Insurance Career Secrets: A blog about the best and fastest ways to become an underwriter

The insurance industry has long been considered a reliable, lucrative career choice. This is true, especially when it comes to underwriting.

If you’re new to all of this, you’re probably wondering what exactly is an underwriter? An underwriter is responsible for choosing whether or not to insure a person/policy based on their risks.

An underwriter is a sought after job by many in the insurance industry, and is a role that has a lot of job security, especially in today’s market. They are responsible for analyzing insurance applications and deciding whether or not to accept the risk and insure it. If they decline the risk, their office will correspond with the applicant on how to proceed.

The Underwriting department is the core of any insurance company. The underwriter is responsible for conducting credit, health and fire inquiries on each client and ensuring the risk written by the insurance company is minimized. It is key that the underwriter perform all thorough inquiries to protect themselves from losses.

As with all careers, there are advantages and disadvantages to becoming an underwriter. For example, they make a higher salary than most other insurance professionals but must work longer work hours. They have to treat every applicant equally whether they are aware of the applicant’s current and previous illnesses or not. Yet, if you are happy with the set-up, you can become an underwriter in as little as one year.

What qualifications do I need to become an underwriter?

While there are no formal education requirements to become an underwriter, most positions are highly specialized and require a bachelor’s degree in a related field. Many employers also prefer candidates who have at least five years of experience in the insurance industry, so it helps if you have completed an internship or apprenticeship before entering the workforce. You may find that some employers prefer candidates who have a master’s degree or postgraduate qualifications in a related field, especially if you are interested in working in a senior role.

Many organizations look for candidates who have technical skills such as strong analytical abilities and exceptional attention to detail. You should be able to demonstrate that you can evaluate complex information with ease, understand risk management strategies and possess strong communication skills. Any relevant work experience will be considered as part of the application process, so it is important that you highlight any relevant positions on your resume.

1. Get a bachelor’s degree in finance, accounting or economics. These majors are considered appropriate preparation for a career as an underwriter, according to the BLS. A few schools offer a major in underwriting or insurance management, but these options are not widely available.
2. Obtain work experience as a loan officer or financial analyst. This will help you learn how to evaluate risks and make decisions on loans. Some employers prefer applicants with work experience.
3. Consider earning professional certification, such as the Certified Insurance Counselor (CIC) designation offered by the National Alliance for Insurance Education & Research or the Chartered Property Casualty Underwriter (CPCU) designation offered by The Institutes.

What are some potential specialization options in insurance underwriting?

1. Property and Casualty Underwriting: Focus on evaluating and managing risk for properties, vehicles, and a wide range of personal and business assets. This specialization often involves assessing environmental factors and the likelihood of natural disasters.

2. Life Insurance Underwriting: Analyze financial and medical risks to determine policy premiums for individuals seeking life insurance. This specialty typically requires a strong background in statistics and data analysis.

3. Health Insurance Underwriting: Specialize in assessing the risks involved with health coverage. This could involve understanding complex medical histories, predicting health outcomes, and setting appropriate premiums.

4. Marine and Aviation Underwriting: Requires assessing risks related to transportation and international commerce.

5. Reinsurance Underwriting: Work with high-level financial data to evaluate risks that insurers themselves face. This specialization is ideal for those who enjoy detailed policy analysis and financial forecasting.

6. Special Risk Underwriting: Handle unique or high-risk cases, such as sports or entertainment industries, where standard policies don’t apply. This niche is perfect for underwriters seeking diverse challenges and bespoke solutions.

How much money can I really make as an underwriter?

In terms of compensation, insurance underwriters received a median annual salary of $76,390 as of 2021. This figure, provided by the U.S. Bureau of Labor Statistics, indicates a lucrative potential for professionals in this field, further enhancing the appeal of pursuing a career in insurance underwriting. The top-paid 10 percent of underwriters earn more than $126,430 while the lowest-paid 10 percent earn less than $42,600. Salaries vary depending on where you work and how much experience you have.

What Skills Do I Need To Become An Underwriter?

Being an underwriter requires some specific skills and knowledge. You will need to be proficient in mathematics and statistics, as well as computer programs such as Microsoft Excel and Word. Depending on your position, you may also need experience with specific software used by your employer.

You will also need to understand basic concepts related to finance, investment portfolios and accounting.

Underwriters need to be a team player, have an analytical mind and be excellent with numbers. If you have these skills and love to solve problems, then a career as an underwriter may be right for you.

Underwriters are the lifeblood for pricing and rating term insurance risk. The best underwriters have proven instincts and an ability to develop credibility with key managers and carriers. To provide quality business, underwriters must provide insights and recommendations to help managers/agencies price, place and service business. 

What is the Career Outlook for Insurance Underwriters?

If you’re considering a career as an insurance underwriter, it’s important to know what the future holds for this profession. According to projections, the field of insurance underwriting is expected to see about 8,400 job openings each year from 2021 to 2031. This steady demand suggests a stable career path for those interested in entering this industry.