Vice President (VP), Underwriting Salary
Salaries for VPs of Underwriting in the United States are generous, with average pay above six figures ($115K) per year. Nearly all report receiving medical coverage from their employers and most collect dental insurance. Women are just slightly outnumbered, with male VPs of Underwriting making up 57 percent of survey respondents. Work is enjoyable for VPs of Underwriting, who typically claim high levels of job satisfaction. This report is based on answers to PayScale's salary questionnaire.
Job Description for Vice President (VP), Underwriting
The practice of underwriting is important for financial institutions and insurers, as it is the mechanism by which they determine their exposure to risk and the amount of premium or incoming revenue which will help to mitigate it. A vice president (VP) of underwriting is a board-level executive who is generally responsible for developing and adhering to cost- and risk-benefit systems, and their goal is to help maintain a good balance of profitability and risk management/leverage.Read More...
As a vice president-level executive, they typically manage other departments, such as risk management, sales teams, and analytics groups, and they may also head their own dedicated underwriting executive teams. Managers of these teams typically issue reports to the VP of underwriting, who is expected to analyze them and draw valid conclusions about risks the company may face due to sales policies, financial instruments, or other business practices which introduce risk to the company's operations. They also carefully monitor investments made by the company, cash-flow, and liquidity of the company as a whole and, based on careful analysis, adjust and change risk-management systems throughout the company to maintain a balance of profit and exposure.
VPs of underwriting often have a strong education background and extensive practical experience in the field. A post-graduate degree in business management may be required for this position, and many companies prefer applicants who have experience in policy underwriting and/or management. Aspiring underwriting VPs should also have outstanding verbal and written communication skills, provide regular reports to other board members and shareholders, and expect to work fairly long hours in an office environment.
Vice President (VP), Underwriting Tasks
- Responsible for management of underwriting department.
- Supervise, train and develop staff in portfolio-building and underwriting skills.
- Oversee risk and account management.
- Lead underwriting and approval process to maximize profits and minimize losses.