What Insurance Underwriters Do

Insurance underwriters decide whether to provide insurance and under what terms. They evaluate insurance applications and determine coverage amounts and premiums.

Work Environment

Insurance underwriters work indoors in offices. Most work full time.

How to Become an Insurance Underwriter

Employers prefer to hire candidates who have a bachelor’s degree. However, insurance-related work experience and strong computer skills may be enough. Certification is generally necessary for advancement to senior underwriter and underwriter manager positions.

Job Outlook

Employment of insurance underwriters is projected to decline 11 percent from 2014 to 2024. Automated underwriting software allows workers to process applications more quickly than before, reducing the need for underwriters.

Growth & Trends

This occupation supported 106,300 jobs in 2012 and 103,400 jobs in 2014, reflecting a decline of 2.7%. In 2012, this occupation was projected to decrease by 6.1% in 2022 to 99,800 jobs. As of 2014, to keep pace with prediction, the expected number of jobs was 105,000, compared with an observed value of 103,400, 1.5% lower than expected. This indicates current employment trends are about on track with the 2012 trend within this occupation. In 2014, this occupation was projected to decrease by 11.1% in 2024 to 91,600 jobs. Linear extrapolation of the 2012 projection for 2022 results in an expected number of 98,500 jobs for 2024, 7.5% higher than the 2014 projection for 2024. This indicates expectations for future employment trends are much worse than the 2012 trend within this occupation.

Insurance Underwriters Employment and Labor Information 2023

Insurance Underwriters Employment Brief:

Review individual applications for insurance to evaluate degree of risk involved and determine acceptance of applications.

Insurance Underwriters Job Description

Here is a Job Description an employer might post for potential Insurance Underwriters.

Insurance Underwriters Responsibilities and Duties:

• Review company records to determine amount of insurance in force on single risk or group of closely related risks.
• Decline excessive risks.
• Decrease value of policy when risk is substandard and specify applicable endorsements or apply rating to ensure safe, profitable distribution of risks, using reference materials.
• Authorize reinsurance of policy when risk is high.
• Examine documents to determine degree of risk from factors such as applicant health, financial standing and value, and condition of property.
• Evaluate possibility of losses due to catastrophe or excessive insurance.
• Write to field representatives, medical personnel, or others to obtain further information, quote rates, or explain company underwriting policies.

Typical Daily Tasks of Insurance Underwriters:

• Getting Information.
• Making Decisions and Solving Problems: Authorize financial actions.
• Analyzing Data or Information: Analyze health-related data. Assess risks to business operations.
• Working with Computers.
• Establishing and Maintaining Interpersonal Relationships.
• Processing Information: Verify accuracy of records.
• Communicating with People Outside the Organization.
• Organizing, Planning, and Prioritizing Work.
• Communicating with Supervisors, Peers, or Subordinates.
• Evaluating Information to Determine Compliance with Standards.

Insurance Underwriters Skills and Requirements:

• Active Listening Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.
• Persuasion Persuading others to change their minds or behavior.
• Systems Analysis Determining how a system should work and how changes in conditions, operations, and the environment will affect outcomes.
• Technology Design Generating or adapting equipment and technology to serve user needs.
• Equipment Maintenance Performing routine maintenance on equipment and determining when and what kind of maintenance is needed.
• Equipment Selection Determining the kind of tools and equipment needed to do a job.
• Operations Monitoring Watching gauges, dials, or other indicators to make sure a machine is working properly.
• Systems Evaluation Identifying measures or indicators of system performance and the actions needed to improve or correct performance, relative to the goals of the system.
• Management of Personnel Resources Motivating, developing, and directing people as they work, identifying the best people for the job.
• Reading Comprehension Understanding written sentences and paragraphs in work-related documents.

Insurance Underwriters Education and Training:

Typical education for include: Bachelor's degree.

Insurance Underwriters Salary, Wages, and Salary and Job Outlook

Insurance Underwriters average pay is: $76230 per year according to the U.S. Bureau of Labor Statistics. Employees who work in Nondepository Credit Intermediation are the highest paid making $43.83, while Management of Companies and Enterprises make the least at $36.86 per hour.Here are the top city/metro areas with the highest paying salaries for a Insurance Underwriters: