Insurance Underwriters Career Description
An Insurance Underwriter examines the insurance applications and assesses them for risks, and based upon their findings decide whether or not insurance is issued. With the advent of better and smarter computer software, assessing risks for smaller normal policies has become pretty much automated. The Insurance Underwriter today will find that they are assessing more applications in less time. This is a responsible job in that an insurance company can lose business if the underwriter denies too many applications, and they can lose money if the underwriter accepts too many high risk applications.
Insurance Underwriter Career Specializations
The Insurance Underwriter will normally specialize in a particular type of policy. Some choose the health, others accident or injury policies while others focus on corporate insurance underwriting.
Job Duties and Responsibilities
An Insurance Underwriter will with the assistance of computer programs and sometimes the reports from lost control representatives, assess the risk of ensuring an applicant and then often assign an appropriate premium. The Insurance Underwriter will make this determination based on a large number of factors and must have the ability to collate seemingly unrelated information into a valid risk assessment whole.
Most often the Insurance Underwriter will be employed within an office and maintain a standard 40 hour work week. Only in very exceptional cases is travel or extra hours required.
Employment Outlook and Opportunities
Insurance carriers employ the majority of all underwriters, though some underwriters worked in insurance agencies or in insurance service agencies. A very small number of Insurance Underwriters might work or real estate firms or mortgage companies.
Job growth is projected to be slower than normal due to the constantly improving software being utilized in the profession. The Insurance Underwriter profession experiences a high degree of turnover as the professionals advance to other opportunities. However, though job growth is predicted to be slow their will continue to be a demand for new Insurance Underwriters because of the turnover in the industry.
How much does an Insurance Underwriter make - Insurance Underwriter Salaries and Wages
Earnings for Insurance Underwriters with 1 to 4 years experience are generally within the range of $36,463 to $51,408 annually.
Earnings for Insurance Underwriters with 5 to 9 years experience are generally within the range of $40,778-$61,214 annually.
Earnings for Insurance Underwriters with 10 to 19 years experience are on average in the range of $40,388-$67,851 annually.
How to Become an Insurance Underwriter
Education for Insurance Underwriters
For the graduate just out of school applying for entry level jobs as an Insurance Underwriter, they will find that many companies have a preference for persons with degrees in finance or business administration and experience in accounting. The graduate should also have a familiarity with computers and accounting software may also be beneficial. Though most software packages used by Insurance Underwriters are company specific and will be learned on the job.
The Insurance Institute of America offers a training program for entry level underwriters. It also offers an Associate in Commercial Underwriting - ACU designation, the ACU dates the nation is appropriate for persons interested in underwriting business insurance policies. The API - Associate in Personal Insurance designation is appropriate for a person underwriting personal insurance. With the advances in software used by the Insurance Underwriter on a daily basis continuing education software is a necessity.
An Insurance Underwriter should be very detail oriented and have an analytical mind that is capable of taking disparate facts and forming a conclusion based upon them. The underwriters also be comfortable with computers and be willing to learn new software packages regularly. The Insurance Underwriter career is not for everyone but can be very rewarding for the right person.
Career advancement for the Insurance Underwriter is influenced by two factors. The first factor is time on the job and experience in underwriting, and the second factor is obtaining appropriate certifications or designation to be eligible for advancement.
For the individual interested in pursuing a suitable program for Insurance Underwriter degree there are handy links provided upon this site to view the educational opportunities.