Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
underwriter profession
Market terminology

Underwriter: a profession that helps assess business risks

04.11.2020
2 min read

Underwriter profession: duties and scope of activity

The development of the modern market has led to the emergence of a large number of new, and not all understandable specialties. One of them is an underwriter – a profession that is in demand in banking and insurance. The future of the company – its profitability or unprofitability – depends on the qualification of this person. His duties include assessment of insurance risk for a private person, for example, an apartment or a car. An underwriter studies the probability of various complex situations, and on their basis makes up the amount of insurance payments.
The global financial crisis of 2008 forced many segments to revise their structure and operating principles. Since 2010, the banking sector has followed the Basel III framework. This agreement assumes the use and development of risk management functions, which will help to protect the institution from liquidity decline. Underwriting is an important component of such measures. It is part of the concept of risk management and allows you to see and take control of the complex situations the company may face in the course of its activities.

underwriter profession

In Russia, the profession of underwriter appeared in the early 2000s, and still remains popular and in demand. Demand for it increases the development of the lending segment, the emergence of new programs that require a thorough study of information about the client.
The name of the profession is translated from English as “sign”. Such specialist works in several directions:

  • banking segment;
  • stock market;
  • insurance.

It is the responsibility of the underwriter to take into account as widely as possible various situations that may negatively affect the business or individual. On this basis, the specialist calculates the amount of insurance payment to be made. The underwriter’s professionalism and experience determine how financially successful the company will be. This specialist represents the interests of the insurer, and develops the tariffication of services, determines which case is insurance and which is not.
Underwriting, which operates on the stock market is engaged in management and control of the issue of shares and other securities, is responsible for further actions with them. These functions are taken over by a syndicate of investors, which can be organized for a short period of time. Their main responsibility is to control that the securities will be sold at a value as specified in the agreement.
In the syndicate, the underwriter organizes the process of placing securities on the stock market, interacts with the issuer, controls the movement of shares, options and promissory notes.
At the bank, a specialist in this profession assesses how reliable the client is. He makes a forecast based on two parameters: solvency and credit history. Underwriter can make his recommendations to the bank – offer different loan options that will reduce the risk of non-payment. The decision remains with the financial institution – to refuse the loan or to formalize cooperation with the client.

Tags: Market terminology
0
Previous Post German GDP growth forecast: analyst review Next Post Investors demand for the dollar drops: overview from Chaslau Koniukh

You Might Also Like

index option: its types
Market terminology
Index option: types and features
07.08.2022
free float
Market terminology
What is the Free Float coefficient
23.05.2021
Bid and Ask
Market terminology
Bid and Ask: rules for using them to manage trades
08.09.2022
How to fill in the investment declaration
Market terminology
How to fill in the investment declaration: detailed instructions
14.11.2020
buyback
Market terminology
Buyback: tasks and goals of share buyback
12.11.2022
free margin
Market terminology
Free margin and leverage: basic concepts on the Forex exchange
17.07.2020

Recent Posts

  • 1Forex drawdown
    Forex drawdown and why you shouldn’t be afraid of it
    22.09.2023
  • 2investment in Turkey's steel industry
    Yıldız increases investment in the Turkish steel industry
    20.09.2023
  • 3Abu Dhabi Exchange
    The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
    18.09.2023
  • 4mobile marketing
    How mobile marketing helps to retain existing customers and attract new ones
    16.09.2023
  • 5E-commerce company Rakuten
    Japan’s Rakuten intends to raise funds by issuing shares
    14.09.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

Forex drawdown
Forex drawdown and why you shouldn’t be afraid of it
22.09.2023
investment in Turkey's steel industry
Yıldız increases investment in the Turkish steel industry
20.09.2023
Abu Dhabi Exchange
The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
18.09.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023
  • IMF forecast: what is expecting the world economy next year
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics