Insurance Underwriter: Steps To Start In Wisconsin

If you're interested in becoming an insurance underwriter in Wisconsin, there are a few key steps you should follow. Firstly, it's important to pursue a relevant bachelor's degree, such as a degree in business, finance, or accounting. This will provide you with a strong foundation in financial and analytical skills, which are crucial for the role of an insurance underwriter. During your degree, you may also benefit from taking courses in data analysis and computer literacy.

Once you've obtained your degree, it's a good idea to gain some professional experience. Entry-level positions, such as insurance policy processing clerk or procurement clerk, can provide valuable experience and help you develop the skills needed for a career in insurance underwriting.

While it's not always necessary, earning relevant certifications can enhance your qualifications and improve your career prospects. Certifications such as the Chartered Property and Casualty Underwriter (CPCU) or the Associate in Commercial Underwriting (AU) can demonstrate your expertise and open doors to more senior roles.

Finally, you can start applying for insurance underwriter roles in Wisconsin. Keep an eye out for job postings from local insurance companies and don't hesitate to leverage your professional network. With the right combination of education, experience, and certifications, you'll be well on your way to becoming an insurance underwriter in Wisconsin.

Entry requirements: a bachelor's degree in a business-related field, and relevant work experience

To become an insurance underwriter in Wisconsin, you will need to obtain a bachelor's degree in a business-related field and gain relevant work experience. A degree in business, finance, or accounting is ideal, as it provides a solid foundation in core business concepts such as financial services, business administration, valuation, financial modelling, and allocation of financial resources. During your studies, it is beneficial to take courses in data analysis, computer literacy, finance, economics, and mathematics to develop the skills necessary for a career in insurance underwriting.

While a bachelor's degree is the typical entry requirement, gaining relevant work experience is also crucial. Entry-level positions, such as insurance policy processing clerk or procurement clerk, can provide valuable experience in the insurance industry and help develop the skills needed for underwriting. These roles allow you to learn about insurance applications, financial skills, and analytical and reasoning abilities essential for understanding the complexities of insurance underwriting.

In addition to your degree and work experience, certifications can further enhance your qualifications. Underwriters, especially those seeking management or senior-level positions, are often required to obtain professional certifications. These certifications demonstrate expertise in insurance underwriting and can lead to advanced roles. Examples of certifications include the Chartered Property and Casualty Underwriter (CPCU) designation, Associate in Commercial Underwriting (AU), and Associate in Insurance (AINS).

Certification: gain professional certifications to advance your career

While not all employers require their underwriters to be certified, earning a certification can open doors to more senior positions, such as senior underwriter or analyst roles. Certification can also help prove your expertise and increase your value as an employee, making you a more competitive candidate.

Various organizations administer certification programs, and your employer may express a preference for certain certifications. For example, The Institutes offer several underwriter certifications, including the Chartered Property Casualty Underwriter (CPCU), the Associate in Commercial Underwriting (AU), and the Associate in Insurance (AINS). The Institutes' certifications are aimed at professionals with different levels of experience and areas of expertise. For instance, the CPCU certification requires at least two years of work experience, while the AU and AINS certifications do not.

Other types of insurance certification options are available through the National Association of Insurance and Financial Advisors and the American College of Financial Services. They offer the Life Underwriter Training Council Fellow (LUTCF) designation and the Chartered Life Underwriter (CLU) certification, respectively.

If your employer requires certification, they may cover the associated fees and allow you to study during work hours. Even if they don't, you may be able to negotiate fee reimbursement with your HR department.

Remember, certifications are an addition to your existing education level. Most programs require you to have at least a bachelor's degree before starting.

Skills: develop analytical, computer, communication, and math skills

To become an insurance underwriter in Wisconsin, you'll need to develop a range of analytical, computer, communication, and math skills. Here are some detailed examples of each:

Analytical Skills

• Research: Being able to find data and information to make informed decisions and form opinions is a crucial skill for underwriters. They need to be able to verify the accuracy of statements and gather relevant data to create effective business strategies.
• Forecasting: Making accurate predictions about business decisions or trends is a valuable skill. For example, predicting changes in stock value or understanding the potential risks associated with insuring a client.
• Creativity: Creative thinking can help find unique solutions to complex problems. It also helps professionals identify patterns or issues quickly.
• Troubleshooting: This skill involves identifying and resolving technical or customer service issues with limited information. For example, troubleshooting may involve addressing a customer's technical problem without direct access to their computer.

