Insurance Underwriters: Job Description
Review individual applications for insurance to evaluate degree of risk involved and determine acceptance of applications.
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What Tasks Do Insurance Underwriters Perform?
The core tasks performed by insurance underwriters span:
- Examine documents to determine degree of risk from factors such as applicant health, financial standing and value, and condition of property.
- Decline excessive risks.
- Write to field representatives, medical personnel, or others to obtain further information, quote rates, or explain company underwriting policies.
- Evaluate possibility of losses due to catastrophe or excessive insurance.
- Review company records to determine amount of insurance in force on single risk or group of closely related risks.
- Decrease value of policy when risk is substandard and specify applicable endorsements or apply rating to ensure safe, profitable distribution of risks, using reference materials.
- Authorize reinsurance of policy when risk is high.
Key Skills and Knowledge
Top insurance underwriters rely on a mix of skills and domain knowledge.
Most Important Skills
The competencies most central to this role, rated on an importance scale of 0 to 5:
Knowledge Areas
Other Insurance Underwriters Job Titles
People in this occupation may also be known by titles such as:
- Account Manager Underwriter
- Account Underwriter
- Automobile and Property Underwriter
- Bond Underwriter
- Casualty Underwriter
- Commercial Credit Underwriter
- Commercial Insurance Underwriter
- Commercial Lines Underwriter
Employment and Demand
There are roughly 57,540 insurance underwriters working in the United States today. This occupation is expected to decline by -3.6% over the projection horizon.
How Much Do Insurance Underwriters Make?
| Statistic | Value |
|---|---|
| Annual median | $129,939 |
| Hourly median | $62.47 |
| 10th percentile | $75,301 |
| 25th percentile | $102,620 |
| 75th percentile | $157,257 |
| 90th percentile | $184,576 |
Wages vary widely based on experience, location, and industry.
Insurance Underwriters Salary by State
| State | Annual median salary |
|---|---|
| Vermont | $106,790 |
| District of Columbia | $100,660 |
| Massachusetts | $100,050 |
| Colorado | $100,050 |
| Maine | $96,600 |
| New Hampshire | $96,100 |
| Connecticut | $95,460 |
| Washington | $95,310 |
| New Jersey | $93,500 |
| Maryland | $88,820 |
| Nevada | $87,290 |
| California | $87,200 |
| Illinois | $84,580 |
| New York | $83,970 |
| South Dakota | $83,370 |
| Kansas | $81,920 |
| Kentucky | $81,760 |
| South Carolina | $81,080 |
| Rhode Island | $80,960 |
| Florida | $80,000 |
| Ohio | $79,820 |
| Oregon | $79,290 |
| Idaho | $79,250 |
| Tennessee | $79,190 |
| Minnesota | $78,950 |
| Pennsylvania | $78,220 |
| Missouri | $78,100 |
| Georgia | $78,000 |
| Wisconsin | $77,940 |
| Iowa | $77,660 |
| Virginia | $77,110 |
| Michigan | $77,060 |
| Hawaii | $76,810 |
| Texas | $76,760 |
| Nebraska | $75,280 |
| Arizona | $73,740 |
| North Carolina | $72,180 |
| Indiana | $71,490 |
| Oklahoma | $68,290 |
| North Dakota | $67,690 |
| Delaware | $66,960 |
| Alabama | $63,760 |
| Arkansas | $63,690 |
| Louisiana | $63,480 |
| Utah | $63,410 |
| New Mexico | $62,390 |
| Alaska | $60,860 |
| Montana | $60,350 |
| Mississippi | $58,760 |
| West Virginia | $56,740 |
| Guam | $42,360 |
| Puerto Rico | $39,210 |
Top-Paying U.S. Regions
Earnings for insurance underwriters differ across the country. These regions lead on median pay:
| Region | Median annual wage | Share of U.S. jobs | Location quotient |
|---|---|---|---|
| New England | $97,424 | 7.0% | 1.62 |
| Rocky Mountains | $88,038 | 2.3% | 0.64 |
