Underwriters are the guardians of financial risk for insurance companies, banks, and lending institutions. They play a critical role in evaluating and analyzing risk factors to determine appropriate coverage, rates, or loan approvals. The best underwriters combine analytical prowess with sound judgment to make decisions that protect their organization while still providing opportunities for profitable business relationships.

When interviewing candidates for an Underwriter position, you're looking for someone who can thoroughly assess risk, analyze complex data, maintain attention to detail, and make sound decisions even with incomplete information. The role requires both technical expertise and strong interpersonal skills to negotiate and communicate decisions to various stakeholders.

Behavioral interviews allow you to move beyond technical qualifications and assess how candidates have handled real situations that mirror the challenges they'll face in your organization. By focusing on past experiences rather than hypothetical scenarios, you'll get a more accurate picture of how candidates actually behave when facing underwriting challenges.

To conduct effective behavioral interviews for underwriters, listen carefully for specific examples that demonstrate analytical thinking, decision-making processes, and risk assessment approaches. Follow up with probing questions to understand their thought process and how they balanced competing priorities. Pay attention to how they learned from both successes and failures, as continuous learning is essential in this ever-evolving field.

Interview Questions

Tell me about a time when you had to analyze a particularly complex or unusual risk scenario. What was your approach, and how did you reach your decision?

Areas to Cover:

• The specific nature of the complex risk scenario
• How they gathered and analyzed relevant information
• Their methodology for evaluating the risk
• How they weighed different factors and considerations
• Any tools or resources they used to support their analysis
• The decision they ultimately reached and the rationale behind it
• How they communicated their decision to relevant stakeholders

Follow-Up Questions:

• What made this particular scenario more challenging than your typical cases?
• Were there any precedents or guidelines you could follow, or did you need to create a new approach?
• How did you validate your analysis before making a final decision?
• In retrospect, would you have approached this scenario differently? Why or why not?

Describe a situation where you had to deny coverage or a loan that others thought should be approved. How did you handle the situation?

Areas to Cover:

• The specific circumstances of the case
• The red flags or concerns they identified
• How they gathered evidence to support their decision
• How they communicated their decision to others who disagreed
• How they managed the interpersonal aspects of the situation
• The outcome of the situation
• Any lessons learned from the experience

Follow-Up Questions:

• What specific factors led you to your decision?
• How did you prepare for potential pushback on your decision?
• How did you balance maintaining relationships with upholding underwriting standards?
• Were there any compromises or alternative solutions you considered?

Tell me about a time when you spotted a detail in an application that others had missed. What was it, and what difference did it make?

Areas to Cover:

• The specific detail they noticed and why it stood out
• The context of the application or case
• How they verified the significance of the detail
• How they brought attention to the issue
• The impact this discovery had on the underwriting decision
• How they implemented this lesson in future work
• Any processes they created or improved as a result

Follow-Up Questions:

• What made you notice this detail when others had missed it?
• How did this experience influence your review process going forward?
• How did others respond when you pointed out the missed detail?
• Have you developed any techniques or habits to ensure you catch important details?

Describe a situation where you had to make an underwriting decision with incomplete information. What was your approach?

Areas to Cover:

• The circumstances that led to having incomplete information
• Their process for evaluating what information they did have
• How they assessed the significance of the missing information
• The steps they took to obtain additional information, if any
• How they made their final decision despite the limitations
• The outcome of their decision
• How they documented their decision-making process

Follow-Up Questions:

• How did you determine which information was essential versus nice-to-have?
• What risk mitigation strategies did you employ given the information gaps?
• How did you communicate the limitations in your analysis to stakeholders?
• What would you have done differently if you had more time or resources?

Tell me about a time when regulations or policies changed, and you had to quickly adapt your underwriting approach. How did you manage the transition?

Areas to Cover:

• The specific regulatory or policy change they faced
• How they learned about and interpreted the changes
• Steps they took to update their knowledge and skills
• How they implemented the new requirements in their work
• Any challenges they faced during the transition
• How they helped others understand and adapt to the changes
• The impact of the changes on their underwriting decisions

Follow-Up Questions:

• How did you ensure you fully understood the implications of the changes?
• What resources did you use to stay informed about the changes?
• How did you balance maintaining productivity while implementing new procedures?
• What feedback did you receive about how you handled the transition?

