Tasks underwriter for an insurance company

Tasks underwriter for an insurance company


Underwriter describes, evaluates and classifies the risk. Underwriter - a person whose signature is to literally worth millions.

Underwriter - a specialist in the field of insurance. Literally, "underwriter" means "signature on the risk." Underwriter describes, evaluates and classifies the risk, forms the insurance portfolio.

The duties of the underwriter enters Sight on behalf of the insurer's insurance contracts, acceptance for insurance (reinsurance) offered insurance risks, qualification of risk in taking on the insurance of a particular object or person, the determination of tariff rates and the specific conditions of the insurance contract, drawing conclusions about the possibility (or impossibility) conclusion of the contract of insurance under certain conditions, the formation of an insurance (reinsurance) portfolio.

Underwriter shall have the knowledge to assess the risks of personal and property insurance, know the principles of the insurance portfolio, legal aspects of insurance, financial stability of the insurance organization, budgeting, insurance reserves, reinsurance underwriting, claims handling. Underwriter - a person whose signature is to literally worth millions.

Qualifications - higher legal education.

Underwriter not only enters into transactions on the primary sale of securities of the issuer, but also participates in the preparation of the issuer, and accompanies the process of registration of the issue in the Securities Commission. However, the main task of the underwriter, of course, is the placement of securities among pre unspecified persons.

Depending on the market situation and the characteristics of the issuer, with the underwriter may be concluded two types of agreements:

    "Firm commitment» (Firm Commitment), which is a commitment to buy back the underwriter of the securities of the Issuer that will not be sold to third parties;
    «Best effort» (Best Efforts Agreement), contains no obligation to buy back unsold underwriter of the securities.

In a literal translation from angl.anderrayter - "the undersigned". Guarantor, surety, taking on a commitment to place a certain number of newly issued shares, bonds, and securities by buying them for subsequent sale to investors. The insurance - a person authorized by the insurance company to take all kinds of risks. Underwriter is responsible for the formation of the insurance portfolio. Two or more underwriters often form a syndicate, when placing the guarantor of the securities issue.

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