Landing an underwriting position at a Canadian insurer is competitive. Whether you’re applying to Intact, Aviva, Wawanesa, or a specialty market like Trisura, you’ll need to demonstrate technical knowledge, sound judgment, and strong communication skills.
We’ve compiled the 30 most common underwriter interview questions — based on real interview reports from Canadian insurers — along with model answers that show hiring managers what they want to hear.
Model answer: Underwriting is the process of evaluating and selecting risks to insure, determining appropriate terms and pricing, and deciding whether to accept, modify, or decline an application. It matters because it’s the foundation of an insurance company’s profitability — good underwriting ensures the company charges adequate premiums for the risks it takes on, maintaining a healthy loss ratio while remaining competitive in the market.
Model answer: I’d start by reviewing the basics: the type of property, construction materials, age, occupancy, and location. Then I’d assess exposure factors — fire protection (sprinklers, proximity to fire station), crime rates in the area, natural hazard exposure (flood zones, earthquake risk), and the insured’s loss history. I’d review the financials of the business to assess moral hazard. I’d check the replacement cost valuation to ensure it’s adequate. Finally, I’d compare the risk against our underwriting guidelines and appetite, determine the appropriate rate and deductible, and decide whether any endorsements or exclusions are warranted.
Model answer: Several factors could trigger a decline: the risk falls outside our underwriting appetite or guidelines, the applicant has a poor loss history with frequent or severe claims, there are signs of moral hazard such as financial distress or misrepresentation on the application, the property or operation has significant unmitigated hazards, the coverage requested exceeds our capacity limits, or the insured is unwilling to implement recommended loss prevention measures. That said, I believe in working with brokers and applicants before declining — often a risk can be made acceptable with appropriate pricing adjustments, higher deductibles, or specific exclusions.
Model answer: Adverse selection occurs when people or businesses that represent higher-than-average risk are more likely to seek insurance, while lower-risk entities may choose to self-insure or carry less coverage. Underwriters guard against this through thorough risk assessment, asking detailed application questions, verifying information through inspections and third-party data, using appropriate pricing that reflects the true risk level, and building in waiting periods or exclusions for pre-existing conditions. The key is having enough information to accurately classify and price risk so the portfolio doesn’t become adversely selected.
Model answer: The combined ratio is the sum of the loss ratio and the expense ratio, expressed as a percentage. A combined ratio below 100 percent means the insurer is making an underwriting profit — collecting more in premiums than it’s paying out in claims and expenses. A combined ratio above 100 percent means the insurer is losing money on underwriting and would need investment income to remain profitable. As an underwriter, I’d aim to contribute to a portfolio combined ratio below 95 percent to leave a margin for safety.
Model answer: Reinsurance directly impacts underwriting capacity and risk appetite. If our company has strong reinsurance treaties, we can write larger risks and accumulate more exposure in geographic areas because the reinsurer shares the risk. I’d need to understand our treaty terms — what’s covered, the retention level, and any exclusions — to make informed underwriting decisions. For particularly large or unusual risks, I might structure a facultative reinsurance placement to support the deal. The availability and cost of reinsurance also influences pricing — if reinsurance rates increase, our gross pricing needs to reflect that.
Model answer: Admitted insurers are licensed by the provincial regulator and must comply with all regulatory requirements, including rate filings and participation in guarantee funds. Non-admitted or surplus lines insurers are not licensed in the province but can write coverage that admitted markets won’t — typically unusual or hard-to-place risks. In Canada, surplus lines are regulated differently than in the U.S., with each province having its own rules. As an underwriter, understanding this distinction matters because surplus lines give us flexibility to write risks that don’t fit standard guidelines, often at higher premiums but with fewer regulatory constraints on terms and pricing.
Model answer: In my previous role, I received a large commercial property account where the broker was pushing hard for terms. The insured had a good loss history but the building had deferred maintenance and the replacement cost seemed understated. I could have followed the broker’s recommendation and booked the premium, but I knew the risk wasn’t properly rated. I requested an updated appraisal and a maintenance plan before binding. The broker was frustrated initially, but when the appraisal came back 30 percent higher than the original value, it validated my concerns. We wrote the account at the correct values and terms. The broker ultimately appreciated the thoroughness because it protected their client from being underinsured.
Model answer: I believe in being transparent and collaborative. If I’m uncomfortable with a risk, I explain my specific concerns clearly — not just “I don’t like it” but exactly what factors are driving my discomfort and what it would take to make the risk acceptable. Often there’s a middle ground: a higher deductible, specific exclusions, loss prevention requirements, or a pricing adjustment that makes the risk workable. If no compromise is possible and the risk genuinely doesn’t fit our appetite, I decline professionally and suggest alternative markets. Maintaining underwriting integrity is essential because one bad decision can cost the company millions.
