Breaking Into Insurance Underwriting: Gaining That First Role

If you're interested in becoming an insurance underwriter, there are a few different routes you can take to get started in this career. While some insurance underwriters have bachelor's degrees in business, finance, economics, or mathematics, it is possible to become an underwriter without a degree. Here are some steps you can take to become an insurance underwriter with no experience:

1. Earn a degree: Although not all insurance underwriters have a degree, having an undergraduate degree in a relevant subject such as business, finance, or economics can be helpful.

2. Undertake an apprenticeship: Instead of getting a degree, you can pursue an apprenticeship, which will allow you to earn a wage while completing on-the-job learning in the field of underwriting.

3. Apply for entry-level roles: It is possible to become a junior underwriter without formal qualifications. Look for roles that offer on-the-job training and be sure to highlight any transferable skills you have when applying.

4. Network: Building a network of connections in the industry can be helpful in finding job opportunities.

5. Gain work experience: Consider starting with an entry-level position in the insurance industry, such as an insurance policy processing clerk or a procurement clerk, to gain experience and learn about the industry.

6. Meet licensing and certification requirements: Many insurance companies require underwriters to attain professional certifications, especially for management and senior-level positions.

Earn a bachelor's degree in a business-related field

Earning a bachelor's degree in a business-related field is a crucial step towards becoming an insurance underwriter. While it is possible to enter the field without a degree, having one can significantly enhance your career prospects and provide a solid foundation of knowledge and skills.

A bachelor's degree in business, finance, economics, or a related field will equip you with a strong understanding of core business concepts, financial services, business administration, valuation, financial modelling, and allocation of financial resources. This knowledge will be invaluable when assessing insurance applications and determining the risks and premiums.

During your degree, you will also develop essential skills such as analytical reasoning, problem-solving, communication, and decision-making abilities. These skills are highly valued in the insurance industry and will enable you to effectively evaluate and manage risks. Additionally, courses in mathematics and statistics will provide you with the quantitative skills necessary for analysing data and making informed decisions.

When choosing your degree programme, consider institutions that offer insurance underwriting courses and classes. This will allow you to gain specialised knowledge and skills relevant to the field. Additionally, look for programmes that provide opportunities for internships or work placements, as these can give you valuable industry experience and help you stand out to potential employers.

While a bachelor's degree is a common requirement for entry-level positions, it is important to note that some employers may also seek candidates with relevant work experience or computer proficiency. Therefore, combining your degree with industry experience or certifications can further enhance your employability and help you secure a position as an insurance underwriter.

Gain work experience in an entry-level insurance role

Gaining work experience in an entry-level insurance role is a crucial step toward becoming an insurance underwriter. Here are some tips to help you get started:

Understand the Role of an Insurance Underwriter

Before embarking on your job search, it is essential to comprehend the role of an insurance underwriter. Insurance underwriters evaluate insurance applications and determine whether to accept or reject them. They assess the risks associated with insuring individuals, properties, or assets and set the premiums for insurance policies. Understanding the responsibilities and requirements of the role will help you better prepare for entry-level positions in the insurance industry.

Develop the Necessary Skills

Insurance underwriters need a combination of technical skills and soft skills. Technical skills such as analytical skills, computer proficiency, and mathematical abilities are highly valued. Additionally, soft skills like communication, problem-solving, decision-making, and attention to detail are also crucial for success in this field. Start by identifying your strengths and weaknesses, and then work on developing the skills that insurance companies look for in entry-level candidates.

Explore Entry-Level Positions

There are various entry-level positions within the insurance industry that can provide a great starting point for aspiring insurance underwriters. These roles may include insurance policy processing clerk, procurement clerk, customer service representative, or underwriting assistant. These positions offer valuable experience in the insurance industry, allowing you to gain insights into the day-to-day operations and develop a solid understanding of insurance policies and procedures.

Network and Build Connections

Building a professional network within the insurance industry can significantly enhance your job prospects. Attend industry events, join relevant professional organisations, and connect with professionals on platforms like LinkedIn. Networking can provide you with valuable insights, mentorship opportunities, and even notifications about job openings that may not be widely advertised. It is also beneficial to seek out mentorship or shadowing opportunities with experienced underwriters to gain first-hand knowledge of the role.

Enhance Your Resume and Cover Letter

When applying for entry-level insurance positions, it is essential to have a well-crafted resume and cover letter. Highlight any relevant skills, educational background, and experiences that demonstrate your suitability for the role. Emphasise your analytical capabilities, computer proficiency, and attention to detail. If you have completed any internships or projects related to insurance, be sure to include them. Additionally, tailor your resume and cover letter to each job description, showcasing how your qualifications align with the specific requirements of the position.

Be Open to Learning

The insurance industry is constantly evolving, and underwriters need to stay updated with new developments, regulations, and technologies. Demonstrating a willingness to learn and adapt to industry changes is crucial. Highlight this trait during your job search and be open to learning new skills on the job. Many insurance companies provide on-the-job training and mentorship programs to help entry-level employees develop the necessary skills for underwriter positions.

