Insurance Underwriting Job Description

An insurance underwriter works to set insurance rates.

An insurance underwriter determines the possible risk of providing insurance. Underwriters are key employees for insurance companies because their work assures profitability and lessens risk and uncertainty. Though underwriting is a well established profession, the changes in technology and on-line information have greatly impacted underwriting.

Job Duties

An insurance underwriter works primarily at a computer.

An insurance underwriter is responsible for determining the likelihood of an event with regard to providing insurance. The underwriter not only determines whether or not to offer insurance, but also at what rate that insurance is most likely to be profitable. An insurance underwriter uses historical data as well as situation-specific data to make this determination. Underwriters today rely heavily on computer programs that assist with computing the risk.

Job Requirements

A bachelor's degree is generally required.

The minimum requirements for most insurance underwriting jobs are a bachelor's degree and related experience. Degrees in accounting, business administration and finance are favored by many companies but are not a requirement. Strong computer skills are another asset for those seeking insurance underwriting employment. Insurance experience through sales or other aspects of the industry is also desirable for underwriting applicants.

Earnings and Compensation

Insurance underwriting pays well.

According to the U.S. Bureau of Labor Statistics (BLS) Occupational Outlook Handbook, insurance underwriting generally pays between about $45,000 per year and $75,000 per year. Underwriters work for insurance companies, which generally provide a generous benefits package.

Job Outlook

Underwriter openings should remain strong.

The BLS Occupational Outlook Handbook indicates that the number of new jobs in underwriting will decline. However, the Occupational Outlook Handbook states that due to retirement and other reasons, job prospects will remain good. One reason that underwriting positions open is that underwriters often advance higher in the company.

Employers

Underwriters often work at corporate offices.

The majority of insurance underwriters will work at an insurance company's corporate office. However, some underwriters do work in local and regional offices where high volume dictates that local decisions can be made quickly. Stricter government regulation of the insurance industry could increase the demands for underwriters to be employed by the government.

References

• U.S. Bureau of Labor Statistics: Occupational Outlook Handbook, 2010-2011 Edition, Insurance Underwriters