Becoming An Insurance Underwriter: New York Requirements

If you're interested in becoming an insurance underwriter in New York, there are a few key steps you should follow. Firstly, you'll need to obtain a bachelor's degree in a relevant field such as business, finance, economics, or mathematics. This will provide you with the necessary analytical, computer, communication, and math skills for the role. While a degree is not always mandatory, it is preferred by most employers. Gaining work experience in the insurance industry, either through internships or entry-level positions, will also boost your chances of becoming an insurance underwriter.

Once you've gained the necessary education and experience, you can start applying for insurance underwriter jobs in New York. There are many companies in the city that offer these roles, including Zurich Insurance Company Ltd., Berkshire Hathaway Specialty Insurance, and Arch Capital Group Ltd.

It's important to note that becoming certified as an insurance underwriter can open up more senior-level opportunities and is often expected by employers. Some certifications to consider include the Chartered Property and Casualty Underwriter (CPCU) and the Chartered Life Underwriter (CLU).

Bachelor's degree in business, finance, economics, or mathematics

A bachelor's degree in business, finance, economics, or mathematics is a common entry point for aspiring insurance underwriters. This educational background provides a strong foundation for the role, equipping graduates with the necessary knowledge and skills to analyse financial data, assess risks, and make informed decisions.

A degree in business offers a broad understanding of business procedures and practices, while also developing strong math and analytical reasoning abilities. Courses in business ethics, financial accounting, and financial statement analysis are particularly relevant to the insurance industry.

For those pursuing a degree in finance, expect to delve into topics such as asset valuation, capital budgeting, financial markets, investment vehicles, and portfolio management. This knowledge will be directly applicable when evaluating insurance applications and determining appropriate coverage.

Economics degrees, on the other hand, provide a strong foundation in economic principles and theories, enabling graduates to understand the broader context in which the insurance industry operates. Microeconomic and macroeconomic analysis are particularly useful for assessing risks and making data-driven decisions.

Lastly, a degree in mathematics ensures proficiency in the technical aspects of the role, including data analysis and the use of underwriting software. Mathematics graduates are well-equipped to handle the complex calculations and statistical analysis inherent in the insurance underwriting process.

While the specific degree programs may vary, the underlying skills gained from these fields of study are highly transferable and advantageous for a career in insurance underwriting. Gaining expertise in these areas, complemented by strong analytical, computer, communication, and problem-solving skills, will set a solid foundation for aspiring insurance underwriters.

Entry-level job experience

Entry-level positions in insurance underwriting are available, but prior work experience in insurance is often preferred. Some common entry-level roles include insurance policy processing clerks or procurement clerks. These roles can help you develop the skills and knowledge needed to succeed as an insurance underwriter.

Most firms prefer to hire applicants with a bachelor's degree, typically in a related field such as business, finance, economics, or mathematics. However, some employers may hire candidates with an associate's degree or a high school diploma, provided they have relevant work experience.

In addition to a degree, certain certifications can enhance your employability and help you stand out to potential employers. While not always required for entry-level positions, certifications can be beneficial for career advancement. Some common certifications for insurance underwriters include:

• Chartered Property and Casualty Underwriter (CPCU)
• Life Underwriter Training Council Fellow (LUTCF)
• Chartered Life Underwriter (CLU)
• Associate in Commercial Underwriting (ACU)
• Associate in Personal Insurance (API)

It is also important to develop a strong set of technical skills, as insurance underwriters use various software programs and applications to analyze data and make decisions. Proficiency in programs like Excel and other industry-specific software is advantageous.

Strong analytical, communication, and problem-solving skills are also essential for insurance underwriters. The ability to evaluate large amounts of data, draw conclusions, and communicate these effectively to clients and colleagues is highly valued in this role.

Entry-level insurance underwriters typically work under the supervision of senior underwriters and receive on-the-job training. This training period can last a few months to a year and provides an opportunity to learn the basics of underwriting, including common risk factors and applications used in the industry.

Once you have gained some experience and developed your skills, you can begin to work independently and handle more complex tasks. With further experience and certifications, advancement to senior underwriter or underwriter management positions is possible.