| Far Western US | $87,746 | 9.9% | 0.61 |
| Middle Atlantic | $84,151 | 16.4% | 1.17 |
| Great Lakes | $80,435 | 20.0% | 1.58 |
| Plains States | $78,315 | 8.6% | 1.32 |
| Southeast | $76,116 | 23.4% | 1.14 |
| Southwest | $75,167 | 11.6% | 1.00 |
Top Metro Areas
| Metro area | State | Median annual wage | Employment |
|---|---|---|---|
| Denver-Aurora-Centennial, CO | CO | $106,380 | 1,060 |
| Boston-Cambridge-Newton, MA-NH | MA | $103,270 | 2,400 |
| Chicago-Naperville-Elgin, IL-IN | IL | $98,860 | 4,620 |
| Seattle-Tacoma-Bellevue, WA | WA | $98,500 | 1,330 |
| Hartford-West Hartford-East Hartford, CT | CT | $98,400 | 1,820 |
| Las Vegas-Henderson-North Las Vegas, NV | NV | $98,280 | 390 |
| Lexington-Fayette, KY | KY | $98,160 | 150 |
| Appleton, WI | WI | $96,890 | 80 |
Top Industries Employing Insurance Underwriters
Most insurance underwriters are concentrated in the following sectors:
| Industry | Employment | Median annual wage |
|---|---|---|
| Finance and Insurance | 101,320 | $79,960 |
| Management of Companies and Enterprises | 3,410 | $78,490 |
| Professional, Scientific, and Technical Services | 1,080 | $78,970 |
| Administrative and Support and Waste Management and Remediation Services | 870 | $75,000 |
| Real Estate and Rental and Leasing | 240 | $82,980 |
| Health Care and Social Assistance | 140 | $99,940 |
| Other Services (except Public Administration) | 90 | $78,870 |
Below are examples of industries where insurance underwriters work:
Software Insurance Underwriters Use
- Object or component oriented development software: C++ (hot technology)
- Data base user interface and query software: Microsoft Access (hot technology)
- Spreadsheet software: Microsoft Excel (hot technology)
- Office suite software: Microsoft Office software (hot technology)
- Electronic mail software: Microsoft Outlook (hot technology)
- Presentation software: Microsoft PowerPoint (hot technology)
- Operating system software: Microsoft Windows (hot technology)
- Word processing software: Microsoft Word (hot technology)
What the Workplace Is Like
The on-the-job environment of insurance underwriters is shaped by the following characteristics:
- Spend Time Sitting
- Telephone Conversations
- Time Pressure
- Indoors, Environmentally Controlled
Education and Training
Most insurance underwriters positions require a bachelor’s degree as the typical entry-level education. This career aligns with Considerable Preparation Needed (Job Zone 4), indicating the level of preparation typically expected.
Related Careers
Similar Occupations
- Financial Managers (Supplemental)
- Investment Fund Managers (Supplemental)
- Claims Adjusters, Examiners, and Investigators (Primary-Short)
- Accountants and Auditors (Supplemental)
- Appraisers and Assessors of Real Estate (Supplemental)
- Credit Analysts (Primary-Short)
- Financial and Investment Analysts (Primary-Long)
- Personal Financial Advisors (Primary-Long)
Where to Study
Aspiring insurance underwriters typically earn programs in:
Business, Management, Marketing, and Related Support Services
4 programs across 4 majors
- Insurance
- Management Sciences & Methods
- Business Administration & Management
- Finance & Financial Management
Sources
Statistics shown above are sourced from the following authoritative sources:
- U.S. Bureau of Labor Statistics — Occupational Employment and Wage Statistics (OEWS) for employment and wage data by state and industry.
- BLS Employment Projections for total employment and growth forecasts.
- O*NET (Occupational Information Network) for skills, knowledge, tasks, work activities, work context, technology, and education-zone data.
SOC code: 13-2053.00 (Insurance Underwriters).
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