Becoming An Aviation Insurance Underwriter: What You Need To Know

Becoming an aviation insurance underwriter requires a specific set of skills and qualifications. These professionals are responsible for reviewing insurance applications, assessing risks, and determining the terms of coverage for aircraft, airports, and related operations. While the specific requirements can vary, a degree in a business, insurance, or related field is often preferred, along with strong analytical, problem-solving, and interpersonal skills. On-the-job training and certifications can also enhance one's qualifications and career prospects.

Develop strong mathematical skills

To become an aviation insurance underwriter, you will need to develop strong mathematical skills. While the role does not require advanced mathematics, a solid foundation of basic math is essential. Here are some ways to develop and strengthen your mathematical abilities:

• Focus on Fundamental Math: Aviation insurance underwriting involves basic arithmetic, so ensure you have a strong grasp of addition, subtraction, multiplication, and division. Practice mental math and familiarise yourself with calculations, as this will be useful in your day-to-day work.
• Statistics and Data Analysis: Develop your skills in statistics, as this will be crucial for understanding risk assessment and interpreting data. Learn about descriptive and inferential statistics, as well as the use of statistical software or spreadsheets. Being proficient in data analysis will enable you to make informed decisions about insurance applications.
• Advanced Math Courses: If you're still in high school or college, consider taking advanced math courses. Calculus, for example, can strengthen your understanding of rates of change and optimization, which can be indirectly applicable to assessing risks and premiums.
• Math Clubs and Competitions: Join math clubs, such as mathletes, to engage in collaborative problem-solving and critical thinking. Participating in math competitions can also help sharpen your skills and expose you to new mathematical challenges.
• Software and Spreadsheets: Familiarise yourself with spreadsheet applications like Microsoft Excel. Being proficient in using spreadsheets will be immensely beneficial in your role as an underwriter, as you'll be working with data and calculations regularly.
• Practice with Real-World Scenarios: Apply your math skills to real-world situations. For instance, calculate the potential costs and benefits of insuring a client, or practice assessing risk ratios. This will help you develop a practical understanding of how math is applied in aviation insurance underwriting.

Remember, while mathematical skills are important, they are just one aspect of becoming an aviation insurance underwriter. Analytical skills, problem-solving abilities, and business acumen are also crucial for success in this field.

Earn a bachelor's degree in a related field

Earning a bachelor's degree in a field related to aviation insurance underwriting is a crucial step towards becoming an aviation insurance underwriter. While there is no one-size-fits-all degree for this career path, certain degrees can provide a solid foundation of knowledge and skills that are valuable in the field.

A degree in business, insurance, or a related field can be a good choice for aspiring aviation insurance underwriters. These degrees offer valuable insights into insurance products, concepts, and processes, which are essential for understanding the aviation insurance industry. Additionally, degrees in finance, economics, or mathematics can also be beneficial. They equip graduates with strong mathematical and analytical skills, enabling them to assess risks, calculate premiums, and make informed decisions about insurance applications.

When pursuing a bachelor's degree, it is advantageous to select elective courses strategically. Opting for courses that enhance computer literacy skills or provide a deeper understanding of data analytics can be immensely helpful in the aviation insurance field. These skills are not only valuable during the application and claims assessment processes but also facilitate the effective use of industry-standard software and tools.

Furthermore, a bachelor's degree provides a foundation for developing critical soft skills that are essential for success in the aviation insurance industry. These include interpersonal skills, analytical reasoning, problem-solving abilities, ethical judgement, and a collaborative mindset. Cultivating these skills alongside the technical knowledge gained from a degree will enhance your effectiveness as an aviation insurance underwriter.

It is worth noting that while a bachelor's degree is a fundamental requirement, on-the-job training is also crucial. Many employers offer training programs that provide new hires with the opportunity to learn from senior underwriters or analysts, enabling them to apply their academic knowledge in a practical, real-world setting.

Gain work experience

While a graduate degree is not necessary to become an aviation insurance underwriter, gaining work experience is crucial. Entry-level positions typically require a bachelor's degree and some on-the-job training. During your training period, you'll be paired with a senior underwriter or analyst who will guide and supervise your work. This is your opportunity to learn the basics of the job and develop essential skills.

