Information Provided by the Bureau of Labor Statistics Occupational Outlook Handbook
Most large insurance companies prefer college graduates who have a degree in business administration or finance with courses in accounting; however, a bachelors degree in any fieldplus courses in business law and accountingmay be sufficient to qualify. Continuing education is necessary for advancement. Employment is expected to grow more slowly than average as the continuing spread of underwriting software increases worker productivity. Job opportunities should be best for those with a background in finance and strong computer and communication skills.
On average, Insurance Underwriters earn $ 52,350 per year.
Job Opportunities for Insurance Underwriters are expected to:
Increase slower than average.
Insurance companies protect individuals and organizations from financial loss by assuming billions of dollars in risk each yearrisks of car accident, property damage, illness, and other occurrences. Underwriters decide if insurance is provided and under what terms. They are needed to identify and calculate the risk of loss from policyholders, establish who receives a policy, determine the appropriate premium, and write policies that cover this risk. An insurance company may lose business to competitors if the underwriter appraises risks too conservatively, or it may have to pay excessive claims if the underwriting actions are too liberal.
For entry-level underwriting jobs, most large insurance companies prefer college graduates who have a degree in business administration or finance with courses or experience in accounting. However, a bachelors degree in almost any fieldplus courses in business law and accountingprovides a good general background and may be sufficient to qualify an individual. Because computers are an integral part of most underwriters jobs, some coursework with computers is also beneficial.
Insurance underwriters held about 104,000 jobs in 2006. Insurance carriers employed 65 percent of all underwriters. Most of the remaining underwriters work in insurance agencies or for organizations that offer insurance services to insurance companies and policyholders. A small number of underwriters work in agencies owned and operated by banks, mortgage companies, and real estate firms.
