coverage forms.

A commercial insurance underwriter works with claims in the wake of a financial or natural disaster. This type of underwriter works with insurance companies to work out premiums based on the risk and property involved in the disaster. He or she draws up all the paperwork, policy outlines and insurance applications. A commercial insurance underwriter ensures that an insurance applicant meets the requirements as set by the company.

A commercial underwriter should obtain a bachelor’s degree in business administration, finance or accounting. Commercial underwriting involves the ability to solve complex problems easily and make quick decisions. The ability to communicate efficiently both orally and in written form is also critical. A commercial underwriter may work independently on some projects and join forces with a larger group of colleagues on other tasks, so he or she should feel comfortable working alone and with a team. Organizational and motivational skills are also helpful, and statistics in this industry show that commercial underwriters who have strong computer skills are more likely to land jobs in this field.