If you are a decisive person with an eye for detail and strong analytical skills, then becoming an insurance underwriter may be a great option for you. As highly trained professionals in the financial industry, insurance underwriters are responsible for reviewing applications for insurance coverage to determine the risk involved in insuring an individual or company. Since automated underwriting software now allows insurance applications to be processed more quickly than ever before, employment of insurance underwriters is expected to decline by 6% before 2022, according to the Bureau of Labor Statistics. That being said, there will still be a need for underwriters with a strong background in finance to evaluate automated recommendations and replace workers who retire. Read on to find a full job description to determine if entering the competitive field of insurance underwriting is still the best decision for reaching your professional goals.
What Does an Insurance Underwriter Do
As the main link between insurance companies and insurance agents, underwriters are responsible for utilizing computer software to determine whether to provide insurance to new applicants and under what terms. After taking specific information about clients and entering the data into the program, insurance underwriters review the recommendations on coverage and premiums to make the final decision on approving or declining the application. In order to achieve a balance between cautious and risky decisions, underwriters need to conduct in-depth analysis on clients’ risk factors to ensure the company does not have to pay too many claims. If screening applicants on the basis of these set criteria is too difficult, the underwriters may also consult with additional sources, including medical documents, credit scores, and driving records.
Where Do Insurance Underwriters Work
According to the Bureau of Labor Statistics, there were around 106,300 insurance underwriters employed throughout the United States as of 2012. The vast majority of insurance underwriters are employed by insurance carriers. However, underwriters can also find employment opportunities in brokerages, credit intermediation services, government agencies, and management of companies. Depending on their individual interests, insurance underwriters may specialize in reviewing applications for commercial, personal, homeowners’, health, marine, automobile, property, and life insurance policies. While most insurance underwriters work full-time in a 40-hour work week during business hours in an office setting, some property and casualty underwriters may need to travel to review properties in person.
How to Become an Insurance Underwriter
Despite the fact that related work experience in insurance companies and strong computer skills were once enough to launch a career as an insurance underwriter, employers typically require candidates to have a bachelor’s degree to gain employment. To stand out in the increasingly competitive field, it is recommended that you pursue a four-year undergraduate degree with a major in business administration, finance, statistics, mathematics, or economics. Employers often expect underwriters to receive certification after at least three years of insurance experience. Within The Institutes, underwriting certifications are available for becoming an Associate in Commercial Underwriting (AU), Accredited Adviser in Insurance (AAI), or Chartered Property Casualty Underwriter (CPCU).
Related Resource: Chartered Financial Analyst
In accepting liability for possible losses by clients, insurance underwriters are involved in making one of the most important decisions made by insurance companies. As insurance carriers assume billions of dollars of risk each year, it is essential to have expert underwriters who can ensure the company does not lose businesses or reimburse excessive claims. Therefore, becoming an insurance underwriter may be the perfect fit if you want to help insurance companies make the best financial decisions by balancing the risks of coverage.
