Become an Insurance Underwriter
Underwriting Jobs, Qualifications, Pay, & Tips for Career Seekers
Jun 13, 2009
Insurance underwriters act as the gatekeepers of their insurance companies. They evaluate new applications and monitor existing policies to guarantee that their customers are eligible for coverage. Successful underwriters aid in the profitability of their companies and understand the overall value of their contributions to the insurance industry.
Underwriter Qualifications
Most insurance companies prefer candidates who:
- Have four year degrees in business, insurance, or a related field.
- Have two or more years of experience selling or servicing insurance products.
- Hold the CPCU (Chartered Property Casualty Underwriter) or ARM (Associate in Risk Management) designation. Candidates who are working toward these designations are also regularly considered for underwriting positions.
Business-to-business communication skills are helpful in underwriting positions because the role requires daily contact with insurance agents and other insurance professionals. Occasional travel may be required.
The Underwriter's Salary
According to the Bureau of Labor Statistics, the median salary for underwriters is $52,350 with the top ten percent earning $92,240 or more. However, entry level underwriting positions are known to pay between $30,000 and $35,000. The high pay range in this category is among the various reasons why underwriting is one of the most desirable careers in the insurance field.
It is important to note that the most highly-paid underwriters in the insurance field are often the most experienced. Underwriting managers and risk management professionals tend to command the highest salaries.
How to Train for an Underwriting Job
Aspiring underwriters should keep in mind that this sector of the insurance profession is highly competitive. Experience is the most valued attribute when searching for candidates, so it may be necessary for inexperienced career seekers to invest up to five years into career development. The most valuable learning experiences can be gained in the following ways:
- Working in an insurance agency – Insurance agents work with underwriting manuals on a daily basis to determine if and how their products can benefit their customers. The consultative selling practices used by insurance agents is great for learning how to evaluate the eligibility of an applicant.
- Technical training courses – Candidates with experience in the field of insurance can take a variety of courses through the American Institute for Chartered Property Casualty Underwriters (AICPCU).
- Entry-level work at an insurance company – Insurance companies often offer positions as entry-level processors, claims associates, and customer service representatives that can be used as valuable learning environments. These positions all involve the regular use of underwriting manuals, company software, and the communication skills needed to be an effective underwriter.
How to Find an Underwriting Job
The most popular tool for career searches today are the various career advertisements found online. However, candidates who choose to use resources like Career Builder, Monster, and Indeed should keep in mind that the competition for these positions is fierce and could take a significant amount of time.
It is important to note that some insurance companies post openings internally before making them public. To stay on top of these, it may be helpful to build a network of reliable contacts inside these organizations. It may also be helpful to visit the websites of top insurance companies often to check for openings. The best opportunities may require relocation.
Underwriters have stable careers that offer bright futures, great pay, and countless opportunities for additional learning and development. Ambitious candidates who desire to become experts in their field will thrive in this profession.
