Insurance Underwriter

Your Fit

Income

$78K

Preparation

Considerable

Growth

-2.4%

Definition
Your fit with this career
How much they earn
What they do
Job satisfaction
How to become

What is an Insurance Underwriter?

An Insurance Underwriter is a professional who evaluates and analyzes the risks involved in insuring people and assets. They determine the coverage terms and calculate premiums based on the likelihood of a claim being made.

Your test results

Why this fit score?

The fit report shows your areas of fit and misfit with Insurance Underwriter.

Fit report

Test scores

The scores report summarizes what we learned about you. It shows your results on everything measured in the career test.

Scores report

How much does an Insurance Underwriter earn

According to the U.S. Bureau of Labor Statistics, typical income (in USD) is...

Bottom 10%	Bottom 25%	Median (average)	Top 25%	Top 10%
$48K per year	$61K per year	$78K per year	$102K per year	$132K per year

Compared to other careers: Median is $30K above the national average.

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What does an Insurance Underwriter do?

Work environment

Insurance Underwriters typically work in office settings at insurance companies. They spend much of their time working on computers, analyzing data, and making decisions about insurance applications. Some underwriters may specialize in particular types of insurance and might need to travel to assess properties or meet with clients.

Quick task list

Assesses insurance applications and determines the risk involved.
Decides whether to offer insurance and under what terms.
Calculates premiums and amounts of coverage.
Reviews and updates existing policies.
Collaborates with actuaries, risk managers, and insurance agents.

See full list of tasks with expert relevance ratings

Areas of specialization

Property and Casualty Underwriting: Specializing in insurance for property damage or liability claims.
Life Insurance Underwriting: Focusing on policies for life insurance and assessing health and lifestyle risks.
Health Insurance Underwriting: Determining risks in health insurance, often for individual or group health plans.
Commercial Insurance Underwriting: Specializing in insurance for businesses and corporations.
Reinsurance Underwriting: Assessing the risks of insuring insurance policies and determining reinsurance agreements.

Description

Insurance Underwriting is a critical function in the insurance industry, balancing the need to protect the insurance company's financial health with the need to provide fair coverage. Underwriters must analyze various risk factors and use their judgment and expertise to make decisions. They rely on software but also bring in their analytical skills to interpret data that the software cannot fully assess.

This role requires a good balance of analytical skills and intuition. Underwriters must be detail-oriented to accurately evaluate risks, yet also able to make decisions with sometimes incomplete information. They must keep up with changes in the insurance industry and regulatory environment.

Insurance Underwriters work closely with other professionals in insurance, such as agents, risk managers, and actuaries. Good communication skills are essential to explain their decisions and to negotiate terms with agents and brokers.

Job Satisfaction

Sources of satisfaction

The critical role in safeguarding the financial health of the insurance company.
The analytical and investigative nature of the work.
Opportunities for specialization in various types of insurance.

You might make a good Insurance Underwriter if you are...

Analytical and detail-oriented, with a knack for assessing risks.
Decisive, capable of making informed judgments with available information.
Interested in finance and insurance, and enjoy working with numbers and data.
A good communicator, able to explain complex insurance terms and conditions.
Adaptable, willing to continuously learn and update your knowledge.

Pros:

Stable career in a foundational sector of the finance industry.
Intellectual challenge and the satisfaction of problem-solving.
Opportunities for advancement and specialization.

Cons:

The work can be repetitive and requires meticulous attention to detail.
Pressure to make accurate decisions that affect both the company and clients.
Need to keep up with constantly changing insurance regulations and policies.

How to become an Insurance Underwriter

Typical education

A bachelor's degree is commonly required for this role, typically in fields such as finance, economics, or business administration, which amounts to about 4 years of post-secondary education. Additional training and certification in underwriting can be advantageous.

High school preparation

Courses:

Mathematics, particularly statistics, to develop analytical skills.
Business studies to understand basic principles of insurance and finance.
Economics to gain insights into market dynamics and risk assessment.

Extra-Curricular Activities:

Joining a math or finance club.
Participating in business or economics-related competitions.
Volunteering in community organizations, especially those involving fiscal management.

Preparation after high school

Earning a bachelor's degree in finance, economics, or business administration.
Pursuing internships in insurance companies to gain practical experience.
Considering professional certifications, such as Chartered Property Casualty Underwriter (CPCU) or Certified Underwriter (CU).

More resources

The Institutes - Offers courses and certifications in insurance and underwriting.
American College of Financial Services - Provides specialized education in insurance and financial services.
Insurance Information Institute - Offers comprehensive resources on various aspects of insurance.
National Association of Insurance Commissioners (NAIC) - Provides regulatory information and resources on insurance.
Chartered Property Casualty Underwriter (CPCU) Society - A professional organization offering resources and networking for underwriters.

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