Become an Insurance Underwriter

An insurance underwriter decides whether a person should receive insurance and what kind of insurance coverage that person should get based on the presented data. To become an insurance underwriter, you will most likely start as an underwriter trainee or assistant underwriter with an organization. Because some people consider the field boring, the insurance field is wide open, which may make it easier for you to find an entry-level position. Nonetheless, to move up to become a senior underwriter in a company, you have many hoops to jump through.

Steps

Getting an Education

1. Focus on your high school education. To be an underwriter, you need stellar math skills, so don't be afraid to dive deeply into your math classes. You may also want to take statistics or accounting as an elective if possible. If your school offers them, you should take classes that introduce you to the law and business practices; if your school doesn't, consider taking some concurrently at a local community college if you can.
2. Get a bachelor's degree. You can become an underwriter with pretty much any bachelor's degree, so you don't need to start over if you already have a degree. Nonetheless, most companies would prefer you have a degree in business, accounting, or law or that you at least took some classes in those areas. Math and economic degrees are also helpful.
3. Gain experience. One of the best ways to build up experience is to work as intern. Most big companies will hire interns, including insurance companies. Look for internship positions on the job section of big insurance websites, but you may also be able to find internships through your university. You can work over the summer, or you can try tackling it during the year, as well. Sometimes, you can even earn course credit for internships.
   • Most companies are well aware that you are there to learn as well as provide work. They'll provide you with training sessions you won't get in college, as well as allow you to network with people in the field.
4. Graduate with a good GPA. While it's not essential to have a 4.0 GPA, a higher GPA may help when you're applying for your first job. You can list it on your resume when you're first on the job market.

Developing the Needed Skills

1. Learn to be analytical. You need to be able to take data and pull the important information out of it to help you solve problems. Your math and statistics classes will help with this skill.
   • Work on being analytical when going about your day-to-day life. For instance, when looking at an online article, analyze the presented facts to see if they add up to the conclusion the writer is making. In addition, go beyond the article to see if other data supports the writer's conclusion. This process will slowly teach you to pull out what information is important and use that information to make an informed decision.
2. Work on your decision-making skills. Insurance underwriting is not the place for indecisiveness. You need to be able to look at what you analyzed and make a decision.
   • One way to build decision-making skills is to analyze decisions in your everyday life. If you're trying to buy a camera, take the time to evaluate the information available. Decide what is most important to you in a camera, and see which models measure up.
3. Pay attention to detail. Many classes can teach you how to pay attention to detail, from grammar classes to chemistry to math and statistics. Most of the time, paying attention to detail just means having the patience to be thorough and to go over everything with a fine-tooth comb, sometimes multiple times.
   • Learn to write it down. You don't need to be able to remember every detail in your head. Use your computer and paper to your advantage. You'll be able to make connections on paper that you may not be able to in your head.
   • You can teach yourself to pay closer attention to detail by trying a detail-oriented hobby, such as logic puzzles, stained glass, or even knitting. These types of hobbies will teach you to focus on the nitty-gritty details, which can help you in your professional life as well.
4. Learn to communicate. You have to be able to deal with people, as you will need to convey why you will or will not insure somebody, for instance. You'll also need to talk to various professionals, such as medical professionals, to find out more about a person before making a decision.
   • One way to improve your communication skills is to take a speech class. Though you won't be giving speeches (most of the time), speech class may help you build confidence when talking to others. English classes are also important, as they help you build skills in written communication.
   • You can also try getting any job in customer service or retail, as you constantly must deal with people, and it can help build up your skills.

