Insurance Underwriter Careers Information
When deciding the details of insurance for people or businesses, insurance companies must estimate the potential risk of that insurance, and what conditions must be attached to the policies because of those risks. Insurance underwriters are the employees responsible for calculating those risks.
Insurance Underwriter Careers & Degrees
- Post University: Online
- Bachelor Degree: B.S. in Business Administration
- Bachelor Degree: B.S. in Business Administration - Finance
- Bachelor Degree: B.S. in Business Administration - Management
- Bachelor Degree: B.S. in Business Administration - Marketing
Colorado Technical University - Undergraduate: Undergraduate - Online
- Associate of Science (ASBA) - Business Administration
- B.S. in Business Administration - Finance
- B.S. in Business Administration - Health Care Management
- B.S. in Business Administration - Human Resource Management
American Intercontinental University: Online
Underwriters take financial, legal, medical, and occupational details from insurance applicants and inset them into established formulas to calculate the risk that the insurance company will have to make payments at some point during the life of the policy.
If underwriters are too conservative in their estimates, their company will lose business to other insurers willing to take greater risks. If they are too liberal, they may have to make large payouts when people make claims on their risky policies. Underwriting is, therefore, a crucial part of any insurance company.
Insurance Underwriter Careers Path
Most insurance companies seek college graduates with degrees in business administration, finance, or economics for entry-level underwriting positions. In some cases, though, a bachelor’s degree in nearly any discipline, along with coursework in accounting, business, or statistics, may be enough to qualify an applicant.
Underwriters typically begin their careers as trainees or assistants, working under experienced underwriters, and may hold these initial positions for a few months to a year.
The Insurance Institute of America (IIA) offers training programs for those beginning a career in underwriting, culminating with the Associate in Commercial Underwriting (ACU) or Associate in Personal Insurance (API) certifications, depending on the type of insurance career sought.
Insurance Underwriter Careers: Compatible Personality Traits
Excellent quantitative abilities, strong understanding of statistical processes, attention to detail, ability to follow precise directions and formulas while exercising good independent judgment, excellent communications skills (written and oral)
Insurance Underwriter Careers: Salary Expectations
Entry level insurance underwriters typically earn an average salary of $56,790, with the middle 50% earning between $43,490 and $76,700.
Insurance Underwriter Careers: Job Outlook
Employment of insurance underwriters is expected to decline very slightly during the next decade. Though the need for underwriting will not decline, advances in technology allowing underwriters to do their jobs much more quickly and efficiently has meant that fewer underwriters are needed for the same amount of work.
This is not to say that there will be no need for new underwriters; as the existing generation of underwriters reaches retirement age, new talent will be required. However, job competition will be fierce as new employees must battle not only each other, but also technological advances for new jobs.
Slightly Off the Footpath
Sources: Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11 Edition, Psychologists, on the Internet at http://bls.gov/oco/ocos026.htm (visited November 8, 2011); salary.com
