A Michigan Jobs & Career Portal service.

Underwriters review individual, group, and business applications for insurance. They evaluate the risks within the company's guidelines and decide whether or not the risk is acceptable.

JOB DUTIES

Underwriters may:

Examine such documents as application forms, insurance reports, insurance maps, medical reports, or review data compiled by the underwriting analyst

Review company records to determine the amount of insurance in force on a single risk or group of closely related risks and evaluate the possibility of losses

Evaluate property inspection reports to determine the degree of risk (casualty Underwriter)

Apply rates to ensure a safe and profitable distribution of risks

Decline risks which are excessive

Dictate correspondence to field representatives, medical personnel, and other insurance companies to obtain information, quote rates

Machines, equipment, and work aids used may include:

Underwriters may specialize in these areas:

Underwriters review individual, group, and business applications for insurance. They evaluate the risks, within the company's guidelines, and decide whether or not the risk is acceptable.

169.267-046 UNDERWRITERS usually specialize in life (including medical) insurance or in one type of casualty insurance underwriting. Underwriters may further specialize in group or individual policies. Casualty Underwriters may specialize in automobile, fire, liability, worker's compensation, or homeowners insurance. Generally, workers who underwrite one type of insurance do not underwrite other types. Those who do underwrite several types of insurance are known as Multi-line Underwriters. Some Underwriters, called business account underwriters, handle business insurance exclusively. They often evaluate a firm's entire operation in order to appraise its insurance application.

In addition to learning about these specialties, you may also find it helpful to explore the following Career Explorations:

WORKING CONDITIONS AND REQUIREMENTS

Underwriters generally work under the direction and supervision of a Chief Underwriter or Underwriting Manager. Those in small firms, may, in turn, supervise other office employees.

Underwriters work in pleasant, temperature-controlled offices. Most have desk jobs that require no unusual physical activity. They are, however, subject to stress. Underwriters must be willing to accept considerable responsibility for their decisions.

Their average workweek is 35 to 40 hours. Some have "flextime" (setting one's own schedule within defined guidelines). They may work overtime during times of peak load in policy applications.

Underwriters may travel occasionally to the applicant's work site, to advise field personnel, or to attend seminars and conferences. They are usually reimbursed for travel.

With few exceptions, insurance companies are not unionized, but some have staff associations which consult regularly with company management. Underwriters also frequently belong to local or national underwriting associations. Those who have earned professional designation, such as Chartered Property Casualty Underwriter (CPCU), may belong to a professional society or association and usually pay fees or dues.

You Should Prefer:

• Activities of a technical nature

• Activities which use special machines, processes, or methods

You Should Be Able To:

• Direct, control, and plan an entire activity or activities of others

• Rate information by using personal judgment and measurable standards

• Work within precise limits or standards of accuracy

• Reason well and make decisions

• Know the meanings of words/ideas and present information effectively

• Perform arithmetical operations quickly and accurately

• See detail/errors in numbers/spelling/punctuation in written materials

Math Problem You Should Be Able to Solve:

If 100 out of 250 teenagers under the age of 20 file a claim with your insurance company, what is the expected percentage that someone under 20 will file a claim?

Reading Example You Should Be Able to Read and Comprehend:

This program provides income protection should an Associate become ill or injured off the job and be unable to work.

Writing Example You Should Be Able to Produce:

You should be able to write a report explaining a potential customer's risk status with your insurance company.

Thinking Skill You Should Be Able to Demonstrate:

You should be able to look at a potential customer's records and decide if he or she would be an asset for your company.

To advance to senior level underwriter positions, many insurance companies require underwriters to take one or more of the recognized independent study programs. They are available through the American Institute of Property and Liability Underwriters, National Association of Life Underwriters, Insurance Institute of American, and Academy of Life Underwriting . Top professional designations include Chartered Property Casualty Underwriter (CPCU), Chartered Life Underwriter (CLU ), Chartered Financial Consultant (ChFC), and Fellow of the Academy of Life Underwriters .

[back to top]

EDUCATION AND PREPARATION OP PORT UNITIES

NOTE: On-The-Job Training provided by the employer or a High School Diploma or Equivalent or a Bachelor's Degree (four years of study beyond High School) may qualify a person for this occupation.

The following education and preparation opportunities are helpful in preparing for occupations in this Career Exploration Script:

***SCHOOL SUBJECTS***

0600 BUSINESS, 0700 CAREERS , 0900 COMMUNICATIONS , 1000 COMPUTERS , 2200 MATH

***VOCATIONAL EDUCATION PROGRAMS***

There are no Vocational Education Programs related to this Career Exploration Script.

***POSTSECONDARY PROGRAMS***

084 INSURANCE

Programs in Insurance provide opportunities to gain the knowledge and skills for careers in the insurance industry.

Courses vary from school to school but may include:

          Search for a College and/or Instructional Program

***APPRENTICESHIP OPPORTUNITIES***

There are no Apprenticeships related to this Career Exploration Script.

