Become an Insurance Underwriter

Basics of an Insurance Underwriter

Have you ever wondered who decides what you pay in auto, health or life insurance? What kind of calculations are made to assess what risks individuals take on a regular basis, and how do those calculations equate to a specific monetary amount?

Insurance underwriters find those answers. They analyze information provided by prospective insurance beneficiaries, contact medical professionals and other specialists to gather supporting information about risks, use statistical analysis and underwriting software to discover recommendations about the data, and finally decide whether to insure a client. These methods also help insurance underwriters decide how much premiums and insurance discounts should cost.

Here is what you may consider when choosing an online insurance underwriter program:

  • Company prerequisites for insurance underwriter programs vary. However, most employers prefer to hire candidates with either a relevant bachelor's degree or a combination of work experience and computer skills, according to the U.S. Bureau of Labor Statistics[i].
  • Entry-level insurance underwriter positions ordinarily involve training programs that put workers under the supervision of senior staff members.
  • Employers tend to favor candidates that have gained certifications such as the Associate in Commercial Underwriting designation and the Associate in Personal Insurance designation, which are both offered by The Institutes.
  • The American College of Financial Services also offers certifications that may increase employment opportunities.

Is an Online insurance Underwriter DEGREE PROGRAM FOR YOU?

nsurance underwriter professionals require a diverse range of experience in business, finance, economics, math and particular underwriting software systems. Specific certifications are also preferred among employers. Some professionals choose to enroll in online courses to build experience with insurance underwriting tools and to gain relevant knowledge in related subjects. Moreover, online classes may be easier to fit into a busy schedule, as they often do not require a commute and can be completed at the student's convenience.

INSURANCE UNDERWRITER CAREER PATHS AND POTENTIAL SALARIES

Insurance underwriter courses may prepare you to pursue a variety of other professions in risk mitigation and prediction. Research which options may be available using statistics compiled by the BLS.

Insurance Underwriters (i)

Insurance underwriters evaluate the financial risk of covering prospective insurance beneficiaries and analyze information about current clients to decide whether to raise or lower premiums. They use a combination of business skills, computer software tools, mathematical analysis, financial research and economic expertise to perform these tasks.

  • Median Salary: $69,760 per year
  • Job growth through 2026: -5% (Decline)
  • Typical Entry-level education: Bachelor's Degree

Claims Adjusters, Appraisers, Examiners, and Investigators (ii)

Claims adjusters, appraisers, examiners, and investigators evaluate insurance claims. They decide whether an insurance company must pay a claim, and if so, how much.

  • Median Salary: $64,690 per year
  • Job growth through 2026: -1% (Little or no change)
  • Typical Entry-level education: High school diploma or equivalent

Loan Officers (iii)

Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses. Most loan officers are employed by commercial banks, credit unions, mortgage companies, and related financial institutions. Most loan officers work full time, and many work extensive hours. Except for consumer loan officers, traveling to visit clients is common.

  • Median Salary: $64,660 per year
  • Job growth through 2026: 11% (Faster than average)
  • Typical Entry-level education: Bachelor's Degree

(i) bls.gov/ooh/business-and-financial/insurance-underwriters.htm | (ii) bls.gov/ooh/business-and-financial/claims-adjusters-appraisers-examiners-and-investigators.htm| (iii) bls.gov/ooh/business-and-financial/loan-officers.htm