Model answer: I once had to explain to a broker’s client why we were applying a water damage sublimit to their commercial property policy. Rather than diving into loss ratio data and actuarial analysis, I used a simple analogy: I compared it to a car insurance deductible — you accept a small amount of self-insurance in exchange for a lower premium. I showed them that by accepting the sublimit, their premium was 15 percent lower, and the sublimit would only come into play for a major water event, not routine claims. The client understood the trade-off and accepted the terms.
Model answer: I follow several Canadian insurance publications, including Canadian Underwriter, Insurance Business Canada, and the IBC’s quarterly reports. I participate in webinars from the Insurance Institute of Canada and the CIP Society. I also monitor broader trends — climate change data, economic indicators, legal developments — that affect the risks I underwrite. For example, I’ve been closely following the evolution of cyber risk and how courts are interpreting coverage under traditional commercial general liability policies, because that directly affects how I underwrite those classes of business.
Model answer: Early in my career, I approved a small commercial account based primarily on the broker’s recommendation without doing sufficient independent research on the insured’s operations. The account ended up having a significant claim within the first year. What I learned was that no matter how trusted the broker, I need to do my own due diligence on every risk. I developed a personal checklist of minimum information requirements that I apply to every submission, regardless of size or source. That experience made me a much more thorough and disciplined underwriter.
Model answer: I’d want to know about the type of cuisine and cooking methods (deep frying increases fire risk), the building age and construction, hood suppression systems and their maintenance schedule, liquor license status and bar revenue percentage, hours of operation, delivery services offered, prior loss history and claims frequency, current fire and health inspection reports, staff training programs for food safety, and whether they have a formal risk management program. Each of these factors affects both the property and liability exposures.
Model answer: I’d evaluate both on risk quality first — loss history, risk controls, and how well each fits our underwriting appetite. Then I’d consider the broker relationship and the potential for a long-term, profitable account. I’d also look at portfolio considerations — does one risk diversify our book better than the other? If both are equally attractive, I’d consider the premium size, the likelihood of retention, and any cross-selling opportunities. I wouldn’t automatically choose the larger premium if the smaller account represents a better long-term risk.
Model answer: This is an emerging risk class that requires careful analysis. I’d start by understanding the regulatory framework — is the operation federally licensed under the Cannabis Act? Then I’d assess the physical risks: the building construction, fire protection systems (cannabis operations have specific fire risks from extraction processes and grow lights), security measures (these facilities are targets for theft), and environmental controls. I’d review the business financials and management experience. I’d also need to understand our company’s appetite for this class and whether our reinsurance treaties cover cannabis operations. This is exactly the type of risk where thorough underwriting creates value — many competitors avoid it entirely, so companies that can underwrite it properly can earn strong premiums.
Personal lines underwriting: Be prepared to discuss Ontario auto insurance reform, usage-based insurance telematics, the impact of climate change on homeowners pricing, condo corporation insurance challenges, and how you’d handle an application with a poor credit score.
Commercial lines underwriting: Expect questions about construction classifications, business interruption coverage adequacy, how you’d assess a manufacturing operation, fleet underwriting considerations, and emerging risks like cyber liability.
Interviewers will ask about your experience with underwriting software and rating systems, how you use data analytics in your underwriting process, your approach to file documentation and audit readiness, how you manage your submission workflow and turnaround times, and your experience with policy wordings and manuscript endorsements.
Finally, expect questions about why you chose underwriting as a career, why you want to work at this specific company, where you see yourself in five years, what CIP or FCIP courses you’ve completed or plan to pursue, and how you define underwriting success beyond just premium volume.
Do your homework on the company. Understand their lines of business, their market position, recent news, and their underwriting philosophy. If they’re known for discipline, emphasize your analytical rigor. If they’re known for innovation, highlight your creative problem-solving.
Prepare specific examples. For every behavioral question, have a concrete story ready. Use the STAR method (Situation, Task, Action, Result) to structure your answers. Vague answers about “what you would do” are less convincing than stories about what you’ve actually done.
Show commercial awareness. Underwriting isn’t just about saying no — it’s about finding ways to write profitable business. Demonstrate that you understand the balance between risk selection and revenue generation.
Ask thoughtful questions. When it’s your turn to ask questions, inquire about the company’s underwriting appetite, their technology investments, mentorship programs, and career progression paths. This shows genuine interest beyond just getting a job.
Know the Canadian market. If you’re interviewing at a Canadian insurer, be prepared to discuss Canada-specific topics: provincial auto insurance regimes, the impact of climate change on Canadian P&C results, regulatory changes from OSFI or provincial regulators, and market trends in the Canadian insurance landscape.
Ready to put your preparation into action? Browse the latest underwriting positions on FinSureJobs.ca — from entry-level junior underwriter roles to senior commercial lines positions at Canada’s top insurers.