Life Insurance Underwriter: Your Career Guide

A life insurance underwriter is a financial professional who evaluates and determines the risks of providing insurance to individuals. They assess an applicant's age, health, and medical history to decide on the premiums and types of policies offered. To become a life insurance underwriter, you'll need a bachelor's degree in a relevant field, strong analytical skills, and knowledge of maths and computers.

Get a bachelor's degree in a relevant field

To become a life insurance underwriter, you'll need a bachelor's degree in a relevant field. While there isn't a specific degree for underwriting, employers often require candidates to have a background in a related subject. Common degree fields for aspiring insurance underwriters include business, finance, accounting, economics, or mathematics.

When selecting your degree, consider that the role of an insurance underwriter is data-heavy and involves using analytics technology and software. Therefore, it's beneficial to take courses in data analysis and computer literacy alongside your main program. For example, you could take electives that improve your computer literacy skills or understanding of data analytics.

Underwriting also requires strong analytical, computer, communication, and math skills. Courses in these areas will help you develop the competencies needed to succeed as an insurance underwriter.

Additionally, some insurance underwriter roles may require or prefer candidates with a relevant graduate degree, such as a Master of Business Administration (MBA). An advanced degree can be advantageous if you aspire to supervisory or higher-level positions within the field.

Gain professional experience

While some organisations may hire recent graduates for life insurance underwriter roles, many professionals start their careers by selecting entry-level positions within insurance organisations. From there, they can seek promotions as they learn the required industry skills, rules, and policies. Some examples of entry-level positions you can pursue include roles as insurance policy processing clerks or procurement clerks. These roles can help you bolster your resume and develop competencies that can help you succeed as a life insurance underwriter.

Entry-level insurance underwriters work as trainees or assistants while learning how to assess an insurance application, define risk, determine eligibility, calculate policy premiums, and accept or deny each request for coverage. At the start of your career, your responsibilities will focus on data collection and basic application processing. As you gain experience, you will handle more complex applications and work more independently.

During your training period, you will become familiar with the software your organisation uses and work on processing applications. You will likely be given simple tasks initially and then move on to more complex tasks as you gain experience. Your training period is an opportunity to prove yourself as a trustworthy and hard-working employee and to learn the basic tools of your job. It is critical to remain receptive to feedback from your workplace mentor. Remember that your mentor's goal is to help you learn how to do your job well, so never hesitate to ask questions or request additional guidance on an assignment.

You can also gain experience by working as an insurance agent or broker.

Seek certification

To become a life insurance underwriter, you can seek certification to advance your career and qualify for more senior roles. While entry-level positions may not require certification, earning certain designations demonstrates your skills and dedication to the field. Here are some options for certifications to pursue:

Chartered Property and Casualty Underwriter (CPCU)

This certification is for professionals with at least two years of insurance underwriting experience. It is offered by The Institutes and includes a mix of core, concentration, elective, and ethics courses, followed by an exam. This option is geared towards professionals specialising in risk management, casualty and property insurance, insurance agents, claims representatives, and risk managers.

Associate in Commercial Underwriting (ACU)

This certification is intended for commercial insurance underwriters who review and analyse risks arising from losses related to illness, accidents, injuries, and damage. It can be obtained through certifying bodies such as the Insurance Institute of America.

Associate in Personal Insurance (API)

This designation is designed for insurance professionals, focusing on personal lines insurance. It covers protection for insured parties against personal injury, death, or loss of property.

Life Underwriter Training Council Fellow (LUTCF)

Offered by The National Association of Insurance and Financial Advisors, this certification includes a three-course curriculum covering practice management, life insurance, investment products, and risk management. It is followed by an exam.

Chartered Life Underwriter (CLU)

Offered by The American College of Financial Systems, this certification is for candidates with three years of life insurance-related work experience. It includes core and elective courses on life insurance planning and law, estate planning, and planning for business owners and professionals, followed by an exam.

In addition to these options, there are other certifying bodies such as the American Institute for Chartered Property Casualty Underwriters and the National Association of Insurance and Financial Advisors, which offer various training and certification programs.

Remember that certification can enhance your career prospects, keep you updated with industry changes, and showcase your expertise and commitment to the field of insurance underwriting.

Develop key skills

To become a life insurance underwriter, you will need to develop a range of key skills. Here are some essential skills to focus on:

Analytical Skills

Underwriters must possess strong analytical skills to evaluate credit and insurance applications, assess risks, and make informed decisions. This involves analyzing financial data, credit scores, medical history, and other relevant information to determine the eligibility and risk level of applicants.

Computer Skills

Computer proficiency is crucial for insurance underwriters. You should be comfortable using computer software, including specialized underwriting programs and generic applications like Excel. These tools assist in data analysis, risk calculation, and report generation. Basic computer skills and a willingness to learn industry-specific software are essential.

Math Skills

A solid foundation in mathematics is necessary for insurance underwriters. Underwriters use math to calculate premiums, assess financial risks, and make financial projections. A strong understanding of mathematics will enable you to verify information and calculations accurately.

Communication Skills

Effective communication skills are vital for insurance underwriters. You will need to convey complex information clearly to clients, colleagues, insurance agents, and other professionals. Strong communication ensures that all stakeholders understand the underwriting decisions, risk assessments, and policy details.

Attention to Detail

Underwriters must be detail-oriented, as they deal with intricate financial and personal information. Accuracy is crucial when reviewing applications, analyzing data, and setting policy terms. Paying close attention to detail helps underwriters identify potential risks, ensure compliance, and protect the interests of both the insurance company and the policyholders.

Problem-Solving and Decision-Making Skills

Underwriters often encounter complex situations that require strong problem-solving abilities. You should be able to identify issues, evaluate risks, and make sound decisions. This includes balancing risks and rewards, considering ethical implications, and determining the best course of action for the organization and its clients.

Apply for roles

Once you have the required qualifications, you can start applying for entry-level insurance underwriter roles. You can find these roles on job sites such as Monster and ZipRecruiter, as well as by contacting local insurance companies and members of your professional network.

When applying, send a professional resume and cover letter detailing your educational background, professional experience, skills, certifications, and career objectives. After submitting your application, you may be contacted by a hiring manager to schedule an interview. During the interview, discuss your qualifications and showcase your passion for the industry.

It's worth noting that some employers may prefer candidates with relevant work experience, such as working as an insurance agent or broker. Gaining this experience can help you develop a better understanding of the industry and make you a more competitive candidate when applying for insurance underwriter roles.

Additionally, while not always required, pursuing certifications relevant to the insurance industry can enhance your application and demonstrate your commitment to the field. Examples of certifications include the Chartered Property and Casualty Underwriter (CPCU) and the Life Underwriter Training Council Fellow (LUTCF).

Frequently asked questions