Education:
70%
Bachelor's Degree
10%
High School Diploma - or the equivalent (for example, GED)
Insurance Underwriter
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Job Outlook:
Decline
Education:
Bachelor's degree
Work From Home
Salary
High:
$130,210.00
Average:
$82,990.00
Hourly
Average:
$39.90
What they do:
Review individual applications for insurance to evaluate degree of risk involved and determine acceptance of applications.
On the job, you would:
- Examine documents to determine degree of risk from factors such as applicant health, financial standing and value, and condition of property.
- Decline excessive risks.
- Write to field representatives, medical personnel, or others to obtain further information, quote rates, or explain company underwriting policies.
Important Qualities
Analytical skills. Underwriters must evaluate information from a variety of sources to balance risk against caution.
Decision-making skills. Underwriters determine whether to approve applicants for insurance coverage and, if approved, at what level to set premiums.
Detail oriented. Underwriters must stay focused when reviewing insurance applications because each item may affect the coverage decision.
Interpersonal skills. Underwriters need to communicate and relate well with people because much of their work involves dealing with clients or others, such as insurance sales agents.
Math skills. Underwriters need math knowledge to ensure accuracy in determining the probability of losses and calculating appropriate premiums on an insurance policy.
Personality
| A3 | Your Strengths | Importance |
Characteristics of this Career |
|---|---|---|---|
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95% | Integrity - Job requires being honest and ethical. | |
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92% | Attention to Detail - Job requires being careful about detail and thorough in completing work tasks. | |
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89% | Analytical Thinking - Job requires analyzing information and using logic to address work-related issues and problems. | |
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83% | Dependability - Job requires being reliable, responsible, and dependable, and fulfilling obligations. | |
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77% | Achievement/Effort - Job requires establishing and maintaining personally challenging achievement goals and exerting effort toward mastering tasks. | |
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76% | Cooperation - Job requires being pleasant with others on the job and displaying a good-natured, cooperative attitude. | |
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76% | Stress Tolerance - Job requires accepting criticism and dealing calmly and effectively with high-stress situations. | |
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75% | Self-Control - Job requires maintaining composure, keeping emotions in check, controlling anger, and avoiding aggressive behavior, even in very difficult situations. | |
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73% | Initiative - Job requires a willingness to take on responsibilities and challenges. | |
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70% | Adaptability/Flexibility - Job requires being open to change (positive or negative) and to considerable variety in the workplace. | |
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68% | Persistence - Job requires persistence in the face of obstacles. | |
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67% | Independence - Job requires developing one's own ways of doing things, guiding oneself with little or no supervision, and depending on oneself to get things done. |
| A3 | Your Strengths | Importance |
Strengths |
|---|---|---|---|
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89% | Conventional - Work involves following procedures and regulations to organize information or data, typically in a business setting. Conventional occupations are often associated with office work, accounting, mathematics/statistics, information technology, finance, or human resources. | |
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61% | Enterprising - Work involves managing, negotiating, marketing, or selling, typically in a business setting, or leading or advising people in political and legal situations. Enterprising occupations are often associated with business initiatives, sales, marketing/advertising, finance, management/administration, professional advising, public speaking, politics, or law. |
| A3 | Your Strengths | Importance |
Values of the Work Environment |
|---|---|---|---|
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67% | Relationships - Occupations that satisfy this work value allow employees to provide service to others and work with co-workers in a friendly non-competitive environment. Corresponding needs are Co-workers, Moral Values and Social Service. | |
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67% | Independence - Occupations that satisfy this work value allow employees to work on their own and make decisions. Corresponding needs are Creativity, Responsibility and Autonomy. | |
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61% | Support - Occupations that satisfy this work value offer supportive management that stands behind employees. Corresponding needs are Company Policies, Supervision: Human Relations and Supervision: Technical. |
Aptitude
| A3 | Your Strengths | Importance |
Abilities | Cognitive, Physical, Personality |
|---|---|---|---|
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72% | Written Comprehension - The ability to read and understand information and ideas presented in writing. | |
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69% | Written Expression - The ability to communicate information and ideas in writing so others will understand. | |
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69% | Inductive Reasoning - The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events). | |
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66% | Oral Expression - The ability to communicate information and ideas in speaking so others will understand. |
Job Details
Responsibilities
Authorize financial actions.
Explain regulations, policies, or procedures.
Assess risks to business operations.
Authorize financial actions.
Verify accuracy of records.
Authorize financial actions.
Assess financial status of clients.
