Salary, Job Description, How To Become One, and Quiz
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Insurance Underwriters
Insurance Underwriters review individual applications for insurance to evaluate degree of risk involved and determine acceptance of applications.
Table of contents
What they do
Insurance Underwriters review individual applications for insurance to evaluate degree of risk involved and determine acceptance of applications.
- Examine documents to determine the degree of risk from factors such as applicant health, financial standing and value, and condition of the property.
- Decline excessive risks.
- Write to field representatives, medical personnel, or others to obtain further information, quote rates, or explain company underwriting policies.
- Evaluate the possibility of losses due to catastrophe or excessive insurance.
Typical day
On a daily basis, Insurance Underwriters examine documents to determine the degree of risk from factors such as applicant health, financial standing and value, and condition of the property. They write to field representatives, medical personnel, or others to obtain further information, quote rates, or explain company underwriting policies.
A typical day for an Insurance Underwriter will also include:
- Evaluate the possibility of losses due to catastrophe or excessive insurance.
- Review company records to determine the amount of insurance in force on a single risk or group of closely related risks.
- Decrease the value of policy when risk is substandard and specify applicable endorsements or apply a rating to ensure safe, profitable distribution of risks, using reference materials.
- Decline excessive risks.
- Authorize reinsurance of policy when risk is high.
Other responsibilities
Besides their typical day, Insurance Underwriters also decline excessive risks. They may also authorize reinsurance of policy when risk is high.
On a weekly to monthly basis, Insurance Underwriters review company records to determine the amount of insurance in force on a single risk or group of closely related risks. They might also decrease the value of policy when risk is substandard and specify applicable endorsements or apply ratings to ensure safe, profitable distribution of risks, using reference materials.
In addition, they evaluate the possibility of losses due to catastrophe or excessive insurance.
Although specific duties may vary, many of them examine documents to determine the degree of risk from factors such as applicant health, financial standing and value, and condition of the property.
To some Insurance Underwriters, it is also their responsibility to write to field representatives, medical personnel, or others to obtain further information, quote rates, or explain company underwriting policies.
What is the job like
Job satisfaction
Is this job meaningful
70% said they were satisfied with their job and 37% said they found their job meaningful.
I’m a Commercial Lines Underwriter for TruStar, a speciality managing general agent (MGA). This means I work on behalf of an insurance company and we work with brokers to provide coverage for their clients’ needs that may be more complex and require specialty underwriting.
People typically think of personal insurance, such as for health, home, or auto. However, I work to help insure commercial and residential construction projects and liability insurance for several commercial industries, including general contractors. The risk details in commercial and residential construction are typically more complex as construction and jobsites have multiple moving parts – or risks – at the same time. The risk details within liability insurance for commercial industries are also typically more complex as there are some industries which may have a higher “severity” risk, which means the extent/size of a loss is greater, or a higher “frequency” risk, which means the possibility of multiple losses is greater but may not be as severe.
My typical day
Different applications come across my desk every day that require assessment, so there is a lot of variety. I also connect with brokers on new opportunities and ensure our existing clients are well taken care of.
The specialty aspect of my discipline means we work with non-standard risks or risks that can be more difficult to place and find a solution. Every day is different and every risk is different. While we may see similarities between risks, we can take what we know and apply it to everything that passes my desk.
Work from home setup
Pros
There are many pros to working in the insurance industry. For example, there is a consistent opportunity to grow and learn new things about a specific line, from sports insurance to construction insurance. There are also various roles and opportunities to move within the industry.
The great part of where I work is that TruStar is a smaller company where there is constant collaboration; we are always learning from each other and making sure everyone is taken care of. Every day I learn something new. Within the insurance industry, flexible hours, benefits, and a competitive salary are common perks.
Cons
It’s hard for me to think of a con in regard to my job, but if I had to say anything it would be the insurance industry is an industry based on deadlines, so it’s important to move with confidence!
Advice to students interested in getting into insurance
If you’re a student who is interested in a career in insurance, I recommend leveraging the power of LinkedIn. If you haven’t already, build a profile and start to create digital relationships with established professionals to learn more about the industry. This is something I did in school and the early days of my career and one that I recommend for those who want to explore the industry. As well, there are also a number of insurance-related job fairs throughout the year. Set aside time to attend so that you can meet with various companies and employees to get more information on this career path.
Based on what you learn from your research and conversations, you may be ready to check out college programs and specialty designations. Various colleges offer the Insurance Diploma program, which is typically a 2-year program that includes various insurance, business, and personal development-related courses. In addition to the curriculum, students have the option to take the institute exam. If successful, these credits are then used toward a CIP designation, which stands for Chartered Insurance Professional. Enrolment and/or credits in the CIP program is a common prerequisite for underwriting roles and is desired from many insurers when looking to hire.
Once you’re ready to start your career, a common entry-level role to expect for the commercial insurance industry is that of an Underwriting Associate. In this position, you typically work with experienced Underwriters to assess risk, work with pricing models, and help prepare the insurance contracts themselves. Underwriting Associates have a lot of exposure to the underwriting process and when experience and technical skills are built over the course of a couple years, the next step is the Underwriter role. Upon becoming an Underwriter, you will manage your own portfolio and clients. In addition to studying insurance in school, a lot of the learning comes from being in your role. Be willing to constantly learn and open to taking on new tasks, and take the time to find a mentor who can help with your career development. Doing these things will help you grow and become a well-rounded underwriter.
