Insurance rating analyst

Insurance rating analyst article illustration


Insurance rating analysts analyse information related to insurance markets and their credit rating, prepare rating reports and invoices, compile financial data, and present and explain credit rating opinions to stakeholders, clients, and external parties. They work for insurance companies and calculate the insurance premium and rates for their clients using manual and automated methods.

Insurance rating analysts typically do the following:

  • Evaluate the risk associated with insuring different individuals, businesses, or assets.
  • Analyze historical data, industry trends, and relevant statistics to assess risk factors.
  • Assist underwriters in determining appropriate premiums based on risk analysis.
  • Develop and update rating models and methodologies to establish premium rates.
  • Research and analyze competitor rates and market trends to ensure competitiveness.
  • Ensure that premium rates comply with regulatory requirements and standards.
  • Contribute to the development of insurance policies and coverage options.
  • Work closely with underwriters, actuaries, and other teams to align rating strategies.
  • Maintain accurate records of rating methodologies, calculations, and compliance efforts.
  • Communicate rating decisions and analysis findings to relevant stakeholders.

Other titles

The following job titles also refer to insurance rating analyst:

insurance analyst
insurance rater
insurance assessors
insurance assessor
insurance raters
insurance analysts

Working conditions

Insurance Rating Analysts typically work in insurance companies, underwriting agencies, or other financial institutions in the insurance sector. The role involves a combination of office work, data analysis, and collaboration with various teams, including underwriting and actuarial teams. The workload may vary based on the size and scope of the insurance operations.

Minimum qualifications

A bachelor’s degree in finance, mathematics, actuarial science, or a related field is commonly required for Insurance Rating Analyst positions. Relevant certifications, such as those from the Insurance Institute, can enhance qualifications. Strong analytical skills, attention to detail, and proficiency in statistical analysis tools are crucial. Practical experience gained through internships or entry-level positions in insurance or underwriting functions contributes to the development of Insurance Rating Analysts. Continuous learning, staying updated on industry regulations, and obtaining relevant certifications contribute to the ongoing success of professionals in this specialized field.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Insurance rating analyst is a Skill level 4 occupation.

Insurance rating analyst career path

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Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of insurance rating analyst.

  • Insurance law: The law and legislation concerning the policies of transferring risks or losses from one party, the insured, to another, the insurer, in exchange for a periodic payment. This includes the regulation of insurance claims and the business of insurance.
  • Principles of insurance: Understand the principles of insurance, including third-party liability, stock and facilities.
  • Actuarial science: The rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.
  • Credit control processes: The various techniques and procedures applied to ensure that credit is given to suitable customers and that they pay on time.
  • Insurance market: The trends and major driving factors in the insurance market, insurance methodologies and practices, and identifying the major stakeholders in the insurance sector.
  • Types of insurance: The various types of risk or loss transfer policies that exist and their characteristics, such as health insurance, car insurance or life insurance.

Essential skills and competences

These skills are necessary for the role of insurance rating analyst.

  • Analyse loans: Examine and analyse the loans provided to organisations and individuals through different forms of credit such as overdraft protection, export packing credit, term loan, and purchase of commercial bills.
  • Prepare credit reports: Prepare reports that outline an organisation’s likelihood of being able to repay debts promptly, meeting all the legal requirements linked to the agreement.
  • Synthesise financial information: Collect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.
  • Examine credit ratings: Investigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.
  • Obtain financial information: Gather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.
  • Advise on financial matters: Consult, advise, and propose solutions about financial management, such as acquiring new assets, incurring in investments, and tax efficiency methods.
  • Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover those risks.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of insurance rating analyst. However, mastering this knowledge allows you to have more opportunities for career development.

  • Statistics: The study of statistical theory, methods, and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data, including the planning of data collection in terms of the design of surveys and experiments in order to forecast and plan work-related activities.
  • Debt systems: The processes needed to obtain goods or services before payment and when a sum of money is owed or overdue.
  • Modern portfolio theory: The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of insurance rating analyst. However, mastering these skills and competences allows you to have more opportunities for career development.

  • Apply credit risk policy: Implement company policies and procedures in the credit risk management process. Permanently keep the company’s credit risk manageable and take measures to avoid credit failure.
  • Advise on risk management: Provide advice on risk management policies and prevention strategies and their implementation, being aware of different kinds of risks to a specific organisation.
  • Advise on credit rating: Share your expertise in the evaluation process that assesses the debtor’s ability, be it a government institution or a business, to pay back its debt.
  • Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
  • Create credit policy: Create guidelines for a financial institution’s procedures in supplying assets on credit, such as the contractual agreements that have to be made, the eligibility standards of prospective clients, and the procedure for collecting repayment and debt.
  • Communicate with banking professionals: Communicate with professionals in the field of banking in order to obtain information on a specific financial case or project for personal or business purposes or on behalf of a client.
  • Create cooperation modalities: Prepare, determine and agree on the conditions for cooperation contracts with a company, by comparing products, following evolutions or shifts in the market and negotiating terms and prices.
  • Analyse financial performance of a company: Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.
  • Promote financial products: Inform existing or potential customers about the various financial goods and services that are offered by the company.
  • Perform debt investigation: Use research techniques and tracing strategies to identify and address overdue payment arrangements.
  • Forecast future levels of business: Predict how the business will perform in the future, potential expenditures and revenues to project situations for future periods.
  • Create underwriting guidelines: Create guidelines for assessing risks and determining whether acceptance of liability and granting payments is worth the risk for the organisation. Develop improved methods of analysis that ensure that all aspects of the underwriting process are examined.
  • Consult credit score: Analyse the credit files of an individual, such as credit reports that outline a person’s credit history, in order to assess their creditworthiness and all the risks that would be involved in granting a person a loan.
  • Build business relationships: Establish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the organisation and its objectives.
  • Analyse insurance risk: Analyse the probability and size of the risk that is to be insured, and estimate the value of movable or immovable property of the client.

ISCO group and title

2413 – Financial analysts

  1. Insurance rating analyst – ESCO
  2. Featured image: Photo by Tima Miroshnichenko
Last updated on December 27, 2023