Build a Strong Underwriting Team.

Resumes don't always identify the best life insurance underwriters. Evaluate candidates as you would any risk.

Effective risk selection begins with effective candidate selection for your underwriting team. Training is also important and should be a priority, but the real challenge is identifying and hiring people who possess the core characteristics of a good underwriter.

Let's start with a basic rule: Not every bright, energetic candidate will be a good underwriter. Learning this by experience is expensive in both training and staff morale. Therefore, the process for selecting good underwriters should be no less rigorous than that followed to select insureds. I suggest following these steps:

Step 1: Identify Characteristics of Good Underwriter

Some managers seek "technicians," analytical types with an underwriting manual tucked in one hand and a calculator in the other. Technical skills are important, but they can be taught, unlike many of the other important characteristics an underwriter must possess.

Some attributes to look for in a candidate include:

* good judgment and ability to deal with "gray" issues;

* strong decision-making skills;

* excellent oral and written communication skills;

* good problem-solving skills;

* flexibility and open-mindedness;

* strong sense of marketing;

* excellent teamwork skills and ability to interact with a variety of personalities; and

* working knowledge of computers and technology.

Step 2: Educate Resume Screeners

Educating your human resources representatives on identifying candidates with ideal underwriter characteristics is very important. Invite recruiters to the underwriting department. Encourage them to talk with experienced underwriters so they learn how the risk-selection function has changed in recent years. Allow them to observe the range of skills used in performing the job. Recruiters will understand that successful underwriters can come from a variety of educational and professional backgrounds, including marketing, communications, nursing and premed. Don't let an inaccurate perception of underwriting prevent you from seeing the candidates you need.

Step 3: Use Interview to Validate Candidate Interest

Once you develop a pool of strong candidates, the next challenge is the interview. It's usually not difficult to determine if applicants truly have the characteristics they claim on their resumes. But how do you know which ones will like the job and stay on your underwriting team?

Few candidates, other than those with insurance experience, have even a vague idea of what underwriting is, and even fewer have underwriting listed as their job objective.The majority interview because "the HR representative thought I might be qualified." How do you sell them on the underwriting career path?

When you interview candidates, include a case underwriter--someone from the "trenches" who can offer a positive, yet realistic, description of the day-to-day duties.

Look for candidates with the interest in and confidence and judgment for making decisions that impact the company's bottom line.These candidates will enjoy the challenge of selling their decisions to producers and will be motivated to develop their skills and knowledge in a respected profession.

Step 4: Offer Training to Build Underwriting Skills

Once selected, the right candidates will need training to turn them into underwriting professionals. Here are some training suggestions:

* Ensure the training is well rounded. Although medical-impairment training is important, there are other important issues, such as financial underwriting, legal aspects of insurance, communication and negotiation techniques. Show trainees what the marketing department does and how products are sold. Help them see how their underwriting decisions fit into the big picture.

* Have new underwriters begin casework early. The best way to learn is by doing. It's not necessary for them to know every disease or physical impairment before picking up a case. But make sure the framework exists for new trainees to receive help on cases beyond their abilities.

* Mentoring is highly worthwhile. To be successful, new underwriters need someone who can guide, encourage and offer advice. Mentoring is more than simply signing off on cases beyond the new underwriter's authority limit. An experienced underwriter can help a trainee develop judgment and communicate decisions effectively.

Companies should choose good candidates and then use training to make them even better.

Greg Linde, a Best's Review columnist, is vice president and chief underwriter at Principal Life Insurance Co., Des Moines, Iowa.