Becoming A Florida Insurance Underwriter: Steps To Success

Becoming an insurance underwriter in Florida involves several steps, including earning a bachelor's degree, gaining professional experience, and obtaining relevant certifications. A career as an insurance underwriter can be lucrative, with a national average salary of $122,424 per year, and it involves evaluating the risks of insuring people, property, and assets.

The first step is to obtain a bachelor's degree in a field such as business, economics, mathematics, statistics, finance, or accounting. During your degree program, you may also benefit from taking courses in data analysis or computer literacy to prepare for the data-heavy nature of the role.

The next step is to gain professional experience, either through entry-level positions within insurance organizations or by being hired directly as an underwriter by companies that value relevant work experience and computer proficiency over a degree.

While not always required for entry-level positions, earning certifications in your desired specialty, such as the Chartered Property and Casualty Underwriter (CPCU) designation, can enhance your resume and open up more advanced insurance underwriting roles.

Finally, with the necessary education and experience, you can start searching for insurance underwriter roles in Florida and applying with a tailored resume and cover letter.

Earn a bachelor's degree

Earning a bachelor's degree is the first step toward becoming an insurance underwriter. Although there is no formal underwriting degree programme, a bachelor's degree in business, economics, mathematics, statistics, finance, or accounting is usually required for those pursuing a career in underwriting. These degrees provide a strong foundation in mathematics and analytical reasoning, as well as an understanding of business procedures and practices.

For instance, an accounting degree will cover topics such as accounting principles, the accounting cycle, managerial accounting data in business decision-making, and business statistics. On the other hand, a finance degree will delve into the fundamentals of business finance, including asset valuation, capital budgeting, and the financial markets. It will also cover investment vehicles, portfolio management, and the international monetary environment.

Additionally, it is beneficial to take elective courses that support your professional ambitions. For instance, courses in computer literacy and data analytics can be extremely useful in preparing you for the data-heavy nature of the insurance underwriter role, where you will be working with analytics technology and programming.

While a bachelor's degree is the minimum requirement, some insurance underwriter roles may require a graduate degree, such as a Master of Business Administration (MBA). An advanced degree can enhance your career prospects, especially if you aspire to senior-level positions, and provide opportunities to expand your professional network.

Obtain an entry-level position

To obtain an entry-level position as a Florida underwriter in insurance, you can follow these steps:

Firstly, it is important to note that a bachelor's degree is typically required to become an insurance underwriter. While there is no specific degree for underwriting, degrees in fields such as business, economics, mathematics, statistics, finance, or accounting are beneficial. These degrees provide a strong foundation in the skills required for underwriting, including mathematics, analytical thinking, and decision-making.

Once you have obtained your bachelor's degree in a related field, you can start applying for entry-level positions. You can find underwriter jobs in various settings, including brokerage firms, insurance companies, corporations, and credit intermediation. Researching potential employers, their company values, and career advancement opportunities can help you determine which work environment best suits your goals.

In addition to your degree, gaining some professional experience in the insurance industry can increase your chances of securing an entry-level position. You can look for roles such as insurance policy processing clerks or procurement clerks, which can provide you with valuable skills and knowledge of the industry.

While entry-level positions may not require specific certifications, earning relevant certifications can enhance your resume and demonstrate your commitment to the field. The Chartered Property and Casualty Underwriter (CPCU) designation, for example, indicates expertise in risk management and casualty and property insurance.

With your degree, relevant certifications, and any additional work experience, you can start applying for entry-level underwriting positions. A well-prepared resume and cover letter highlighting your qualifications, skills, and career objectives can increase your chances of securing an interview.

Lastly, it is worth noting that networking can also play a vital role in obtaining an entry-level position. Reaching out to your professional network and connections in the industry can help you learn about potential job openings and make informed decisions about your career path.

Complete on-site training

Once you obtain an underwriter position, you will likely undergo extensive on-site training as part of your onboarding process. This training period is directed toward helping you apply your academic knowledge to the insurance industry. With the guidance of a senior underwriter, you can acclimate to more responsibilities until you are trusted to complete your job requirements unsupervised.

