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What Does an Underwriter Do?<\/h2>\n\n\n\n
Underwriters evaluate risk, but the act of underwriting also has a layer of assuming<\/em> risk. <\/p>\n\n\n\n Take car insurance: Insurance companies want to avoid paying out claims as much as possible \u2014 that’s how they make and keep profits. When underwriting a car insurance policy, the company tries to determine how likely that customer is to file a claim. Customers with a history of accidents are statistically more likely to need to file a claim than those with spotless records. The underwriters attach a price to the risk the company assumes by insuring that customer \u2014 this is the policy premium or how much the customer needs to pay for their coverage. For that reason, lower-risk customers tend to have lower-cost policies. <\/p>\n\n\n\n >>MORE:<\/strong> What Is Underwriting<\/a>?<\/p>\n\n\n\n Underwriting isn’t just for car insurance, though. Underwriters work in all types of insurance, including life, property, pet, and health insurance. Banks also use underwriters to measure risks associated with giving loans and mortgages to consumers. <\/p>\n\n\n\n In investment banking<\/a>, underwriting is slightly different. These underwriters determine how much the bank is willing to pay for tradable securities, like stocks or bonds. The bank then takes a chance when buying securities that it may be unable to resell for a profit. <\/p>\n\n\n\n Underwriters often work in fast-paced, customer-facing environments. They must regularly interact with sales teams, agents, and customers to gather information, assess risk, and determine appropriate coverage and pricing. The role requires strong analytical skills<\/a> as well as effective communication abilities to explain complex insurance products and decisions.<\/p>\n\n\n\n Actuaries use statistics, mathematics, and data science<\/a> to quantify risks in areas like business, finance<\/a>, and insurance. <\/p>\n\n\n\n A typical day as an actuary involves “working with analytical tools such as spreadsheets or statistical modeling software to develop models and analyze information to develop solutions,” says Ken Williams, FCAS, staff actuary at the Casualty Actuarial Society.<\/p>\n\n\n\n Actuaries are especially common in the insurance field, where they study past claims, technological improvements, and economic trends to create models that inform policy approval and pricing decisions. <\/p>\n\n\n\n For instance, an actuary working in car insurance may be responsible for “evaluating recent trends in the frequency of auto accidents to determine needed adjustments to the premiums charged to the company\u2019s policyholders,” says Williams. <\/p>\n\n\n\n They use factors like advancements in airbag safety technology, recent recalls for parts or equipment, and broader changes in driving habits to aid their evaluation. <\/p>\n\n\n\n\t Experience a day in the life working as an actuary at AIG. Develop advanced actuarial skills by completing real-world professional tasks.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tWhere Do They Work?<\/h3>\n\n\n\n
What Does an Actuary Do?<\/h2>\n\n\n\n
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\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tAIG Actuarial Analyst<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t