Computer Skills

• Word processing: Word processing software is essential for creating and editing documents.
• Spreadsheet software: Proficiency in spreadsheet software is necessary for organizing and analyzing data.
• Presentation software: Creating presentations with slideshows, audio, text, photos, and videos is a valuable skill for communicating ideas and information effectively.
• Digital marketing: Understanding digital marketing tools and techniques, such as content management systems, search engine optimization, and social media marketing, is crucial for promoting a company's products or services.

Communication Skills

• Active listening: Paying close attention to others, engaging with them, and asking questions to build respect and understanding in the workplace.
• Confidence: Presenting ideas with confidence makes them more likely to be well-received. Confidence can be displayed through eye contact, body language, and clear, audible speech.
• Friendliness: Traits like honesty and kindness foster trust and understanding in the workplace. Smiling, asking about a colleague's day, or offering praise can go a long way.
• Empathy: Understanding and sharing the emotions of others helps build positive relationships and respond appropriately to anger, frustration, or enthusiasm.

Math Skills

• Basic operations: Proficiency in addition, subtraction, multiplication, and division is essential, especially when dealing with financial calculations.
• Percentages: Understanding percentages is crucial for calculating tips, sales tax, discounts, and more.
• Fractions and decimals: Converting between fractions and decimals is important for understanding financial values, such as $1 being equivalent to 1/4 or 0.25.
• Visual representation of data: Interpreting charts and graphs is a valuable skill for understanding and communicating data effectively.
• Solving for unknowns: Basic algebra skills are useful for solving equations and making calculations, such as determining the number of dog-walking jobs needed to reach a financial goal.

Career progression: work your way up from entry-level to senior roles

The first step to becoming an insurance underwriter is to obtain a bachelor's degree, preferably in a business-related field such as finance, accounting, or economics. This provides a solid foundation in financial and business concepts, as well as analytical and mathematical skills. During your degree, consider taking courses in data analysis and computer literacy, as these are highly valued in the industry.

After graduating, you can begin applying for entry-level positions within insurance organizations. These roles may include insurance policy processing clerks or procurement clerks. They provide an excellent opportunity to gain industry experience and develop a deeper understanding of insurance and financial applications.

Once you've gained some experience, you can start working towards obtaining relevant certifications. While not always required, certifications can open doors to more senior roles and demonstrate your commitment to the field. The Chartered Property and Casualty Underwriter (CPCU) certification is a popular choice, but there are also more specialized options like the Associate in Commercial Underwriting (AU) or Associate in Personal Insurance (API).

With a few years of experience and the right certifications under your belt, you can start applying for senior underwriter and underwriter manager positions. At this level, you may be responsible for supervising and training more junior underwriters.

If you're aiming for a senior leadership role, consider pursuing a Master of Business Administration (MBA). This advanced degree can enhance your career prospects and provide a competitive edge.

Throughout your career, it's important to stay up to date with new insurance issues, technologies, and regulatory changes. This may involve ongoing professional development and further certifications to ensure your skills remain current and marketable.

Remember, career progression in insurance underwriting is not a linear path. Each step builds on the last, and a combination of education, experience, and a willingness to learn will help you advance in your career.

Specialization: choose an area to specialize in, such as health, life, or property and casualty insurance

Specialization is an important aspect of becoming an insurance underwriter. Underwriters typically specialize in a specific area of insurance, such as health, life, or property and casualty insurance. Each of these areas has its own unique set of risks and considerations that underwriters must be familiar with. Here's a more detailed look at each of these specializations:

Health Insurance Underwriting

Health insurance underwriters focus on evaluating and assessing risks associated with insuring individuals or groups for health-related coverage. They consider factors such as medical history, age, pre-existing conditions, and demographics to determine the likelihood of future claims. Health insurance underwriters work closely with medical professionals and use advanced analytics to make informed decisions.

Life Insurance Underwriting

Life insurance underwriters assess the risks associated with providing life insurance coverage to individuals. They consider factors such as age, financial history, occupation, and lifestyle choices to determine the likelihood of a claim being made. Life insurance underwriters often use actuarial data and specialized software to calculate premiums and coverage amounts.

Property and Casualty Insurance Underwriting

Property and casualty insurance underwriters deal with a broad range of insurance types, including home insurance, auto insurance, and business insurance. They evaluate risks related to insuring property and assets against various perils, such as fire, theft, or natural disasters. Property and casualty underwriters may also assess liability risks, such as the potential for slip-and-fall injuries or accidents on a property. This specialization often involves conducting property inspections and working closely with field representatives.

When choosing a specialization, it's important to consider your interests and strengths. Each area of insurance underwriting has its own unique challenges and requirements. By selecting a specialization that aligns with your skills and passions, you can enhance your career satisfaction and long-term success as an insurance underwriter.

Frequently asked questions