During your training period, you’ll become familiar with the software your organization uses, and you’ll work on processing applications. You’ll likely be given simple tasks initially, and then more complex tasks as you gain experience. This is also the time to ask questions and seek additional guidance from your workplace mentor. Remember that your mentor's goal is to help you learn how to do your job well.

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’s critical to remain receptive to feedback from your workplace mentor.

Underwriters need a range of skills to perform their work, including advanced computer knowledge, the ability to think analytically, communication and decision-making skills, and attention to detail.

Analytical skills are important because underwriters must analyse credit applications and the risks associated with IPOs, securities trading, debt issues, and equity markets. This requires some basic knowledge of financial markets, the ability to make decisions, and balancing out risks and rewards.

Communication skills are also vital because underwriters need to be able to communicate the results of their analysis to others in the field, including clients, colleagues, insurance agents, and other financial professionals.

Computer skills are an integral part of an underwriter's job. This can be specific software that is tailored to your employer or sector, or generic programs like Excel. It's important to have basic computer skills and be able to learn how to navigate the industry's main programs quickly.

Math skills are also important. While computers can make calculations quickly, you should still be able to verify all the information on your own.

Earn certifications

Certifications are a crucial step in advancing your career as an insurance underwriter. They not only demonstrate your expertise and dedication to the field but also keep you up-to-date with the latest industry developments. While some entry-level positions may not require certifications, earning them will make you more competitive and qualify you for advanced roles.

There are several insurance underwriter certifications available, offered by different organisations, and you can choose the ones that align with your specialisation and career goals. Here are some of the common certifications and the organisations that offer them:

• Chartered Property and Casualty Underwriter (CPCU): Offered by The Institutes, this certification is designed for candidates with at least two years of insurance underwriting experience. It involves completing four core courses, three concentration courses, one elective, and an ethics course, followed by an exam.
• Life Underwriter Training Council Fellow (LUTCF): This certification is offered by The National Association of Insurance and Financial Advisors. It covers the basics of practice management, life insurance, investment products, and risk management in a three-course curriculum. Passing an exam after completing the modules is required for certification.
• Associate in Commercial Underwriting (ACU): This certification is intended for commercial insurance underwriters who deal with risks arising from losses related to illness, accidents, injuries, and damage.
• Associate in Personal Insurance (API): This designation is designed for insurance professionals focusing on personal lines insurance, which covers individuals against personal injury, death, or property loss.
• Chartered Life Underwriter (CLU): Offered by The American College of Financial Systems, this program is for candidates with three years of life insurance-related work experience. It includes five core courses and three electives covering life insurance planning, law, and estate planning. Passing the exam is required for certification.
• Associate in Insurance Services (AIS), Associate in Insurance Data Analytics (AIDA), Associate in Claims (AIC), and Associate in Risk Management (ARM): These certifications are offered by The Institutes for underwriters at various levels of expertise.

Additionally, if you have specific designations, such as a CLU® or CPCU®, you may be exempt from prelicensing education requirements in Florida.

Remember that earning certifications can enhance your career prospects, making you eligible for senior positions and potentially increasing your earning potential.

Apply for advanced positions

Once you have earned the desired certifications, you can start applying for advanced positions within your company or look for external opportunities. There are many specialisations within the underwriting profession, such as mortgage, life, auto and health insurance sectors, with associate underwriter, underwriter manager and senior underwriter positions available in each of these specialties.

The diverse nature of the insurance industry can provide ample growth opportunities to elevate your career. You can find underwriter jobs in multiple settings, including brokerage firms, insurance companies, corporations and credit intermediation. Research your potential employers, their company values and pathways to career advancement to determine which work environment offers the best opportunities.

You can also contact members of your professional network to see if they know of any available roles. Once you have found some positions that match your requirements, you can begin applying. Consider sending a professional resume and cover letter that details your educational background, professional experiences, skills, certifications and career objectives. After submitting your application, a hiring manager may contact you to schedule an interview. During your interview, you can discuss your qualifications and showcase your personality and passion for the industry.

Frequently asked questions