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Explain the difference between underwriters and brokers.

Explain the difference between underwriters and brokers.

Answers

sharon
A broker is a commercial representative who acts as an agent for other parties. Brokers represent insurance companies. A broker might sell insurance for only one company, or may represent several. In addition, a broker may sell several types of insurance, such as auto, health and life. Insurance brokers attempt to gather new clients while serving the needs of existing policyholders, such as helping policyholders with filing and settling claims. An insurance broker will help potential customers evaluate personalized insurance needs and draft a policy to suit the circumstances. Once the application is completed, the underwriter will review the materials.
Underwriters An insurance company that takes on the responsibilities of paying claims on an insurance policy is often called the underwriter. However, an underwriter can be a business or a person. As a career choice, an underwriter is someone who assesses risks for an insurance company. This assessment helps the insurance company determine premiums the policyholder should pay based on the risk. The underwriter may act as an actuary, an insurance statistician who analyzes probabilities based on statistics. From these conclusions, insurance rates are calculated.
Connections
Underwriters decide whether or not a company should approve an applicant for an insurance policy. Insurance underwriters are usually specialists in one type of insurance, such as property and casualty or life insurance. Within property and casualty, the underwriter may focus only on vehicle insurance, or review only applications for homeowners' insurance. According to the U.S. Bureau of Labor Statistics, underwriters connect insurance agents with insurance companies.
Qualifications
Insurance brokers must be licensed in the state in which they conduct business. Each state formulates its regulations concerning insurance. No college degree is required to obtain a license, although many brokers do complete a degree in business, finance or a similar course of study. However, to obtain a license, most states require that candidates complete specialized courses and pass a state exam. Underwriters generally complete bachelor's degrees with an emphasis on mathematics, statistics and economics. Some insurance companies may require underwriters to obtain certification for entry-level positions. Others may consider experience and education alone.
Salaries
According to BLS data, the median annual salary of insurance underwriters, as of May 2010, was $59,290. The top 10 percent, however, earned more than $102,000 annually. Insurance brokers earned a median salary of $46,770, with the top 10 percent earning more than $115,000 per year
sharon kalunda answered the question on April 15, 2019 at 05:47

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