Analyze health-related data.
| A3 | Your Strengths | Importance |
Attributes & Percentage of Time Spent |
|---|---|---|---|
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100% | Electronic Mail - How often do you use electronic mail in this job? | |
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98% | Spend Time Sitting - How much does this job require sitting? | |
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95% | Telephone - How often do you have telephone conversations in this job? | |
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89% | Indoors, Environmentally Controlled - How often does this job require working indoors in environmentally controlled conditions? | |
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89% | Time Pressure - How often does this job require the worker to meet strict deadlines? | |
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88% | Contact With Others - How much does this job require the worker to be in contact with others (face-to-face, by telephone, or otherwise) in order to perform it? | |
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85% | Face-to-Face Discussions - How often do you have to have face-to-face discussions with individuals or teams in this job? | |
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83% | Frequency of Decision Making - How frequently is the worker required to make decisions that affect other people, the financial resources, and/or the image and reputation of the organization? | |
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83% | Freedom to Make Decisions - How much decision making freedom, without supervision, does the job offer? | |
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83% | Importance of Being Exact or Accurate - How important is being very exact or highly accurate in performing this job? | |
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77% | Structured versus Unstructured Work - To what extent is this job structured for the worker, rather than allowing the worker to determine tasks, priorities, and goals? | |
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76% | Letters and Memos - How often does the job require written letters and memos? | |
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73% | Impact of Decisions on Co-workers or Company Results - What results do your decisions usually have on other people or the image or reputation or financial resources of your employer? | |
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70% | Work With Work Group or Team - How important is it to work with others in a group or team in this job? |
| A3 | Your Strengths | Importance |
Tasks & Values |
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95% | Getting Information - Observing, receiving, and otherwise obtaining information from all relevant sources. | |
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91% | Making Decisions and Solving Problems - Analyzing information and evaluating results to choose the best solution and solve problems. | |
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86% | Analyzing Data or Information - Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts. | |
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85% | Working with Computers - Using computers and computer systems (including hardware and software) to program, write software, set up functions, enter data, or process information. | |
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83% | Establishing and Maintaining Interpersonal Relationships - Developing constructive and cooperative working relationships with others, and maintaining them over time. | |
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78% | Processing Information - Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data. | |
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77% | Communicating with People Outside the Organization - Communicating with people outside the organization, representing the organization to customers, the public, government, and other external sources. This information can be exchanged in person, in writing, or by telephone or e-mail. | |
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76% | Organizing, Planning, and Prioritizing Work - Developing specific goals and plans to prioritize, organize, and accomplish your work. | |
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75% | Communicating with Supervisors, Peers, or Subordinates - Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person. | |
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73% | Evaluating Information to Determine Compliance with Standards - Using relevant information and individual judgment to determine whether events or processes comply with laws, regulations, or standards. | |
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71% | Updating and Using Relevant Knowledge - Keeping up-to-date technically and applying new knowledge to your job. | |
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71% | Documenting/Recording Information - Entering, transcribing, recording, storing, or maintaining information in written or electronic/magnetic form. | |
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69% | Identifying Objects, Actions, and Events - Identifying information by categorizing, estimating, recognizing differences or similarities, and detecting changes in circumstances or events. | |
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68% | Resolving Conflicts and Negotiating with Others - Handling complaints, settling disputes, and resolving grievances and conflicts, or otherwise negotiating with others. |
What Insurance Underwriters Do
Most insurance underwriters specialize in one of three broad fields: health, life, and property and casualty.
Insurance underwriters evaluate insurance applications and decide whether to approve them. For approved applications, underwriters determine coverage amounts and premiums.
Duties
Insurance underwriters typically do the following:
- Analyze information stated on insurance applications
- Determine the risk involved in insuring a client
- Screen applicants based on set criteria
- Use automated software to determine the risk of insuring applicants
- Review recommendations from underwriting software
- Contact field representatives, medical personnel, and others to obtain additional information
- Decide whether to offer insurance
- Determine appropriate premiums and amounts of coverage
Underwriters are the main link between an insurance company and an insurance sales agent. Insurance underwriters use computer software to analyze risk for determining whether to approve an applicant. They take specific information about an applicant and enter it into a program. The program then provides recommendations on coverage and premiums. Underwriters evaluate these recommendations and decide whether to approve or reject the application. If a decision is difficult, they may consult additional sources, such as medical documents and credit scores.
For simple and common types of insurance, such as automobile insurance, underwriters typically rely on automated recommendations. For specific and complex insurance types, such as workers’ compensation, underwriters need to rely more on analytical insight.
Underwriters analyze the risk factors appearing on an application. For example, if an applicant reports a previous bankruptcy, the underwriter must determine whether that information is relevant to the policy being applied for. If relevant, the underwriter would then consider how far in the past the bankruptcy occurred and how the applicant’s financial situation has changed since the bankruptcy filing.
