Insurance Underwriters

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.

Insurance underwriters held about 127,000 jobs in 2024. The largest employers of insurance underwriters were as follows:

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.

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

The median annual wage for insurance underwriters was $79,880 in May 2024.

Employment of insurance underwriters is projected to grow 3 percent from 2024 to 2034, decline.

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