Learn About the Salary, Required Skills, & More Show The Balance / Theresa Chiechi Insurance underwriters evaluate applicants for insurance. They determine whether or not a prospective customer should be insured and, if so, recommend an appropriate premium to take on that level of risk. Insurance underwriters use software to help analyze the risk profile of clients and to calculate costs. Insurance underwriters work closely with insurance agents who have direct contact with customers and with actuaries who perform complex calculations to determine the likelihood that accidents and other mishaps might befall a category of clients. Insurance underwriters specialize in many different types of insurance including auto, homeowners, marine, commercial, personal/professional liability, and travel. Insurance Underwriter Duties & ResponsibilitiesThis career generally requires the ability to perform the following tasks:
Insurance underwriters serve as a go-between for insurance companies providing coverage and the insurance salespeople selling policies. A person seeking coverage typically will apply through a salesperson who refers the application to an underwriter. The underwriter reviews the data associated with the applicant, assesses the risk, determines if coverage should be provided, how much should be provided, and at what cost to the insured. Many decisions are straightforward and based on preset standards. For example, when a potential customer applies for something common like auto insurance, relevant details such as the driver's personal information, location of residence, driving record, and more are entered into a computer program that will calculate what that individual's rate should be. It's not that the underwriter doesn't need to use analytical skills for such a case, but auto insurance policies are so common there's an abundance of data from which levels of risk can be assessed. When insurance policies are for something less common or include variables that are less common or less predictable, underwriters need to rely more on their own experience, knowledge, and insight, and less on a computer algorithm. For example, a client might have an art collection or a lot of jewelry that needs to be insured. An underwriter then would need to assess that individual case more closely and cautiously. Insurance Underwriter SalaryExperienced insurance underwriters can earn well into six figures. Those in specialized fields such as health care, workers compensation, or marine insurance are most likely to have the greatest earning potential.
Education, Training, & CertificationA bachelor's degree typically is the only requirement to get a job as an insurance underwriter, but relevant coursework is helpful.
Insurance Underwriter Skills & CompetenciesUnderwriters need to develop and document analytical, quantitative, decision-making, verbal, writing, and presentation skills in order to be hired and successfully carry out their responsibilities.
Job OutlookAccording to the U.S. Bureau of Labor Statistics, job opportunities for insurance underwriters are projected to decline 2% during the decade ending in 2030. This is dramatically worse than the 8% growth projected for all occupations. The projected decline is due to the growing prevalence of automated underwriting software being used to process insurance applications. Work EnvironmentMuch of the work of insurance underwriters is done sitting at a desk entering data into a computer or analyzing data on a computer. Most of the interactions away from the computer are with insurance agents who rely upon the information provided by underwriters. Work ScheduleInsurance underwriters typically work full-time during standard business hours. Because of the nature of their work, there is little need or reason to have to work evenings or weekends. How to Get the JobNUMBERS: The job is largely about working with and analyzing numbers, so enjoying that kind of work is paramount. EXPERIENCE: A lot of experience is gained on the job, so get a foot in the door and start gaining experience. CERTIFICATION: Take advantage of opportunities to earn certifications in order to be more marketable. Comparing Similar JobsPeople interested in being an insurance underwriter might also consider the following career paths, listed with median annual salaries:
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