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Underwriter Interview Questions

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

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Whether you are preparing to interview a candidate or applying for a job, review our list of top Underwriter interview questions and answers.

  1. On what conditions would you decline an insurance application? See answer
  2. What underwriting software programmes do you have experience using? How do they make you more efficient? See answer
  3. Describe LTV ratios and their application in your daily routine. See answer
  4. How would you improve our current underwriting process? See answer
  5. How would you ensure to spot and manage risky claims in a loan application? See answer
  6. Describe a time your company took an underwriting loss. What caused the loss? See answer
  7. What current underwriting certifications do you have? See answer
  8. Describe the application of mathematics and statistics to your role requirements. See answer
  9. How do you maintain attention to detail when reviewing several applications? See answer
  10. What measures would you put in place to protect the company from future regulations that could affect any agreements you make? See answer
  11. What’s your strategy for analyzing risks associated with insuring persons or assets?
  12. Tell us about some commercial insurance disputes you’ve encountered with clients and colleagues as an underwriter.
  13. How would you go about verification of buyer’s funds during a loan granting process?
  14. How would you figure out an applicant’s income and total spending?
  15. How do you handle disagreements between colleagues?
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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines

15 Underwriter Interview Questions and Answers

On what conditions would you decline an insurance application?

The conditions stated by the candidate for declining an insurance application are a clear indicator of their meticulousness in the application process. A stellar candidate should be able to review and evaluate the application process properly before declining an insurance application. What to look out for in an answer:

  • Mention of proven methods for evaluating insurance applications
  • Research skills
  • Attention to detail

Example:

“The presence of all forms of potential risks on the financial records is a major thing I look out for before declining the application. Potential risks include pending charges on the financial records and detection of financial fraud in the application process.”

What underwriting software programmes do you have experience using? How do they make you more efficient?

The underwriter manages all claims brought to the table of the insurance company. They need to be savvy in latest underwriting computer techniques for effectively analyzing risks and determining who they can approve at a low risk. What to look out for in an answer:

  • Clear understanding of the relevance of software programmes to efficiency
  • Mention of acquisition and analysis of data
  • Familiarity with specific software commonly used by underwriters

Example:

“The most important aspect of my job is gaining data and using them for my analysis. I usually carry out my job more effectively with computer software like SQL, Netsuit, and SAP for quote comparison, data management, and customer behaviour.”

What's your strategy for analyzing risks associated with insuring persons or assets?

This question tests the risk assessment skills and strategies of the candidate. This is because they have the responsibility of making informed decisions about either insuring an asset or a person. The candidate must possess the right attitude towards risk management components that favour your company's policies and regulations. What to look out for in an answer:

  • Ability to develop effective insurance plans
  • Critical thinking
  • Knowledge in risk components

Example:

“My key strategy about risk analysis operates on a strict policy about attention to detail. I believe there's no better way to analyse risks than going over the files multiple times to identify the important details.”

Describe LTV ratios and their application in your daily routine.

The loan-to-value (LTV) ratios are mortgage lending determinants for getting the right amount of payment between the applicant and the company. The candidate's response helps you see their knowledge of this lending assessment risk concept, and how they can apply it to their primary duties. What to look for in an answer:

  • Clear understanding of LTV ratios
  • Experience applying LTV ratios in making decisions
  • Application of LTV ratios

Example:

“LTV ratios means Loan-to Value ratios. It is a major risk-assessment parameter used to access mortgages. To determine the LTV ratio of any organisation or persons, I simply divide the mortgage amount by the appraised property value.”

Tell us about some of the commercial insurance disputes you've encountered with clients and colleagues as an underwriter.

You'll gain insights into the candidate's experience with work relationships through the candidate's response to this question. It provides insight into how familiar the candidate is with common conflicts specific to the role of an underwriter. What to look for in answer:

  • Professionalism
  • Interpersonal skills
  • Experience handling common disputes associated with the role of an underwriter

Example:

“Some of the most common commercial insurance disputes include coverage limits and exclusions and loss assessments. I have realised that these issues occur because of differing perspectives on contract wording, interpretation, and valuations. Therefore, I've made it a major part of my routine to ensure there are no discrepancies or room for interpretation in all documents before committing to any agreements.”

How would you improve our current underwriting process?

Underwriting is an important insurance process. The process involves rigorous processes involving historical data and customer information. This question helps you test if the candidate is innovative enough to come up with new ways to optimise the processes. What to look for in an answer:

  • Mention of digital process automation or other efficiency improvements
  • Innovation and creative thinking
  • Evidence of research about company processes

Example:

"I had a look at the current underwriting processes and observed that it was a very long process. It requires users to search for data manually and information is stored in disparate systems. To improve the process, I'd suggest the introduction of digital process automation."

How would you ensure to spot and manage risky claims in a loan application?

