What Does a State Farm Underwriter Do?

State Farm is an insurance and financial services company that provides a wide range of products and services to individuals and businesses. They are one of the largest insurance companies in the United States.

A State Farm underwriter is responsible for evaluating and assessing the risk of potential customers. They review applications and other documents to determine if the customer is eligible for coverage and if the coverage is appropriate for the customer’s needs. Underwriters also review claims to ensure that they are valid and that the customer is eligible for the coverage they are requesting.

State Farm Underwriter Job Duties

A State Farm Underwriter typically has a wide range of responsibilities, which can include:

• Analyze and evaluate insurance applications to determine acceptability of risk
• Review policy forms, endorsements, riders, and other documents for accuracy and compliance with state regulations
• Make decisions on the acceptability of risks based on established underwriting guidelines
• Develop and maintain relationships with agents and brokers to ensure a positive customer experience
• Monitor and review existing policies to identify potential changes in coverage or pricing
• Provide technical support to agents and brokers regarding underwriting procedures and requirements
• Maintain accurate records of all transactions and activities related to underwriting
• Prepare reports and presentations as needed to communicate results and recommendations
• Participate in training sessions and seminars to stay up-to-date on industry trends and best practices
• Assist in developing new products and services to meet changing market needs
• Analyze data from various sources to identify trends and opportunities for improvement
• Work closely with claims department to ensure timely resolution of claims

State Farm Underwriter Salary

The salary of an Underwriter at State Farm is determined by a variety of factors, including experience level, education, and job performance. Additionally, the company’s internal salary structure and the local job market can also influence the salary of an Underwriter. State Farm also considers the individual’s skills and qualifications when determining salary.

• Median Annual Salary: $73,087 ($35.14/hour)
• Top 10% Annual Salary: $99,000 ($47.6/hour)

State Farm Underwriter Job Requirements

To be hired as an Underwriter at State Farm, applicants must have a Bachelor’s degree in a related field such as finance, economics, or business. Previous experience in the insurance industry is preferred, but not required. Applicants must also have strong analytical and problem-solving skills, as well as excellent communication and interpersonal skills. Additionally, applicants must be able to work independently and be comfortable with making decisions. State Farm also requires applicants to have a valid driver’s license and be willing to travel as needed. Finally, applicants must pass a background check and drug test prior to being hired.

State Farm Underwriter Skills

State Farm Underwriter employees need the following skills in order to be successful:

Mortgage Underwriting: Mortgages are a type of loan that allows individuals to purchase real estate. State Farm underwriters may be responsible for reviewing mortgage applications to determine if the applicant has the financial resources to pay back the loan. This involves evaluating the applicant’s credit history, income and debt. State Farm underwriters may also be responsible for reviewing the property to ensure the applicant has the ability to pay back the loan.

Financial Analysis: Financial analysis is the ability to interpret financial data and make informed decisions based on the data. As an underwriter, you use financial analysis to assess the financial stability of a client and determine if they are eligible for a policy. This involves analyzing a client’s income, expenses and debt to determine if they can afford the monthly payments.

Bankruptcy: Bankruptcy is a legal process that allows individuals to eliminate their debt. State Farm underwriters may need to understand bankruptcy laws to assess the risk of lending to customers. They may also need to explain the process to customers and help them understand the implications of bankruptcy.

Credit Risk Assessment: Credit risk assessment is the ability to determine the likelihood that a client will default on a loan. State Farm underwriters use this skill to determine the interest rates they offer to clients. They may also use credit risk assessment to determine which clients to approve for loans and which clients to deny.

Insurance Policies: Understanding the different types of insurance policies and the requirements for each is a necessary skill for an underwriter. State Farm underwriters must be able to read and interpret insurance policies to ensure the company is providing the correct coverage for its customers. This includes knowing the different types of coverage, such as property, liability and life insurance, and understanding the different types of policies, such as auto, health and life.

State Farm Underwriter Work Environment

State Farm underwriters typically work in an office setting, although they may occasionally travel to meet with clients or attend conferences. Underwriters typically work a 40-hour week, although overtime may be required during peak times. Underwriters must be able to work under pressure and meet tight deadlines, as they are responsible for making decisions quickly and accurately. They must also be able to handle a high level of stress, as they are responsible for making decisions that can have a significant impact on the company’s bottom line. State Farm underwriters must also be able to work independently and as part of a team, as they are often required to collaborate with other departments in order to make the best decisions.

State Farm Underwriter Trends

Here are three trends influencing how State Farm Underwriter employees work.

IoT and Sensors

The Internet of Things (IoT) and sensors are becoming increasingly important for State Farm Underwriters. IoT devices can be used to monitor the environment, detect potential risks, and provide real-time data that can help underwriters make more informed decisions.