Gaining a Position in the Insurance Field

1. Find an insurance company you want to work for. If you don't want to move, try to find one in your area. If you're interested in what the company stands for before applying, look at the mission statements and recent news on the company.
   • Consider what the company specializes in. If you're more interested in the medical side, make sure to apply at companies that offer medical insurance. If you're more interested in insuring cars, try a car insurance company.
   • Look at benefits. Salary is important, but other benefits are important as well, such as vacation time, a flexible work schedule, and things like gym memberships. Look for interesting perks that show the company values you as an employee. For instance, Nationwide offers "Life Resource Counselors." These counselors help with everyday problems, such as finding a plumber or finding a nursing home for your parents.
   • Another thing to look at is voluntary turnover rates. For instance, Aflac only has a 5 percent turnover rate, meaning most people want to stay in their jobs at that company.
2. Apply for junior underwriter. The position of junior underwriter is usually an entry-level position. Another name for this position is assistant underwriter. However, getting any entry level position can help you get your foot in the door. You can always transfer to the department you want later.
3. Use your internship experience. If you did work as an intern, apply for a job at the same company. Many companies are more willing to hire someone they know has a good work ethic, and if you've proved yourself as an intern, you'll have an easier time getting in the door.
   • However, even if you don't apply at the same company, you can use your experience to help you gain a position. You actually worked at an insurance company, whereas many of your peers coming out of college may not have that same experience.

Becoming Certified

1. Work for several years. Most certifications require that you have experience in the field before becoming certified. For instance, The Institutes requires 2 years of experience in insurance for some certifications, where you worked for at least 17.5 hours a week. This time must have been completed in the past 5 years.
   • The Institutes is one of the major organizations that provides certification to the insurance industry.
2. Choose your certification. Once you're a junior underwriter, it should be obvious which certification is best for you. In fact, your company will likely have a preferred certification for you to obtain and will also likely sponsor you for certification.
   • For instance, The Institutes offers certification in Chartered Property Casualty Underwriter and Associate in Commercial Underwriting.
3. Matriculate. Just like college, you'll need to matriculate with the certification program you choose. Usually, this process just means submitting a form and fee. It means you're joining the program officially. You don't have to do it right away, but you should do it pretty early.
4. Do the coursework. All certification requires that you take coursework before taking exams. For instance, the Chartered Property Casualty Underwriter certification requires that you take about eight classes. Four of those classes are "foundation" courses, while 3 are from a concentration you'll chose; the last one is an elective option. Each one will take you 4 to 8 weeks, on average.
   • You take these classes online, studying textbooks and course material to pass the exam at the end of class.
5. Pass an exam. The exams can vary from certification to certification. For instance, in the Chartered Property Casualty Underwriter certification, you take an exam at the end of each class. However, you also must take an exam on ethics at the end of your certification process, unless you already took a course on it.

Getting Moved Up to Senior Underwriter

1. Pick a specialty. Different companies specialize in different areas. If you're specialized, you'll be more likely to be needed by that specific company. You can underwrite everything from medical insurance to casino insurance. Once you pick your specialty, read up in that area; in fact, it may not hurt to take a class in that area if you're able to.
   • If you're curious what specialties are in demand, look at current job listings to see what insurance companies are looking for.
2. Create relationships with brokers. As an underwriter, you will be working with brokers. You will be the one to decide whether a broker's clients receive insurance. Therefore, you need to be on good terms with your brokers. Make sure to establish good relationships early on with your brokers.
   • Remember people's names. Ask how they are doing, and really mean it. Try to remember what each broker likes, and provide that kind of service. The little things will help get you noticed, as well as help establish relationships. It doesn't hurt to keep a written record of details to help you remember.
   • These relationships will show in how much work you get done and how well you do it. Your boss will notice if you are on good terms with your brokers, which can help you move up later.
3. Do your job well. It goes without saying that the best way to be noticed is to do your job well. In underwriting, that means paying attention to detail and creating the right plan for the right customer. The right plan will be noticed because your client will be satisfied with what you've done, and you'll get fewer complaints.
   • A good plan will provide the coverage your customer needs, but it won't put your company up for unnecessary risk.
4. Apply for positions. Even though sometimes you may be promoted to senior positions without applying for them, let your superiors know want to be considered by applying for positions. If you feel like you are waiting too long to move up, you can also apply for positions outside of the company. If don't actually want to move companies, you can use getting hired for other positions as leverage to move yourself up in your own company.

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Sources and Citations

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