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Summary

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Video transcript available at https://www.youtube.com/watch?v=4PG3pK1Xv9o.
Quick Facts: Insurance Underwriters
2022 Median Pay $76,230 per year
$36.65 per hour
Typical Entry-Level Education Bachelor's degree
Work Experience in a Related Occupation None
On-the-job Training Moderate-term on-the-job training
Number of Jobs, 2022 125,500
Job Outlook, 2022-32 -2% (Decline)
Employment Change, 2022-32 -3,000

What Insurance Underwriters Do

Insurance underwriters evaluate insurance applications and decide whether to approve them.

Work Environment

Insurance underwriters work in an office setting during regular business hours. Most work full time.

How to Become an Insurance Underwriter

Insurance underwriters typically need a bachelor’s degree to enter the occupation. Certification may be beneficial.

Pay

The median annual wage for insurance underwriters was $76,230 in May 2022.

Job Outlook

Employment of insurance underwriters is projected to decline 2 percent from 2022 to 2032.

Despite declining employment, about 8,200 openings for insurance underwriters are projected each year, on average, over the decade. All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.

State & Area Data

Explore resources for employment and wages by state and area for insurance underwriters.

Similar Occupations

Compare the job duties, education, job growth, and pay of insurance underwriters with similar occupations.

More Information, Including Links to O*NET

Learn more about insurance underwriters by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Insurance Underwriters Do About this section

Insurance underwriters
Most insurance underwriters specialize in one of three broad fields: health, life, and property and casualty.

Insurance underwriters evaluate insurance applications and decide whether to approve them. For approved applications, underwriters determine coverage amounts and premiums.

Duties

Insurance underwriters typically do the following:

  • Analyze information stated on insurance applications
  • Determine the risk involved in insuring a client
  • Screen applicants based on set criteria
  • Use automated software to determine the risk of insuring applicants
  • Review recommendations from underwriting software
  • Contact field representatives, medical personnel, and others to obtain additional information
  • Decide whether to offer insurance
  • Determine appropriate premiums and amounts of coverage

Underwriters are the main link between an insurance company and an insurance sales agent. Insurance underwriters use computer software to analyze risk for determining whether to approve an applicant. They take specific information about an applicant and enter it into a program. The program then provides recommendations on coverage and premiums. Underwriters evaluate these recommendations and decide whether to approve or reject the application. If a decision is difficult, they may consult additional sources, such as medical documents and credit scores.

For simple and common types of insurance, such as automobile insurance, underwriters typically rely on automated recommendations. For specific and complex insurance types, such as workers’ compensation, underwriters need to rely more on analytical insight.

Underwriters analyze the risk factors appearing on an application. For example, if an applicant reports a previous bankruptcy, the underwriter must determine whether that information is relevant to the policy being applied for. If relevant, the underwriter would then consider how far in the past the bankruptcy occurred and how the applicant’s financial situation has changed since the bankruptcy filing.

Insurance underwriters must achieve a balance between risky and cautious decisions. If underwriters allow too much risk, the insurance company will pay out too many claims. But if they don’t approve enough applications, the company will not make enough money from premiums.

Most insurance underwriters specialize in one of three broad fields: health, life, and property and casualty. Although the job duties in each field are similar, the criteria that underwriters use vary. For example, for someone seeking life insurance, underwriters consider the person’s age and financial history. For someone applying for car insurance (a form of property and casualty insurance), underwriters consider the person’s driving record.

Within the broad field of property and casualty, underwriters may specialize in commercial (business) insurance or personal insurance. They also may specialize by the type of policy, such as for insuring automobiles, homes, or pets.

Work Environment About this section

Insurance underwriters
Most underwriters work full time.

Insurance underwriters held about 125,500 jobs in 2022. The largest employers of insurance underwriters were as follows:

Direct insurance (except life, health, and medical) carriers 46%
Insurance agencies and brokerages 26
Other insurance related activities 5
Direct health and medical insurance carriers 4
Credit intermediation and related activities 3

Underwriters work in an office setting during regular business hours. They spend much of their time alone at a computer, most often working on applications but sometimes handling customer inquiries.

Some property and casualty underwriters travel to assess properties in person.

Work Schedules

Most underwriters work full time.

How to Become an Insurance Underwriter About this section

Insurance underwriters
Most firms prefer to hire applicants with a bachelor’s degree.

Insurance underwriters typically need a bachelor’s degree to enter the occupation. However, candidates who have an associate's degree or a high school diploma and insurance-related work experience sometimes qualify for positions. Certification may be beneficial.

Education

Employers usually prefer to hire candidates who have a bachelor’s degree. A common field of degree is business. Coursework in finance, economics, and mathematics is helpful.

Some colleges and universities partner with local businesses to offer internships. These opportunities allow students to gain knowledge or practical experience through assisting in a variety of tasks, such as underwriting.

Training

Beginning underwriters typically work under the supervision of senior underwriters for up to 12 months. Trainees work on basic applications and learn the most common risk factors. Some companies offer training programs that include classroom instruction on the basics of underwriting.

As new underwriters gain experience, they may work independently and handle more complex applications.

Licenses, Certifications, and Registrations

Employers may expect underwriters to become certified through coursework. These courses are important for keeping current with new insurance policies and changes in state and federal regulations.

Many options are available for certification or insurance specialty designations. Examples include the Life Underwriter Training Council Fellow (LUTCF) designation, the Chartered Property and Casualty Underwriter (CPCU) designation, and the Chartered Life Underwriter (CLU) certification.

Requirements for certification or designation vary and often include coursework or exams or both. Some credentials are available to new underwriters, but others require candidates to have a specified number of years of experience.

Advancement

Experienced underwriters may advance to become senior underwriters or underwriter managers. Underwriters may need certification to progress into these positions.

Important Qualities

Analytical skills. Underwriters must evaluate information from a variety of sources to balance risk against caution.

Decision-making skills. Underwriters determine whether to approve applicants for insurance coverage and, if approved, at what level to set premiums.

Detail oriented. Underwriters must stay focused when reviewing insurance applications because each item may affect the coverage decision.

Interpersonal skills. Underwriters need to communicate and relate well with people because much of their work involves dealing with clients or others, such as insurance sales agents.

Math skills. Underwriters need math knowledge to ensure accuracy in determining the probability of losses and calculating appropriate premiums on an insurance policy.

Pay About this section

Insurance Underwriters

Median annual wages, May 2022

Financial specialists

$78,180

Insurance underwriters

$76,230

Total, all occupations

$46,310

 

The median annual wage for insurance underwriters was $76,230 in May 2022. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $47,340, and the highest 10 percent earned more than $130,210.

In May 2022, the median annual wages for insurance underwriters in the top industries in which they worked were as follows:

Credit intermediation and related activities $83,000
Direct insurance (except life, health, and medical) carriers 76,860
Other insurance related activities 74,780
Insurance agencies and brokerages 74,310
Direct health and medical insurance carriers 74,000

Most underwriters work full time.

Job Outlook About this section

Insurance Underwriters

Percent change in employment, projected 2022-32

Financial specialists

5%

Total, all occupations

3%

Insurance underwriters

-2%

 

Employment of insurance underwriters is projected to decline 2 percent from 2022 to 2032.

Despite declining employment, about 8,200 openings for insurance underwriters are projected each year, on average, over the decade. All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.

Employment

Automated underwriting software allows workers to process applications quickly, reducing the need for underwriters. As this technology continues to improve and become more widely adopted in the insurance industry, more underwriting decisions are expected to be made automatically.

However, there still will be a need for underwriters to review and update the criteria that run the automation. In addition, their analytical insight will be needed in specific fields, such as workers’ compensation, marine insurance, and health insurance.

Employment projections data for insurance underwriters, 2022-32
Occupational Title SOC Code Employment, 2022 Projected Employment, 2032 Change, 2022-32 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Insurance underwriters

13-2053 125,500 122,400 -2 -3,000 Get data

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.org. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations About this section

This table shows a list of occupations with job duties that are similar to those of insurance underwriters.

