Expertise in finance and insurance products, plus a knack for technology and analytical thinking, are crucial to the insurance underwriter’s job. Most commercial insurance underwriters work for insurance carriers, agencies and brokerages, determining how best to protect individuals and businesses from losses.
This involves calculating risk, determining a premium and writing a policy that covers this risk. Aspiring professionals can gain the expertise and specialized skills for an insurance underwriter career with the online Master of Business Administration (MBA) in Accounting and Finance program from Florida Institute of Technology.
Insurance Underwriter Job Outlook
The U.S. Bureau of Labor Statistics (BLS) projects that the employment of underwriters will likely decrease slightly between 2023 and 2033. Yet, despite declining employment, BLS estimates there will be roughly 7,800 openings for insurance underwriters per year, due to the need to replace workers who leave the profession.
The increase in automated underwriting software is responsible for a large degree of the general decline in employment for insurance underwriters. Underwriters with expertise in current software and skills in leveraging analytical insight will still be in high demand. Thus, job opportunities should be best for individuals with advanced education, financial expertise, cutting-edge technology experience and know-how, and demonstrated product development and risk assessment skills.
Insurance Underwriter Job Requirements
When insurance companies assume risk for individuals and businesses, they must calculate their potential losses and charge appropriate premiums to cover them. Insurance underwriter job duties include deciding whether to provide insurance and determining the terms. Insurance underwriting is a fine balance between taking a too-conservative approach — and possibly losing business — and paying excessive claims due to a liberal approach.
Most underwriters specialize in one of four insurance areas: life, health, property and casualty, or mortgage. Life and health insurance underwriters may further focus on either individual or group policies. Property and casualty insurance underwriters typically specialize in commercial or personal policies and are knowledgeable in fire, automobile, marine or homeowners’ insurance. An understanding of all four insurance areas is necessary for underwriters specializing in package policies. Commercial insurance underwriters may focus on construction, marine or other specialty coverage. Typically, they assess a business’s entire operation when approving or denying an application.
The standard duties of an insurance underwriter include using specialized software to calculate risk, analyze and rate insurance applications, recommend approval or denial, and set the premium accordingly. Insurance underwriters set the criteria to screen applicants and either approve or refute the final approval decisions. Automated systems software makes the decision-making process faster and more efficient.
Insurance underwriters typically work in comfortable office settings. The job may require travel, particularly in the commercial insurance field. A 40-hour week is standard.
Potential Salary for Insurance Underwriters
According to BLS data on employment and wages, the median annual income for insurance underwriters was $77,860 in 2023. The middle 50% (25th to 75th percentile of earners) made between $61,370 and $102,000 per year. Salaries for the highest-paid 10% exceeded $132,010 annually.
Those new to the field will typically start toward the lower end of the scale and may move up in salary with experience and advanced education. Similarly, success in this position, coupled with in-demand credentials such as an MBA in finance and accounting, can lead to career advancement and lucrative leadership roles. Every job seeker should research local trends and requirements to determine their employment prospects.
How to Become an Insurance Underwriter: Education Requirements
Entry-level insurance underwriter positions most often require a bachelor’s degree in business, accounting, finance or a related field. Some employers request insurance-related work experience. The increased complexity in tax laws and regulations affecting the insurance industry may lead employers to prefer master’s degree holders.
In addition, advancement may require obtaining designations and continuing education. The Institutes Knowledge Group offers a number of entry-level and specialized designations for professionals, such as the Associate in Commercial Underwriting (AU), the Associate in Personal Insurance (API), and the Chartered Property and Casualty Underwriter (CPCU).
Becoming an insurance underwriter can begin with earning an undergraduate degree in accounting or finance. Gaining experience, professional designations, and an MBA in accounting and finance can help advance a career to upper-level roles.
Coursework in a specialized MBA in accounting and finance program typically covers subjects like investment management, financial management, strategic cost management and current issues. Core MBA courses also delve into the advanced, cross-functional management studies needed for leadership preparation. Employers can be confident that graduates of an MBA program with a concentration in accounting and finance can do the following:
- assess and manage risk using statistical, economic and financial data
- use critical thinking to make decisions and solve real-world problems
- help organizations achieve financial objectives
- effectively communicate financial data, information and analytical insight
- leverage advanced skills and knowledge to succeed as an insurance underwriter
The Skills Needed to Pursue an Insurance Underwriter Career Path
This career can be a good fit for those who enjoy focusing on the granular details and analyzing and assessing facts and figures. Sound judgment and integrity are also necessary for embarking on an insurance underwriter career path.
A great way to begin this journey is by enrolling in the online MBA in Accounting and Finance program from Florida Tech. This degree program provides the advanced skills and expertise to succeed in this fascinating job as well as many other high-level accounting and financial leadership roles.
Learn more about Florida Tech’s online MBA in Accounting and Finance program.