Describe a time when you had to balance multiple high-priority underwriting cases simultaneously. How did you manage your workload and ensure quality?

Areas to Cover:

• The context and nature of the competing priorities
• Their approach to organizing and prioritizing the workload
• Specific time management techniques they employed
• How they maintained attention to detail despite the pressure
• Any delegation or collaboration involved
• How they communicated with stakeholders about timelines
• The outcome of their efforts and any lessons learned

Follow-Up Questions:

• What criteria did you use to prioritize the different cases?
• How did you ensure you weren't sacrificing quality for speed?
• Were there any tools or systems you used to stay organized?
• How did you handle unexpected issues that arose during this busy period?

Tell me about a time when you made an underwriting decision that you later regretted. What happened, and what did you learn from it?

Areas to Cover:

• The specific underwriting decision they made
• The context and reasoning behind their original decision
• How they discovered the decision was suboptimal
• The consequences of the decision
• How they addressed or mitigated any negative outcomes
• Specific lessons they learned from the experience
• How they applied these lessons to subsequent decisions

Follow-Up Questions:

• Looking back, what were the early warning signs you might have missed?
• How did you take responsibility for the outcome?
• What changes did you make to your decision-making process afterward?
• How has this experience influenced your approach to similar situations?

Describe a situation where you identified a pattern or trend in applications or claims that led to an important insight for your organization.

Areas to Cover:

• How they noticed the pattern or trend
• The data or observations that supported their insight
• The process of analyzing and validating their findings
• How they communicated their insights to others
• The actions taken based on their observations
• The impact of their insight on the organization
• How they continued to monitor and refine their understanding

Follow-Up Questions:

• What first alerted you to this pattern?
• What tools or methods did you use to analyze the data?
• How did you convince others of the validity of your insight?
• Have you applied this same analytical approach to other areas of your work?

Tell me about a time when you had to collaborate with other departments to make an underwriting decision. How did you navigate the different perspectives?

Areas to Cover:

• The specific situation and departments involved
• Their approach to gathering input from different stakeholders
• How they handled differing opinions or priorities
• The communication methods they used
• How they built consensus or made a decision despite disagreements
• The outcome of the collaboration
• Lessons learned about cross-departmental work

Follow-Up Questions:

• What challenges did you face in getting everyone on the same page?
• How did you ensure all relevant perspectives were considered?
• Were there specific techniques you used to facilitate productive discussions?
• How did this experience change how you approach cross-departmental collaboration?

Describe a situation where you recommended approving a case that had some red flags but also significant potential. What was your rationale?

Areas to Cover:

• The specific red flags they identified
• The positive factors that outweighed those concerns
• Their risk analysis and decision-making process
• Any conditions or modifications they attached to the approval
• How they documented and justified their decision
• The outcome of the case
• How they monitored the situation after approval

Follow-Up Questions:

• How did you quantify or evaluate the potential upside against the risks?
• What specific conditions or controls did you put in place to mitigate the risks?
• How did you communicate your rationale to others in the organization?
• Would you make the same decision again given the same circumstances? Why or why not?

Tell me about a time when you had to review and evaluate a large volume of information under a tight deadline. How did you ensure accuracy while maintaining efficiency?

Areas to Cover:

• The specific nature of the project and deadline
• Their approach to organizing and prioritizing the information
• Techniques they used to maintain attention to detail
• How they identified key information versus less critical details
• Any tools or systems they used to manage the data
• How they validated their work for accuracy
• The outcome of their efforts

Follow-Up Questions:

• How did you determine what information was most critical to focus on?
• What techniques did you use to stay focused and avoid errors?
• How did you handle unexpected issues that arose during this project?
• What would you do differently if faced with a similar situation in the future?

Describe a time when you had to explain a complex underwriting decision to someone without technical knowledge. How did you approach this communication challenge?

