Everything You Need to Know About an Underwriter Career

Having an underwriter career requires the ability to synthesize data into understandable components. Underwriters work in a variety of fields, but the insurance and loan industries are the most prevalent sources of employment. 

When people apply for policies or loans, underwriters take the information from the applicants. They make a decision about approving or rejecting the applicant, and if approved, they may complete the policy documents.

Job Description

Underwriters work in offices. In banks, they may be working in public areas of the bank to help customers, or they may work in the back to deal with the information that applicants provide. Most underwriters work basic 40-hour workweeks, though people who rise in the ranks often will have to put in more time. 

In general, working as an underwriter is a basic office job with business casual or more formal business attire required, depending on the industry. 

An underwriter receives information about an applicant. This information will include basic biographical information and may include approvals for credit or employment references. The underwriter will take this information and use it to make a loan decision. 

In many instances, the underwriter puts together policy documentation. For loans, this documentation includes the interest rate and the repayment schedule and may have a range of options for the client. Insurance underwriters typically work to give the client the policy that best fits the client’s situation.

Education

Most entry-level underwriters have a bachelor’s degree. While a degree in business administration or finance is preferable, someone with a different degree but with courses in accounting or law may be able to gain an entry-level underwriting position. The work requires a basic understanding of accounting and mathematical principles, as well as the ability to write clearly and concisely.

Beyond the entry-level jobs, underwriters will need to earn a master’s degree, usually in business administration, or gain industry-specific certification for advancement. The Registered Health Underwriter, for instance, is for people who work in the health insurance field while people who work as underwriters in life and casualty insurance may want to pursue the Chartered Property and Casualty Underwriter certification. 

These certifications open up the possibility for people to move into management positions within the underwriting industry.

Salary

Underwriters make a higher-than-average salary. In May 2008, the Bureau of Labor Statistics (BLS) reports that the average pay for an underwriter was around $56,000 annually. The top ten percent of underwriters make six-figure salaries while the lowest-paid underwriters earn only $35,000 per year. Pay varies based on the level of education and years of experience as well as the amount that the industry. 

Outlook

The number of underwriters between 1990 and 2010 did not change much. Career experts at the BLS expect that the number of underwriter jobs will decrease heading toward 2020. Much of the work that underwriters do, such as preparing loan payment schedules and calculating interest rates, now is computerized. 

Fewer underwriters can do the same amount of work, which means that there are fewer opportunities in the field. People who want to go into underwriting also may consider preparing themselves for related careers in accounting or finance.

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