Insurance Underwriter Salary
Job Description for Insurance Underwriter
An insurance underwriter helps assess risks, analyze payment and premiums related to those risks, and determine if a business or entity should be insured. Insurance underwriters typically work in an insurance company and must have strong accounting and statistical analysis skills.Read More...
The underwriter may be asked to assess insurance companies' policy decisions that are outside the role or capability of field agents. They assess risk and either accept, reject, or modify potential policy applications. In addition, most companies want their underwriters to help build business by seeking new potential customers that fall within the risk analysis scenario of the insurer. As such, underwriters must be able to not only think analytically, but also be able to find possible new opportunities for their organization.
Insurance underwriters may be asked to look at existing policies and situations as well, particularly after a settlement has occurred. The underwriter must determine if new risk applies and then must make policy decisions to modify, continue, or decline further coverage.
This position typically requires, at minimum, a bachelor’s degree in finance or accounting. In addition, further company or field-specific training and certification may be required. Many companies choose to hire insurance underwriters only after a person has first gained experience in the industry as an associate underwriter.
Insurance Underwriter Tasks
- Underwrite, submit, approve or pend loans, and present decisions to management.
- Monitor existing policies for compliance with company guidelines.
- Manage underwriting territory and select new business based on analysis of their profitability.
- Analyze new and renewal business, data, claim history, loss experience, and outcome of liability decisions.
Common Career Paths for Insurance Underwriter
Insurance Underwriters often transition into Senior Underwriter positions, for which compensation tends to be much higher. On average, Senior Underwriters earn $73K per year. Becoming a Commercial Property Insurance Underwriter or a Casualty Insurance Underwriter is a common transition from an Insurance Underwriter role.
Insurance Underwriter Job Listings
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Popular Employer Salaries for Insurance Underwriter
The Travelers Companies, Inc., The Chubb Corporation, The Hanover Insurance Company, Liberty Mutual Insurance Group, and EMC Insurance Companies are leaders in the field that employ a large number of Insurance Underwriters. Liberty Mutual Insurance Group leads the field in terms of pay, with a median salary of $76K. Soaring salaries can also be found at The Chubb Corporation, The Travelers Companies, Inc., and The Hartford Financial Services Group, Inc., where earnings of $73K, $69K, or $69K are standard for Insurance Underwriters.
Other low-paying employers include Brown & Brown Insurance at $55K and The Hanover Insurance Company at $57K, though some Insurance Underwriters there earn up to $122K.
Popular Skills for Insurance Underwriter
Survey results show that Insurance Underwriters use a fair number of skills. Most notably, skills in Financial Analysis, Commercial, Customer Relationship Management, and Risk Management / Risk Control are correlated to pay that is above average, with boosts between 7 percent and 10 percent. Skills that pay less than market rate include Data Analysis, Customer Service, and Underwriting. Those educated in Insurance tend to be well versed in Commercial.
Pay by Experience Level for Insurance Underwriter
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For Insurance Underwriters, experience does not seem to be a major factor in determining pay. The median compensation for relatively untried workers is $48K; in the five-to-10 year group, it's higher at around $54K. Insurance Underwriters with one to two decades of relevant experience report an average salary of approximately $60K. Ultimately, more time spent in the workforce does seem to translate to bigger paychecks; seasoned veterans with more than 20 years of experience report a median income of $71K.
Pay Difference by Location
For Insurance Underwriters, busy Philadelphia offers a higher-than-average pay rate, 60 percent above the national average. Insurance Underwriters will also find cushy salaries in San Francisco (+50 percent), Denver (+41 percent), New York (+35 percent), and Los Angeles (+33 percent). In Houston, salaries are 14 percent below the national average and represent the lowest-paying market.
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