Feature -- by Mark Sproxton

Two hours of back and forth on the phone, now the work begins. A new trucking company in the city has come seeking insurance. For the underwriter, this means lots of investigation, evaluation, number crunching and discussion.

"I spend a ton of time on the phone," said Krista Woodson, a senior commercial auto underwriter in Calgary. "Seventy-five per cent of our day is spent assessing risk. We'll look at claims history, hiring practices, what kind of loss do we see them having. If they are handling dangerous goods, are coverages adequate? Is the price adequate for the risk and can you make money at it? And there is a lot of communication with the broker."

An underwriter is the person working at an insurance company who uses risk assessment schedules and charts to determine whether or not a person or business is granted an insurance policy. At times, an insurance policy is designed by a broker, who works at a brokerage, and then has to be reviewed by the underwriter. The submitted information will be used in conjunction with figures produced by insurance actuaries. The underwriter decides if the person or business can be insured, and how much the policy will cost. The policy is then returned to the broker to offer to the company and the negotiation begins.

While Woodson admits the negotiations are part of what she likes most about the work, sometimes those discussions can call upon other helpful skills. "You definitely can't take things personally," she said. "There is a lot of negotiation. Because insurance is a lot about price, even though it shouldn't be, you've got to make sure you keep it on a business level."

A commercial insurance policy ensures coverage for building and contents in case of an accident such as a fire.

Woodson said that unfortunately those same people skills, and thick skin, can also be required in her personal life. "(One) dislike is the public's perception of the industry, and that's a general comment. People find out you work in insurance and the first thing you hear is 'how I got screwed on this....' That can be hard. We're necessary and we can be there to help out."

None of the good or the bad surprises her anymore. She has worked in various capacities in the insurance industry for 12 years moving from a personal insurance broker, to high-risk facilities underwriter and eventually into her current position as a commercial auto underwriter where she has been for about seven-and-a-half years. "Back then people didn't make plans to get into insurance, they stumbled into it as I did," Woodson said. "My mom was working in the industry and she suggested I apply for a position as a broker. Now, more and more people are getting into it because they want to."

Working in the industry, Woodson took the courses required to earn her chartered insurance professional (CIP) title. She is currently pursuing her certified risk manager (CRM) designation as well. There are no standard education requirements for underwriters beyond a high school diploma, but there are insurance-related programs offered through post-secondary institutions that can ease entry into the industry. Industry experience will likely be required before moving into an underwriting position.

"If this is something you're seriously looking at getting into, I don't think you can have enough education," Woodson said. "You need good writing skills, you need to be able to negotiate and you do need math skills. We work with numbers all day but it's not like we have to do logarithms all day. Continue your education. Look into law, accounting or management courses."

Pay rates and scales for underwriters will vary greatly depending on the company and your experience. Typically underwriters are paid a salary, while brokers earn a commission. The hours of work also fluctuate from company to company. Woodson, who works for a large property and casualty (P&C) company -- essentially they sell everything but life and health insurance policies -- works about seven-and-a-half hours each day from Monday to Friday. As networking is common, and important in the insurance industry, she said it's not uncommon to find herself out after hours meeting face to face to with clients and others in the industry.

As the industry is so varied, the number of different positions available are many. There are even specializations within careers. For instance, Woodson is a commercial auto underwriter, but there are also insurance underwriters for personal policies, for example. "This is a very diverse type of business," she said. "There's never a dull moment. You can never learn it all. And that makes it interesting."