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 might see a strong upturn in salary after transitioning into upper-level roles such as Senior Underwriter, a seemingly popular career choice. People currently working in the latter position report a noticeably higher median income of $73K per year. A Commercial Property Insurance Underwriter or a Casualty Insurance Underwriter is a typical transition from an Insurance Underwriter role.
Insurance Underwriter Job Listings
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Popular Employer Salaries for Insurance Underwriter
The Chubb Corporation, The Hanover Insurance Company, The Travelers Companies, Inc., EMC Insurance Companies, and Liberty Mutual Insurance Group are leaders in the field that employ a large number of Insurance Underwriters. The biggest paychecks can be found at Liberty Mutual Insurance Group — the median salary there is $77K. Soaring salaries can also be found at The Chubb Corporation, The Hartford Financial Services Group, Inc., and American International Group, Inc. (AIG), where earnings of $73K, $69K, or $68K are standard for Insurance Underwriters.
Others at the bottom of the scale for this job include Brown & Brown Insurance at $55K, and The Hanover Insurance Company where $57K is the norm, but it is worth noting that some Insurance Underwriters there earn up to $122K.
Popular Skills for Insurance Underwriter
Survey results imply that Insurance Underwriters put a diverse skill set to use. Most notably, skills in Commercial, Financial Analysis, Customer Relationship Management, and Risk Management / Risk Control are correlated to pay that is above average, with boosts between 8 percent and 10 percent. At the other end of the pay range are skills like Customer Service and Data Analysis. Most people experienced in Insurance also know Commercial.
Pay by Experience Level for Insurance Underwriter
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Experience and pay tend to be weakly linked for Insurance Underwriters — those with more experience do not necessarily bring in higher earnings. The average inexperienced worker's salary is approximately $48K, and people with five to 10 years of experience bring in more at around $55K on average. For Insurance Underwriters, 10 to 20 years of experience on the job amounts to an average salary of $60K. In the end, more experience does seem to mean larger paychecks; seasoned Insurance Underwriters with more than 20 years of experience earn a predictably higher median salary of $70K.
Pay Difference by Location
For Insurance Underwriters, busy Philadelphia offers a higher-than-average pay rate, 44 percent above the national average. Insurance Underwriters can also look forward to large paychecks in cities like Denver (+40 percent), San Francisco (+38 percent), Los Angeles (+34 percent), and New York (+34 percent). Houston ranks last in the field for pay, reporting salaries 13 percent below the national average.