Occupation Job Duties ENTRY-LEVEL EDUCATION Help on Entry-Level Education 2022 MEDIAN PAY Help on Median Pay
Actuaries Actuaries

Actuaries use mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty.

Bachelor's degree $113,990
Budget analysts Budget Analysts

Budget analysts help public and private organizations plan their finances.

Bachelor's degree $82,260
Claims adjusters, appraisers, examiners, and investigators Claims Adjusters, Appraisers, Examiners, and Investigators

Claims adjusters, appraisers, examiners, and investigators evaluate insurance claims.

See How to Become One $72,040
Cost estimators Cost Estimators

Cost estimators collect and analyze data in order to assess the time, money, materials, and labor required to make a product or provide a service.

Bachelor's degree $71,200
Insurance sales agents Insurance Sales Agents

Insurance sales agents contact potential customers and sell one or more types of insurance.

High school diploma or equivalent $57,860
Loan officers Loan Officers

Loan officers evaluate, authorize, or recommend approval of loan applications.

Bachelor's degree $65,740
Suggested citation:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Insurance Underwriters,
at https://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htm (visited February 22, 2024).

Last Modified Date: Wednesday, September 6, 2023

What They Do

The What They Do tab describes the typical duties and responsibilities of workers in the occupation, including what tools and equipment they use and how closely they are supervised. This tab also covers different types of occupational specialties.

Work Environment

The Work Environment tab includes the number of jobs held in the occupation and describes the workplace, the level of physical activity expected, and typical hours worked. It may also discuss the major industries that employed the occupation. This tab may also describe opportunities for part-time work, the amount and type of travel required, any safety equipment that is used, and the risk of injury that workers may face.

How to Become One

The How to Become One tab describes how to prepare for a job in the occupation. This tab can include information on education, training, work experience, licensing and certification, and important qualities that are required or helpful for entering or working in the occupation.

Pay

The Pay tab describes typical earnings and how workers in the occupation are compensated—annual salaries, hourly wages, commissions, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geographic area. For most profiles, this tab has a table with wages in the major industries employing the occupation. It does not include pay for self-employed workers, agriculture workers, or workers in private households because these data are not collected by the Occupational Employment and Wage Statistics (OEWS) survey, the source of BLS wage data in the OOH.

State & Area Data

The State and Area Data tab provides links to state and area occupational data from the Occupational Employment and Wage Statistics (OEWS) program, state projections data from Projections Central, and occupational information from the Department of Labor's CareerOneStop.

Job Outlook

The Job Outlook tab describes the factors that affect employment growth or decline in the occupation, and in some instances, describes the relationship between the number of job seekers and the number of job openings.

Similar Occupations

The Similar Occupations tab describes occupations that share similar duties, skills, interests, education, or training with the occupation covered in the profile.

Contacts for More Information

The More Information tab provides the Internet addresses of associations, government agencies, unions, and other organizations that can provide additional information on the occupation. This tab also includes links to relevant occupational information from the Occupational Information Network (O*NET).

2022 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2022, the median annual wage for all workers was $46,310.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

Work experience in a related occupation

Work experience that is commonly considered necessary by employers, or is a commonly accepted substitute for more formal types of training or education.

Number of Jobs, 2022

The employment, or size, of this occupation in 2022, which is the base year of the 2022-32 employment projections.

Job Outlook, 2022-32

The projected percent change in employment from 2022 to 2032. The average growth rate for all occupations is 3 percent.

Employment Change, 2022-32

The projected numeric change in employment from 2022 to 2032.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Employment Change, projected 2022-32

The projected numeric change in employment from 2022 to 2032.

Growth Rate (Projected)

The percent change of employment for each occupation from 2022 to 2032.

Projected Number of New Jobs

The projected numeric change in employment from 2022 to 2032.

Projected Growth Rate

The projected percent change in employment from 2022 to 2032.

2022 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2022, the median annual wage for all workers was $46,310.