Certification

While many entry-level insurance underwriting positions don't require any specific certifications, earning certain designations can demonstrate your skills and dedication to the field. These certifications can also qualify you for advanced insurance underwriting roles in the future.

Most employers expect insurance underwriters to eventually obtain certification, especially if you want to advance to a senior underwriter or underwriter management position. Becoming certified keeps you up to date with new insurance policies, new technology, and changes to state and federal regulations.

There are several certification options for aspiring insurance underwriters in New York. The Chartered Property and Casualty Underwriter (CPCU) certification, for instance, is designed for candidates with at least two years of insurance underwriting experience. This program is offered by The Institutes and requires candidates to complete four core courses, three concentration courses, one elective course, and an ethics course. Candidates must then pass an exam to be eligible for certification.

Another option is the Life Underwriter Training Council Fellow (LUTCF) certification, offered by The National Association of Insurance and Financial Advisors. This program covers the basics of practice management, life insurance, investment products, and risk management. It consists of three modules, after which candidates must pass an exam to be certified.

The Chartered Life Underwriter (CLU) certification is offered by The American College of Financial Systems. This program is designed for candidates with three years of life insurance-related work experience. Candidates must complete five core courses and three elective courses that cover life insurance planning and law, estate planning, and planning for business owners and professionals. An exam must be passed for eligibility.

Other types of insurance certification options are available through the National Association of Insurance and Financial Advisors and the American College of Financial Services.

Senior underwriter roles

Senior underwriters are responsible for supervising and training more junior underwriters. They will also be responsible for more complex tasks, such as assessing high-risk applications. They will need to have a strong understanding of the software used by the company, as well as the ability to collaborate with other professionals, such as field representatives and medical personnel, to gather more information.

Senior underwriters will also be expected to have a comprehensive understanding of insurance policies and goals, as well as strong interpersonal skills to communicate effectively with insurance brokers and customers. They will need to be able to explain policy options and negotiate terms.

In addition to a degree, senior underwriter roles will often require relevant certifications. These include the Chartered Property and Casualty Underwriter (CPCU) and the Associate in Commercial Underwriting (AU) or Associate in Personal Insurance (API) designations.

Senior underwriters are expected to have strong analytical and problem-solving skills, as well as the ability to make quick decisions. They must be detail-oriented and have a commitment to professional ethics and confidentiality.

New York-based insurance companies

There are several insurance companies based in New York City, including:

• Alleghany Corporation
• American International Group
• Atlantic Mutual Insurance Company
• The Guardian Life Insurance Company of America
• Manhattan Life Insurance Company
• New York Life Insurance Company
• The Travelers Companies

Some of the best insurance companies to work for in New York, according to Zippia, are:

• QBE Insurance Group
• Marsh McLennan Agency - Michigan
• AXA
• AmTrust Financial
• Ironshore Insurance
• Global Atlantic Financial Group Limited
• Transatlantic Holdings, Inc.
• Marsh & McLennan Companies
• National General Insurance
• Willis of New York Inc
• Teachers Insurance & Annuity Association of America
• SCOR Global Life USA Holdings, Inc.
• National Union Fire Insurance Company of Pittsburgh, Pa
• Kensington Vanguard National Land Services

Steps to Become an Insurance Underwriter in New York

To become an insurance underwriter in New York, you can follow these four steps:

• Pursue a relevant degree program: A bachelor's degree is typically required for insurance underwriter roles, with common fields including business, finance, or accounting. Courses in data analysis or computer literacy can also be beneficial.
• Gain professional experience: Entry-level positions within insurance organizations can provide valuable experience and help you learn the industry skills, rules, and policies.
• Seek certification: While not always required, earning certifications can enhance your qualifications and open doors to advanced underwriting roles. Examples include the Chartered Property and Casualty Underwriter (CPCU) designation or the Associate in Commercial Underwriting (AU) certification.
• Search and apply for insurance underwriter roles: Look for open positions at local insurance companies and reach out to your professional network for potential opportunities. Prepare a resume and cover letter highlighting your educational background, experience, skills, and career objectives.

Frequently asked questions