Insurance underwriters must achieve a balance between risky and cautious decisions. If underwriters allow too much risk, the insurance company will pay out too many claims. But if they don’t approve enough applications, the company will not make enough money from premiums.
Most insurance underwriters specialize in one of three broad fields: health, life, and property and casualty. Although the job duties in each field are similar, the criteria that underwriters use vary. For example, for someone seeking life insurance, underwriters consider the person’s age and financial history. For someone applying for car insurance (a form of property and casualty insurance), underwriters consider the person’s driving record.
Within the broad field of property and casualty, underwriters may specialize in commercial (business) insurance or personal insurance. They also may specialize by the type of policy, such as for insuring automobiles, homes, or pets.
Work Environment
Insurance underwriters held about 125,500 jobs in 2022. The largest employers of insurance underwriters were as follows:
| Direct insurance (except life, health, and medical) carriers | 46% |
| Insurance agencies and brokerages | 26 |
| Other insurance related activities | 5 |
| Direct health and medical insurance carriers | 4 |
| Credit intermediation and related activities | 3 |
Underwriters work in an office setting during regular business hours. They spend much of their time alone at a computer, most often working on applications but sometimes handling customer inquiries.
Some property and casualty underwriters travel to assess properties in person.
Work Schedules
Most underwriters work full time.
Getting Started
How to Become an Insurance Underwriter
Most firms prefer to hire applicants with a bachelor’s degree.
Insurance underwriters typically need a bachelor’s degree to enter the occupation. However, candidates who have an associate's degree or a high school diploma and insurance-related work experience sometimes qualify for positions. Certification may be beneficial.
Education
Employers usually prefer to hire candidates who have a bachelor’s degree. A common field of degree is business. Coursework in finance, economics, and mathematics is helpful.
Some colleges and universities partner with local businesses to offer internships. These opportunities allow students to gain knowledge or practical experience through assisting in a variety of tasks, such as underwriting.
Training
Beginning underwriters typically work under the supervision of senior underwriters for up to 12 months. Trainees work on basic applications and learn the most common risk factors. Some companies offer training programs that include classroom instruction on the basics of underwriting.
As new underwriters gain experience, they may work independently and handle more complex applications.
Licenses, Certifications, and Registrations
Employers may expect underwriters to become certified through coursework. These courses are important for keeping current with new insurance policies and changes in state and federal regulations.
Many options are available for certification or insurance specialty designations. Examples include the Life Underwriter Training Council Fellow (LUTCF) designation, the Chartered Property and Casualty Underwriter (CPCU) designation, and the Chartered Life Underwriter (CLU) certification.
Requirements for certification or designation vary and often include coursework or exams or both. Some credentials are available to new underwriters, but others require candidates to have a specified number of years of experience.
Advancement
Experienced underwriters may advance to become senior underwriters or underwriter managers. Underwriters may need certification to progress into these positions.
Job Outlook
Employment of insurance underwriters is projected to decline 2 percent from 2022 to 2032.
Despite declining employment, about 8,200 openings for insurance underwriters are projected each year, on average, over the decade. All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.
Employment
Automated underwriting software allows workers to process applications quickly, reducing the need for underwriters. As this technology continues to improve and become more widely adopted in the insurance industry, more underwriting decisions are expected to be made automatically.
However, there still will be a need for underwriters to review and update the criteria that run the automation. In addition, their analytical insight will be needed in specific fields, such as workers’ compensation, marine insurance, and health insurance.
Contacts for More Information
For more information about property and casualty insurance, visit
Insurance Information Institute (III)
For more information about certifications, visit
The American College of Financial Services
National Association of Insurance and Financial Advisors (NAIFA)
Similar Occupations
This table shows a list of occupations with job duties that are similar to those of insurance underwriters.
| Occupation | Job Duties | Entry-Level Education | Median Annual Pay, May 2022 | |
|---|---|---|---|---|
|
Actuaries |
Actuaries use mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty. |
Bachelor's degree | $113,990 |
|
Budget Analysts |
Budget analysts help public and private organizations plan their finances. |
Bachelor's degree | $82,260 |
|
Claims Adjusters, Appraisers, Examiners, and Investigators |
Claims adjusters, appraisers, examiners, and investigators evaluate insurance claims. |
See How to Become One | $72,040 |
|
Cost Estimators |
Cost estimators collect and analyze data in order to assess the time, money, materials, and labor required to make a product or provide a service. |
Bachelor's degree | $71,200 |
|
Insurance Sales Agents |
Insurance sales agents contact potential customers and sell one or more types of insurance. |
High school diploma or equivalent | $57,860 |
|
Loan Officers |
Loan officers evaluate, authorize, or recommend approval of loan applications. |
Bachelor's degree | $65,740 |