Pros
Suitable for people who like to follow routines.
Suitable for people who value relationships between co-workers and customers and want to work in a friendly non-competitive environment.
This career is perfect for people who love to work indoors.
Very good salary.
Cons
Not suitable for people who like to work with designs.
It is hard to get into this career. A considerable amount of work-related skill, knowledge, or experience is required for this career.
Demand for this career is declining.
How much do they make
Average salary
Average hourly wage
Entry-level Insurance Underwriters with little to no experience can expect to make anywhere between $43,210 to $54,850 per year or $21 to $26 per hour.
| Salary by experience | Annual | Hourly |
|---|---|---|
| Highest (Top 10%) | $129,550 | $62 |
| Senior (Top 25%) | $97,820 | $47 |
| Median | $71,790 | $35 |
| Junior (Bottom 25%) | $54,850 | $26 |
| No experience (Bottom 10%) | $43,210 | $21 |
This table shows the top 10 highest paying industries for Insurance Underwriters based on their average annual salary.
| Salary by industry | Annual | Hourly |
|---|---|---|
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities | $100770 | $48.45 |
| Accounting, Tax Preparation, Bookkeeping, and Payroll Services | $88060 | $42.34 |
| Office Administrative Services | $86690 | $41.68 |
| Insurance and Employee Benefit Funds | $85410 | $41.06 |
| Legal Services | $84960 | $40.85 |
| Insurance Carriers | $81590 | $39.22 |
| Nondepository Credit Intermediation | $80990 | $38.94 |
| Management, Scientific, and Technical Consulting Services | $79910 | $38.42 |
| Agencies, Brokerages, and Other Insurance Related Activities | $79240 | $38.10 |
| Credit Intermediation and Related Activities | $76850 | $36.95 |
View more salary by industries here.
Where can they work
Where can Insurance Underwriters work? Here is a table showing the top 10 largest employers of Insurance Underwriters including the average salary in that industry.
| Employers | Total Employed | Annual Salary | Hourly Wages |
|---|---|---|---|
| Insurance Carriers | 56120 | $81590 | $39.22 |
| Agencies, Brokerages, and Other Insurance Related Activities | 31890 | $79240 | $38.10 |
| Management of Companies and Enterprises | 4380 | $74770 | $35.95 |
| Nondepository Credit Intermediation | 2600 | $80990 | $38.94 |
| Credit Intermediation and Related Activities | 2480 | $76850 | $36.95 |
| Management, Scientific, and Technical Consulting Services | 1060 | $79910 | $38.42 |
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 810 | $100770 | $48.45 |
| State Government | 620 | $67630 | $32.51 |
| Employment Services | 420 | $72160 | $34.69 |
| Local Government | 240 | $72000 | $34.61 |
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What is the work day like
Working hours
Working schedule
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Telephone
How often do you have telephone conversations in this job?
Group discussions
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Public speaking
How often does this job require you to do public speaking?
Level of competition
How much competitive pressure is in this job?
What is the work environment like
Office-style environment
Indoors in an environmentally controlled condition
Warehouse-style environment
Indoors in a non-controlled environmental condition such as a warehouse
Outdoors
Outdoors exposed to all weather conditions
Outdoors – Under Cover
Outdoors but under cover (e.g. structure with roof but no walls)
How to become one
Difficulty to become one
Required level of education
What level of education do you need to perform the job?
Relevant majors
Actuarial Science
Insurance
Financial Risk Management
Risk Management
Relevant work experience
How much related work experience do you need to get hired for the job?
On The Job Training
How much on the job training do you need to perform the job?
Should you become one
Best personality type for this career
People with this personality type likes to follow set procedures and routines. They prefer working with data and details more than with ideas.
People with The Builder personality type likes practical and hands-on work. They prefer working with plants, animals, and real-world materials like wood, tools, and machinery.
People with The Thinker personality likes to work with ideas that require an extensive amount of thinking. They prefer work that requires them to solve problems mentally.
People with The Artist personality likes to work with designs and patterns. They prefer activities that require self-expression and prefer work that can be done without following a clear set of rules.
People with The Helper personality type likes to work with people and in teams. They prefer work that allows them to build relationships with others.
People with The Leader personality likes to start and work on projects. They also like leading people and making many decisions.
People with The Organizer personality type likes to follow set procedures and routines. They prefer working with data and details more than with ideas.
You can read more about these career personality types here.
People who are suitable for this job tend to like following set procedures and routines. They like working with data and details more than with ideas.
They also like starting up and carrying out projects. They like leading people and making many decisions. Sometimes they require risk-taking and often deal with business.
Take this quiz to see if this is the right career for you.
Work Values
Which values are the most important to a person’s satisfaction for this job?
You are someone who is results oriented. You prefer work that allows you to utilize your skills and abilities while at the same time giving you a sense of accomplishment.
You are someone who values job security, steady employment, and good working conditions. You also prefer work that keeps you busy all the time with something different to do every day.
You are someone who values job advancement and leadership roles. You prefer work that receives recognition for the work you do and jobs that are looked up to by others in the company and your community.
You are someone who likes to provide a service to others. You prefer a work environment where you can work with your co-workers in a friendly non-competitive environment.
You are someone who values a company that stands behind their employees. You prefer a work environment where everyone is treated fairly and is being supported by the company.
You are someone who likes to work on your own and make your own decisions. You prefer work that requires little supervision and are allowed to try out your own ideas.
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