You can start building your work experience even before graduating from high school by taking advantage of job shadowing and internship opportunities in the insurance field. These experiences will not only help you decide if this is the right career path for you but also provide you with valuable insights and connections.

After graduating with a bachelor's degree, you can immediately start applying for entry-level positions as an aviation insurance underwriter. Most companies offer on-the-job training programs that last a few months, during which you'll learn about the company's processes and gain hands-on experience in processing applications.

Once you've gained a couple of years of work experience, you can enhance your qualifications and improve your career prospects by earning a professional certification. Certifications may be required for more senior-level positions and can demonstrate your expertise and commitment to the field.

Remember, gaining work experience is an ongoing process, and it's important to stay receptive to feedback and continue learning and developing your skills throughout your career.

Pursue an advanced certification

While a certification is not necessary to become an aviation insurance underwriter, earning one can be beneficial. It can demonstrate to employers that you understand the basic techniques, principles, and software tools of underwriting. Certifications can also help you specialise in a particular type of underwriting, such as aviation insurance, and teach you industry-specific knowledge.

There are several certifications that aspiring insurance underwriters can pursue. These include:

• Chartered Property Casualty Underwriter (CPCU): This certification is offered by The Institutes, a risk and insurance professional organisation. The CPCU designation requires completing a series of online courses and virtual exams. It focuses on the fundamentals of risk management and property-casualty insurance.
• Associate in Commercial Underwriting (AU): Also offered by The Institutes, this certification lasts around a year and covers topics such as financial statements, risk analysis, and determining premiums.
• Registered Professional Liability Underwriter: Offered by the Professional Liability Underwriting Society, this certification is designed for careers working with professional liability. It takes one to two years to complete and requires at least two years of professional experience to apply.
• Certified Underwriter: This 12-hour, fully online course is offered by Vskills, a commercial certification company. It provides a broad certification covering general insurance practices.
• Chartered Life Underwriter: This certification is for those specialising in the life insurance field. It consists of eight self-paced courses offered in digital or printed textbook form.

In addition to these certifications, there are also qualifications specific to the London Market, such as the Certificate in London Market Insurance offered by the Chartered Insurance Institute (CII). This qualification provides an understanding of the London Market's underwriting disciplines and the core elements of the insurance cycle.

Develop soft skills like analytical reasoning and problem-solving abilities

To become an aviation insurance underwriter, you'll need to develop soft skills like analytical reasoning and problem-solving abilities. These skills will enable you to assess information, evaluate risks, and make informed decisions about insurance applications. Here are some ways to develop these essential capabilities:

Enhance Analytical Reasoning:

• Data Analysis: Strengthen your ability to analyze data and use it to make informed decisions. Familiarize yourself with data analytics tools and programming languages such as SQL, Python, and R.
• Logical Thinking: Practice identifying patterns, trends, and outliers in data. Develop inductive and deductive reasoning skills to make informed conclusions.
• Research: Improve your research skills to gather relevant information and facts. Know where to find data and who to ask for help in obtaining necessary information.
• Creativity: Think creatively to approach problems from different angles. Brainstorming and thinking big-picture can lead to unique solutions.

Improve Problem-Solving Abilities:

• Critical Thinking: Question preconceived notions and identify areas for improvement. This skill helps in innovation and adapting to changing circumstances.
• Forecasting: Develop the ability to make accurate predictions and forecasts. Anticipate potential outcomes and their implications.
• Troubleshooting: Learn to identify the root causes of problems, even with limited information. This skill is valuable in customer service and technical fields.
• Decision-Making: Enhance your decision-making skills by considering all relevant information and potential outcomes. Weigh the risks and benefits of each choice.
• Problem Sensitivity: Cultivate the ability to recognize issues early on and predict potential problems. This skill helps in adjusting plans and avoiding major issues.

By developing these soft skills, you'll be well-equipped to handle the analytical and problem-solving aspects of being an aviation insurance underwriter.

Frequently asked questions