How to Become an Insurance Underwriter

Underwriters use research and analysis to determine the right amount of money an insurance company should pay for a policy. They evaluate information like building costs, motor vehicle records and inspection logs.

This career requires a variety of skills, including analytical, computer, communication and math skills. You also need to be able to make good decisions and demonstrate strong interpersonal skills.

Education

Underwriters examine the financial risks of applicants and determine if they qualify for insurance coverage. The job requires analytical, logical skills and knowledge of the industry’s guidelines and procedures. They also require good time management and communication skills.

Underwriting is a challenging career, but it can lead to lucrative employment and advancement. Those who are interested in this field should earn a bachelor’s degree in finance, business, or math. They should also have strong analytical and computer skills.

Entry-level positions usually involve on-the-job training and professional development courses. The training varies from company to company, but it typically covers risk assessment and the software and products used by insurers. As you gain experience, you become more independent and begin handling complex insurance applications under your own supervision.

As an underwriter, you evaluate risk on a wide variety of applications from individuals, businesses, and nonprofit organizations. This can involve researching information about the applicant, such as income and credit history. You also use computers to verify the applicant’s information and perform calculations.

To become a certified life or property insurance underwriter, you must complete a program that includes coursework and exams. Some certifications include Chartered Property and Casualty Underwriter (CPCU) and the Life Underwriter Training Council Fellow (LUTCF).

The American College of Financial Services offers the Chartered Life Underwriter (CLU) certification, which requires completing five core courses and three electives and demonstrating three years of related work experience. You may also choose to pursue the CPCU certification offered by The Institutes, which requires two or more years of experience and requires completing four core courses, three concentration courses, and an ethics course before passing an exam.

Many underwriters advance to managerial or senior-level positions after gaining experience. Some go on to obtain a master’s degree in business or health administration.

If you are looking for a fulfilling and rewarding career, consider underwriting. The job demands excellent decision-making, mathematical, and analytical skills as well as good interpersonal communication and attention to detail. It also requires strong time-management skills and a desire to learn.

Experience

Insurance underwriters work with insurance agents to assess the risk of individuals and businesses. They use computer programs to evaluate an applicant’s medical documents and financial situations, then decide whether or not they should be approved for a policy. They also determine the terms, conditions and premiums of a policy.

The job requires strong analytical skills and a good understanding of insurance policies and industry regulations. It can be challenging, but if you enjoy evaluating data and making important decisions, it could be an enjoyable career for you.

Most insurance underwriters have a bachelor’s degree with courses in finance, business and math. However, if you have strong computer skills and insurance industry experience, you may be eligible for a position without a degree. Once hired, you train under an experienced underwriter for a few months.

You typically work standard office hours, Monday to Friday. Depending on the type of insurance, you may also travel to conduct assessments of individual properties.

Underwriters must be familiar with a variety of insurance types, including life, health, commercial and property. They also must have strong communication skills to communicate with customers and brokers.

The job market for insurance underwriters is expected to decline, according to the Bureau of Labor Statistics. The primary reason for this is the growth of automated underwriting software. It helps underwriters process applications more quickly, which reduces the need for them to hire additional workers.

Many underwriters specialize in specific areas, such as auto, homeowners, marine or commercial insurance. This is a good way to diversify your earnings and increase your job security.

As an underwriter, you will receive training and mentoring from a senior team member and a mentor. You will gain valuable industry insights and working relationships that can help you advance in your career.

While most underwriters begin with a bachelor’s degree, some will go to college for a master’s in business (MBA) or health administration (MS, MHA). Regardless of the path you take, an education and training program is crucial for your success as a health insurance underwriter.

Underwriters with a bachelor’s degree are in the best position to obtain an entry-level job, although experience is necessary to progress to senior underwriter or underwriter manager positions. Certification is often required to advance within a company, so it’s a good idea to get your certification as soon as possible.

Licenses

Underwriters assess applicants’ risks, then write insurance policies on behalf of insurance companies. This requires a high degree of analytical and technical skills. While automated systems are used to perform a large part of the underwriting process, many tasks are still carried out by humans.

Underwriting is a career that can be highly rewarding and offers a wide variety of opportunities for career advancement. You can start as a trainee underwriter or a junior member of staff with supervision, then work your way up to senior underwriter or team leader/manager roles.

Some underwriters may also take on additional responsibilities such as delivering training and mentoring to less experienced underwriters. Increasingly, you’ll be able to make decisions on your own, but you’ll need to keep up with new developments in the industry so you can stay competitive and grow your expertise.

Generally, you need at least a bachelor’s degree to become an insurance underwriter, although many companies prefer a more specific degree that is relevant to the area you wish to work in. You can take business, economics, and mathematics classes to prepare for this career, and a college degree can also help you get more promotions in the field.

Computer Skills: A good underwriter must be able to use computers efficiently and understand complex software programs that can help them assess risk in applicants. They also need to be able to check the information provided by applicants, verify it with outside sources and make calculations quickly.

Math Skills: As an underwriter, you will need to be able to calculate the amount of money that will be paid out on an insurance policy. This can be a daunting task, but you’ll need to be able to do it well so that you don’t end up overpaying for coverage.

You’ll need to pass an exam in your state to obtain a license as an insurance agent. The exam will vary by state, and it could include a combination of 12 to 40 hours of prelicensing instruction and the study of ethics and insurance codes. Some states offer exemptions from these requirements if you earn a professional designation, such as the Chartered Life Underwriter (CLU) or the Chartered Property Casualty Underwriter (CPCU).

Certifications

Insurance underwriters use a variety of skills to analyze information on insurance applications and determine what type of coverage is best for the applicant. They also use computer software to enter data and perform calculations. These professionals must be detail-oriented and have strong communication skills to interact with clients.

Many underwriters have bachelor’s degrees in business, finance, economics or mathematics. They may also have significant insurance-related work experience. Some employers require a graduate degree, though it is not required for entry-level positions.

The Bureau of Labor Statistics projects that job growth for health care and medical insurance underwriters will be 15 percent from 2016 to 2026. This is a rapidly growing field, and there will be an increased need for insurance underwriters who can assess and understand the complex medical issues related to each client.

Employers prefer underwriters with analytical, logical, and detail-oriented skills. They should have excellent communication and problem-solving abilities and a desire to learn continuously.

Most employers prefer underwriters with a bachelor’s degree in business, finance, economics or mathematics. The BLS states that a master’s degree is not necessary for the average underwriter but some senior-level jobs require it.

Professional certifications are available to help insurance underwriters stay up to date on the latest technology, insurance policies, and regulations. These include the Chartered Property Casualty Underwriter (CPCU) and the Chartered Life Underwriter (CLU) designations, offered by The Institutes.

These professional designations are generally reserved for those with specific areas of expertise and require a series of courses and exams. These include insurance policy analysis and commercial risk management.

Earning these certifications is a good way to distinguish yourself from the competition and enhance your career opportunities. They also provide a pathway to senior-level employment or management.

In addition to certifications, underwriters must also have a solid understanding of insurance laws and regulations. These are often complex and change frequently. They need to keep up with these changes so they can recommend the most effective insurance plan for their customers.