Areas to Cover:

• The specific decision they needed to explain
• Their assessment of the audience's level of understanding
• How they prepared for the communication
• Specific techniques they used to simplify complex concepts
• How they checked for understanding
• Any visual aids or analogies they employed
• The outcome of the communication

Follow-Up Questions:

• How did you determine the appropriate level of detail to include?
• What feedback did you receive about your explanation?
• How did you handle questions or points of confusion?
• How has this experience influenced your approach to similar communications?

Tell me about a situation where you identified an opportunity to improve an underwriting process or policy. What did you do?

Areas to Cover:

• The specific process or policy they sought to improve
• How they identified the opportunity for improvement
• The research or analysis they conducted
• How they developed their proposed solution
• The steps they took to advocate for the change
• Any resistance they encountered and how they addressed it
• The outcome and impact of the improvement

Follow-Up Questions:

• What data or evidence did you gather to support your proposed changes?
• How did you get buy-in from stakeholders or decision-makers?
• What challenges did you face during implementation?
• How did you measure the success of the improvement?

Describe a time when you had to make a difficult underwriting decision that balanced risk management with business growth objectives.

Areas to Cover:

• The specific situation and competing priorities
• How they gathered relevant information from both perspectives
• Their process for evaluating and weighing different factors
• How they involved other stakeholders in the decision
• The eventual decision and its rationale
• How they communicated and implemented the decision
• The outcome and any lessons learned

Follow-Up Questions:

• What criteria did you use to evaluate both the risk and growth potential?
• How did you handle disagreements about the appropriate balance?
• In retrospect, do you think you struck the right balance? Why or why not?
• How has this experience influenced your approach to similar decisions?

Tell me about a time when you had to quickly learn about a new industry, product, or market to make effective underwriting decisions.

Areas to Cover:

• The specific knowledge gap they needed to address
• Their approach to acquiring the necessary information
• Resources they utilized for learning
• How they validated their understanding
• How they applied their new knowledge to underwriting decisions
• Any challenges they faced during this learning process
• The outcome of their efforts

Follow-Up Questions:

• What learning strategies did you find most effective?
• How did you prioritize what information was most important to learn?
• How did you know when you had sufficient understanding to make sound decisions?
• How has this experience changed your approach to learning about new areas?

Frequently Asked Questions

What's the difference between behavioral interview questions and technical questions for underwriters?

Technical questions assess specific knowledge about underwriting principles, risk assessment methodologies, and industry-specific regulations. Behavioral questions, on the other hand, explore how candidates have applied their knowledge and skills in real situations, revealing their thought processes, decision-making abilities, and interpersonal skills. A comprehensive interview should include both types of questions to fully evaluate a candidate's potential for success.

How many behavioral questions should I include in an underwriter interview?

Most effective interviews include 3-5 behavioral questions, allowing time for thorough responses and follow-up questions. Quality is more important than quantity—it's better to deeply explore a few relevant scenarios than to superficially cover many topics. Each behavioral question, with proper follow-up, typically takes 5-10 minutes to thoroughly explore.

How can I tell if a candidate is giving authentic answers versus rehearsed responses?

Look for specificity in their answers—authentic responses include particular details, challenges, and lessons learned. Ask unexpected follow-up questions to probe deeper; prepared candidates can usually provide additional context when pressed. Watch for consistency in their storytelling and whether emotional responses match the content. Authentic answers tend to include both successes and failures, while overly rehearsed responses often sound too perfect.

How should I evaluate underwriter candidates who come from different industries?

Focus on transferable skills like analytical thinking, attention to detail, decision-making, and risk assessment rather than industry-specific knowledge. Ask follow-up questions that help you understand how their past experiences relate to underwriting challenges. Consider creating a structured interview scorecard with competencies that matter across industries, and give candidates the opportunity to explain how their background prepares them for the role.

Should I give candidates the behavioral questions in advance?

There are pros and cons to this approach. Providing questions in advance can yield more thoughtful, comprehensive responses and reduces interview anxiety. However, spontaneous responses can reveal how candidates think on their feet—an important skill for underwriters. A middle ground might be to share the competency areas you'll be exploring without providing the exact questions. This gives candidates a framework for preparation while still allowing for authentic responses.

Interested in a full interview guide for a Underwriter role? Sign up for Yardstick and build it for free.