Insurance underwriters compute the risk of loss, set premium rates, and write policies that cover loss.

Insurance underwriters assess the risk of loss from issuing an insurance policy to individuals. They decide whether or not to insure them.

Underwriters examine applications and the reports that come with them. For example, they may read medical reports or statistical studies. Sometimes they contact insurance agents or other sources to obtain more data.

Underwriters analyze the information in applications and reports. They evaluate whether a risk is likely to result in a loss. Many factors affect their decision, depending on the type of insurance. They may consider a person's financial standing, or the value or condition of property.

If an applicant is a high risk, underwriters may decide not to issue a policy. Another option is to issue a policy, but for a value lower than that requested in the application. Underwriters may also issue a policy, but attach endorsements that limit the company's liability. If they decide to issue a policy, underwriters decide how much to charge.

Underwriters often specialize in one of four major types of insurance:

• Life
• Health
• Mortgage
• Property and casualty

Life and health insurance underwriters may also specialize in group contracts. They analyze the overall make-up of the group to be sure that the total risk is not too high.

Property and casualty underwriters often specialize in one type of risk. For example, they may work with fire, homeowners, or car insurance.

All underwriters review the company's overall pattern of insurance. This way they can see how risk is spread and how different groups are insured. They use this to guide future insurance decisions.