***MILITARY TRAINING PROGRAMS***

There are no Military Programs related to this Career Exploration Script.

           E-Learning Courses and Programs

[back to top]

OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY

Because of the technical aspects of this occupation, there are no direct ways of gaining experience as an Underwriter. Summer and part-time work in the home offices of insurance companies may provide opportunities to observe the work of an Underwriter. Experience may be gained through advancement from insurance agent (Career Exploration Script#104) or insurance adjuster (Career Exploration Script #48) to Underwriter. Postsecondary programs in insurance may provide related training.

School-to-Work opportunities include:

informal apprenticeships

mentorships

job shadowing experiences

touring a local Underwriter employer

internships

volunteer work with a Underwriter employer

community service work with an agency

Direct application to insurance companies is the usual method of entry. For entry-level positions, most companies seek college graduates who have a degree in liberal arts or business administration. Some small companies hire persons without college degrees as trainees. Assistance in locating a job may be obtained from college placement offices, professional associations, and local offices of Michigan Works!.   In addition, you should access and search the Internet's on-line employment services sites such as:

               You should also enter an electronic resume on these on-line services.

[back to top]

EARNINGS AND ADVANCEMENT

Earnings of Underwriters differ widely depending on location, size of the firm, and individuals' experience and level of responsibility.

Nationally, recent graduates of Bachelor's degree programs in insurance underwriting had beginning average salary offers of $40,340 in mid 2006. Most had offers ranging between $36,500 and $45,000. In 2006, experienced Life Underwriters had average salaries of $55,532 per year, with earnings ranging between $50,105 and $65,577 annually. Senior Life Underwriters averaged approximately $59,900 per year, with earnings ranging between $55,900 and $74,900.

Experienced Group Underwriters had earnings of $57,453 per year, with salaries ranging from $52,450 to $60,510 (mid 2006). Senior Group Underwriters averaged $66,100 per year. In mid 2006, the median annual earnings of all Underwriters were $52,770.

Underwriters working in the Great Lakes region (includes Michigan ) earned the following annual salaries (2006):

In addition to their base salaries, Underwriters may receive bonuses.

Underwriters generally receive paid vacations, life and health insurance, and retirement plans. Some employers may pay the costs of continuing education, including independent study courses. These benefits are usually paid for, at least in part, by the employer.

Some Underwriters begin as underwriting trainees after high school graduation and advance with training and experience. However, most individuals start underwriting careers after college graduation. After gaining experience, training, and by passing examinations for professional designations, Underwriters may advance to more responsible positions in underwriting or management. A few advance to senior managerial or executive positions after obtaining considerable experience and demonstrating their ability.

[back to top]

EMPLOYMENT AND OUTLOOK

About 101,100 Underwriters were employed nationally in 2004. Employment of Underwriters is expected to grow more slowly than the average for all occupations through the year 2014. The industry distribution for Underwriters looked like this:

The trend toward self-insurance is expected to lower demand for some property and casualty underwriters. Businesses that self-insure set a rate for their own company and pay premiums into a reserve fund. Additionally, many property and casualty companies are foregoing personal lines of insurance-especially automobile, and concentrating on commercial lines of business. The increased use of "intelligent" or "smart" underwriting software systems is also slowing the demand for new underwriters. These systems automatically analyze and rate insurance applications, then accept or deny the risk without human intervention.

Opportunities for Underwriters should occur from new insurance products that cover personal injury or business liability for electronic commerce web sites, as well as, company web sites. These insurance products are relatively new but major insurers and computer suppliers are teaming up to develop these data insurance policies.

Underwriters specializing in one particular area of insurance may find it difficult to transfer to another type of insurance if their jobs are threatened. Because insurance is regarded as a necessity, regardless of economic conditions, underwriters are unlikely to be laid off because of a recession. In addition, openings will occur as Underwriters retire or leave for other reasons.

About 1,775 Underwriters were employed in Michigan . Most worked for companies that offer casualty insurance and independent underwriting services. Some worked for companies that offer accident and health, financial responsibility (surety), and real estate title insurance.

Employment of Underwriters in Michigan is expected to increase about as fast as the average for all occupations through the year 2012. An average of 50 annual openings is expected, with 30 due to replacement of those who retire, die, or leave the labor force for other reasons, and 20 due to annual growth. Additional openings will occur as Underwriters change jobs or occupations.

The insurance industry is not greatly affected by economic ups and downs. Even in poor economic times, sales of health, auto, and homeowner's insurance will increase with a growing population. However, the growth in insurance needs has not led to increased employment opportunities for Underwriters because of the use of underwriting software and companies that self-insure.

MICHIGAN 'S EMPLOY MENT OUT LOOK TO 2002 - 2012

SOURCES OF ADDITIONAL INFO RMATION

Printed Occupational information is available upon written request from the sources below.

  Copyright © 2006 Michigan Department of Labor & Economic Growth