Insurance UnderwriterInsurance Underwriters salary statistic

Salary Range: $38.6k- $117k

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Salary Range: $38.6k - $117k

Insurance Underwriter

Insurance underwriters make decisions on the insurability of applicants (personal and business), and determine rates and other terms of policies (deductibles, etc.). Obviously, they work for insurance companies, and, dependent upon size of the company and geographical location, an insurance underwriter salary may vary widely. The mean annual underwriter insurance salary is currently at about $70,000.

Basic Job Responsibilities

Risk is what underwriters work with. They must determine the level of risk that an individual or business poses to a company if the decision is made to insure them. To determine this risk, they use the data that is supplied by actuaries, loss-control reports, etc.

There are usually three categories of risk: high-risk usually means insurance denial and is based upon the applicant’s lifestyle, geographic location, credit history, and insurance claim history. Moderate risk applicants usually mean insurability but at higher rates and deductibles than low-risk applicants who typically get the best rates.

Underwriters, once they have assessed insurability, write the terms of the policies that are then offered to applicants.

Education and Training Requirements

An entry-level insurance underwriter salary does depend on the educational background and training that has been received. A Bachelor’s degree in finance or business is an absolute must. Business law classes should be in that degree program, along with computer skills and basic accounting.

Most underwriters begin their careers as trainees or assistants to established and experienced senior underwriters, working at first with just routing applications. As they gather more experience, and perhaps return to school for more specialized training, their career path enhances, and they will move forward to more complicated applications.

Career Forecast

People and companies will always need insurance. Even though it is easy to secure through online sources, an underwriter still must review applications, especially for moderate and high-risk applicants and determine details of rates and policies. For this reason, such careers are expected to grow at an average rate over the next 6-8 years, and the average salary for insurance underwriters is expected to grow accordingly.

Certifications

Insurance salesmen and brokers must have state licenses. While this is not required of underwriters, there are certifications that most employers want to see and that will result in a higher underwriting insurance salary. These are as follows:

  • The Associate in commercial Underwriting (ACU) is usually the initial certification that entry-level underwriters get at the beginning of their careers.
  • The Associate in Personal Insurance (API) is a required certification for anyone who underwrites personal insurance policies.
  • The Life Underwriter Training Council Fellow (FUTCF) can be obtained early on in one’s career too. This is actually conferred upon completion of a specialized course, and it is good to get as soon as possible.
  • For experienced underwriters, the “gold standard” is to get the Chartered Property and Casualty Underwriter (CPCU) certification. This is an exam-based certification, and the other requirement is work in the profession for a minimum of three years.
  • The Chartered Life Underwriter (CLU) certification. This means that an individual is qualified for a senior underwriting or management position. It is also usually accompanied by an advanced degree in an industry-related field. Once this step is reached, however, means that the insurance underwriting salary takes a big jump.

For those who like to study data, to crunch numbers, and to engage in some creative problem-solving, a position as an insurance underwriter is ideal. And if you need help with resume or CV you can ask for an assistance from resume professional writers.