"Insurance companies depend on underwriters to review insurance applications and determine whether they qualify for acceptance. Employers are looking to hire candidates with strong analytical and organizational skills and experience with computer software. In an interview context, expect to answer technical questions such as evaluating risk as well as behavioral questions that will assess your ability to work on a team and resolve difficult problems. To test your quantitative skills, an interviewer may through in a brain teaser."
Picture a line graph representing the entire book of business with the age of accounts listed on the x-axis and the average loss ratio on the y-axis. This type of graph tends to have high loss ratios in years 1 and 2 and then depict a decreasing trend in successive years. Why do you feel that this is the case?
Accounts with losses in years one or two tend to self-select to other carriers due to increasing premium or get non-renewed. This creates a declining trend after poor loss history in years one or two.