This question helps you see if your potential hire has what it takes to review a loan application properly to protect your firm in the best way possible. What to look for in an answer:

  • Industry experience
  • Efficient communication and interrogatory skills
  • Ability to oversee quality control

Example:

"I would study their financial history to access their record of settling charges on time. I'll also ensure that the clients understand the terms and conditions of the agreement."

How would you go about verification of buyer's funds during a loan granting process?

Verification of buyer's funds is a common challenge faced by underwriters. Therefore, you need to know if the candidate has solutions to handle some situations they would come across in their daily activities. What to look for in an answer:

  • Problem-solving skills
  • Ability to draw on experiences
  • Display of underwriting skills

Example:

"To verify buyer's funds I always ensure to request for the buyer's bank statements and verify all large deposits on their statements of account. I also try to maintain a relative balance between how much they make and how much they're depositing."

Describe a time your company took an underwriting loss. What caused the loss?

Underwriting losses are often because of inefficient underwriting processes in a company. If the candidate has experienced an underwriting loss before and can identify the causes, they are likely to know how to avoid them in the future. What to look for in an answer:

  • Understanding of underwriting losses
  • Experience in a similar role
  • Ability to learn from mistakes and experience

Example:

"The insurance company I previously worked at was once in a tight competition with another underwriting company. That year, we took an underwriting loss as we worked to gain market share. This loss was because we were willing to pay more claims than we could handle. Our administrative cost also increased because of the increased market share, causing the loss."

What current underwriting certifications do you have?

The underwriting training and certifications which the candidate has gone through helps you understand their operating capacity. What to look for in an answer:

  • Underwriting experience
  • Mathematics, economics, and finance knowledge
  • Mention of relevant certifications

Example:

"I hold the certification for the Certified Residential Underwriter (CRU) from the Real estate institute of Canada (REIC). I have also successfully taken the LLQP Insurance course from the Canadian Securities Institute. However, I value the on-the-job training I have undergone for the past five years to remain relevant."

Describe the application of mathematics and statistics to your role requirements.

Being an underwriter is about finding the best rates profitable to an insurer in covering a risk. Statistics, probability, and mathematics are important for determining these rates. The candidate should be able to demonstrate strong mathematics skills. What to look for in an answer:

  • Ability to calculate risks
  • Description of the relevance of mathematics to their role
  • Analytical skills

Example:

"My job is to put my company in a strong position when an applicant files a claim. Over the years, my strong analytical and mathematical skills as helped me calculate the odds of an applicant filing a claim. It has also helped me in determining the best rate. Therefore, I can't perform my duties optimally without mathematics and statistics."

How do you maintain attention to detail when reviewing several applications?

An essential skill that the ideal candidate should have is the ability to pay attention to detail even when under a lot of pressure. This question helps you see how detail-oriented the candidate is even under pressure. What to look for in an answer:

  • Attention to detail
  • Ability to work under pressure
  • Strategy for finding information

Example:

"I'm always able to remain calm when working under pressure. I never sacrifice quality for quantity, and take steps to ensure I can focus even when processing several applications in a day. I have created a standardised checklist of things to review on each application. I always ensure I limit distractions and sit in a quiet office so I can give each application my full attention."

How would you figure out an applicant's income and total spending?

Knowing the applicant's income and total spending is important in determining the level of risks to cover. This question assesses the candidate's skills and experiences and how they can apply those skills to solve a problem. What to look for in an answer:

  • Brief explanation on how to calculate DTI ratio
  • Analytical skills
  • Ability to apply basic underwriting skills

Example:

"To figure out an applicant's income and total spending, I calculate their debt-to-income (DTI) ratio after requesting their credit history."

What measures would you put in place to protect the company from future regulations that could affect any agreements you make?

This allows you to find out how proactive the candidate is. It also helps you know if the candidate can research extensively about essential information for contracts which might change at a later time. What to look for in an answer:

  • Ability to stay updated
  • Research skills
  • Evidence that candidate is proactive

Example:

"I know that regulations and legal standards are being updated regularly. One thing I do to keep the company protected is to stay updated and get to know of these regulations, so I can take action promptly."

How well do you work in a team of other underwriters?

Underwriters typically process applications on their own. However, some applications require multiple underwriters to work together. They also share an office space with other underwriters and work together as a team to reach company goals. This question assesses whether the candidate is a team player. What to look for in an answer:

  • Ability to build professional relationships
  • Strong interpersonal and communication skills
  • Teamwork and collabouration

Example:

"I enjoy working both individually and as a team. I enjoy time alone so I can focus on processing my own applications. However, I also enjoy collabourating with my teammates on larger projects. I like to foster professional relationships built on trust, so my colleagues feel like they can come to me for help or a second opinion."

Three individuals are sitting at a table with a laptop, a disposable coffee cup, notebooks, and a phone visible. Two are facing each other, while the third’s back is to the camera. The setting appears to be a bright room with large windows.

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