Sensors can also be used to track customer behavior and preferences, allowing underwriters to better understand their customers’ needs and develop tailored products and services. Additionally, sensors can be used to detect fraud or other suspicious activity, helping underwriters protect their clients from financial losses.

By leveraging these emerging technologies, State Farm Underwriters can gain a competitive edge in the industry and ensure they are providing the best possible service to their customers.

Consumer Behaviour Changes

State Farm Underwriters are tasked with assessing risk and determining the cost of insurance policies. As consumer behaviour changes, underwriters must be able to adjust their assessment process accordingly.

For example, as more people move away from traditional car ownership models and towards ride-sharing services, underwriters must consider how this shift will affect the risk associated with insuring a vehicle. Additionally, as technology advances, underwriters must also consider how new technologies such as autonomous vehicles may impact the risk associated with providing coverage.

By understanding these emerging trends in consumer behaviour, State Farm Underwriters can better assess risk and provide accurate quotes for customers.

Automation

Automation is becoming increasingly important for State Farm Underwriters as they look to streamline their processes and reduce costs. Automated underwriting systems can quickly assess risk, analyze data, and generate quotes in a fraction of the time it would take a human underwriter. This technology also helps to ensure accuracy and consistency across all policies.

In addition, automation allows underwriters to focus on more complex tasks that require greater judgment and expertise. By leveraging automated tools, underwriters can spend less time on mundane tasks and more time providing value-added services such as customer service and policy advice. As automation continues to evolve, State Farm Underwriters must stay up to date with the latest technologies to remain competitive in the industry.

Advancement Prospects

State Farm underwriters typically start out as entry-level underwriters and work their way up to senior underwriter positions. As they gain experience, they may be promoted to positions such as assistant underwriting manager, underwriting manager, or even regional underwriting manager. With additional experience and education, they may also be able to move into positions such as chief underwriter or vice president of underwriting. In addition, underwriters may be able to move into other areas of the insurance industry, such as claims or sales.

Interview Questions

Here are five common State Farm Underwriter interview questions and answers.

1. How would you handle an upset customer?

State Farm is a customer-focused company, so it’s important that you can handle customers with care and respect. Your answer should show the interviewer that you have excellent communication skills and are able to diffuse situations calmly.

Example: “I would first listen to what they had to say and try to understand their concerns. I would then apologize for any inconvenience caused by our mistake or misunderstanding and explain how we plan to fix the situation. If the issue was due to an error on my part, I would offer them compensation in the form of a discount on their next policy renewal.”

2. Are you a self-starter, or do you prefer to be told exactly what duties need to be completed?

This question is designed to determine how you approach your work and whether you can be successful in a role that requires independent thought. When answering, consider the job description and highlight any specific duties or responsibilities that match up with your skills and experience.

Example: “I am definitely a self-starter. I prefer to have direction on what needs to be done but also enjoy having the freedom to complete tasks as I see fit. In my last position, I was responsible for reviewing applications and determining if they were eligible for coverage. If not, I would send them back to the applicant with an explanation of why their claim was denied. If so, I would move forward with underwriting the policy.”

3. Tell us about a time when you struggled with a project and ended up succeeding.

This question can help the interviewer get a better sense of your problem-solving skills and how you react to challenges. Use examples from previous work experiences that highlight your ability to overcome obstacles, adapt to change and learn from mistakes.

Example: “When I first started as an underwriter, I was working on a project where I had to evaluate several different types of insurance policies for clients. One client’s policy required me to look at their driving history, which included multiple speeding tickets within the last year. I initially denied the claim because of this information, but after talking with my supervisor, we decided to reduce the premium by 10% instead. This helped the customer save money while still following company guidelines.”

4. Did you have any leadership roles in college?

This question can help the interviewer get to know you better and understand your leadership skills. If you have had any leadership roles in college, be sure to talk about them during your interview.

Example: “In my senior year of college, I was elected as president of our student insurance association. This role required me to plan events for our members, create budgets and delegate tasks to other members. It also helped me develop strong communication and organizational skills that are beneficial in this position.”

5. Why are you interested in the insurance industry?

This question can help the interviewer get to know you better and understand why you are passionate about this career. It also helps them determine if your personality is a good fit for their company. When answering, try to highlight what attracted you to this industry in the first place.

Example: “I have always been interested in helping others. In high school, I volunteered at an animal shelter where I learned how important it was to protect animals from injury or illness. This inspired me to pursue a career as an underwriter so that I could help people protect their homes and families. I enjoy being able to use my skills to find affordable solutions for clients.”