Develop key soft skills like analytical reasoning and problem-solving

To become an insurance underwriter, you will need to develop strong analytical reasoning and problem-solving skills. These skills will enable you to evaluate insurance applications, assess risks, and make informed decisions. Here are some tips to enhance these key soft skills:

• Educational Background: Pursue a bachelor's degree in fields such as business, finance, economics, or mathematics. These academic programs will provide you with a solid foundation in analytical and quantitative reasoning. Courses in accounting, financial statement analysis, business statistics, and asset valuation will particularly enhance your analytical capabilities.
• Research and Fact-Checking: Develop your research skills to find relevant data, form opinions, and make informed decisions. Learn to verify information and facts to ensure the accuracy of your analysis.
• Creative and Critical Thinking: Creativity is an important aspect of problem-solving. Cultivate your ability to think outside the box and consider fresh approaches to complex issues. Combine creativity with critical thinking to evaluate problems effectively and identify practical solutions.
• Decision-Making: Enhance your decision-making skills by considering various outcomes and choosing the most suitable option. Weigh the risks and rewards carefully, especially when deciding whether to accept or reject insurance applications.
• Troubleshooting: Learn to identify the root cause of a problem. This skill will be valuable when dealing with technical issues, customer inquiries, or complex application assessments.
• Communication: Strong communication skills will enable you to collaborate effectively with colleagues, clients, and professionals from various fields. Effective communication ensures that you can gather necessary information, explain your analysis, and make compelling arguments when needed.
• Organization: Organizational skills will help you manage your workload and maintain a structured approach to problem-solving. This includes ordering data, managing resources, and conducting proper research to support your decisions.
• Interpretation: Develop your ability to analyze explicit and implied data. Interpretation skills are crucial when assessing market data, credit scores, medical information, and other factors that influence insurance underwriting decisions.
• Problem Sensitivity: Cultivate your ability to recognize issues proactively. This skill will help you anticipate potential problems and adjust your strategies accordingly.
• Inductive Reasoning: Strengthen your inductive reasoning skills to make general conclusions based on specific information. This involves using your experience and knowledge to make independent decisions with confidence.

Remember, developing these soft skills is a continuous process. Stay receptive to feedback, seek out learning opportunities, and refine your analytical reasoning and problem-solving abilities as you advance in your career as an insurance underwriter.

Pursue relevant certifications like Chartered Property and Casualty Underwriter (CPCU)

To become an insurance underwriter, you'll need to pursue relevant certifications such as the Chartered Property and Casualty Underwriter (CPCU) credential. This certification is highly regarded in the insurance industry and can help you advance in your career. Here are some key points about the CPCU certification:

Requirements

To obtain the CPCU credential, candidates must meet specific requirements, including passing several classes and an exam. The curriculum covers insurance and risk management topics and is designed to provide a comprehensive understanding of these subjects. The required coursework includes:

• Five core courses: Foundations of Risk Management and Insurance, Insurance Operations, Business Law for Insurance Professionals, Finance and Accounting for Insurance Professionals, and Insurance Data and Technology.
• Three courses in either commercial or personal lines.
• One elective course chosen by the candidate.
• An ethics exam.

Benefits

The CPCU certification offers several benefits for those aspiring to become insurance underwriters:

• Enhanced Employability: The CPCU certification is widely recognised and respected in the insurance industry. It demonstrates a strong understanding of risk management and insurance principles, making it a valuable credential for insurance underwriters.
• Career Advancement: This certification can help you advance in your career and qualify for senior underwriter or management positions. It shows your commitment to professional development and staying up-to-date with industry trends.
• Networking Opportunities: Upon obtaining the CPCU credential, you gain access to the CPCU Society, a professional organisation with chapters worldwide. This provides valuable networking opportunities and allows you to connect with other risk management and insurance professionals.
• Specialised Knowledge: The CPCU curriculum is designed to provide in-depth knowledge of insurance and risk management. This specialised knowledge will enable you to make informed decisions and effectively assess and manage risks.

Process

The process of obtaining the CPCU certification typically takes 18 to 24 months to complete. Here are the steps you can follow to pursue this certification:

• Check Eligibility: Ensure you meet the eligibility requirements, which include having at least two years of insurance underwriting experience.
• Enrol in the Program: Contact The Institutes, the organisation that offers the CPCU certification, to enrol in the program and obtain the necessary study materials.
• Complete Coursework: Dedicate yourself to studying the required coursework, which includes the core courses, elective courses, and the ethics component.
• Pass the Exam: Prepare for and successfully pass the CPCU exam, demonstrating your knowledge and understanding of the material.
• Maintain Ethical Standards: Agree to abide by the professional code of conduct to maintain the integrity of the CPCU designation.

By pursuing the CPCU certification, you'll gain specialised knowledge, enhance your employability, and increase your opportunities for career advancement in the insurance industry. It is a valuable step towards becoming a successful insurance underwriter.

Network with professionals in the insurance industry

Networking is a crucial aspect of career development, and it can be especially beneficial when trying to break into a new industry like insurance. Here are some tips and strategies for networking as someone aspiring to become an insurance underwriter with no prior experience:

• Start with your existing network: Begin by letting your friends, family, and acquaintances know about your career goals and interest in insurance underwriting. You never know who might have a connection to someone in the industry or even a job opportunity. Ask them to introduce you to any insurance professionals they may know, or for advice if they work in a related field.
• Join professional organisations: Become a member of insurance industry associations and groups, such as The Institutes, The National Association of Insurance and Financial Advisors, or local chapters of insurance professionals. These organisations often host networking events, workshops, and conferences where you can meet potential mentors and peers. They also provide valuable resources and industry insights.
• Attend industry events: Keep an eye out for insurance industry conferences, trade shows, and networking events. These gatherings provide excellent opportunities to meet professionals from various insurance companies and learn about the latest trends and developments in the field.
• Utilise social media: Make use of professional networking platforms like LinkedIn to connect with insurance underwriters and professionals. Join groups and discussions related to insurance underwriting, and engage in conversations to demonstrate your interest and knowledge. You can also use social media to follow industry influencers and stay informed about the latest news and developments.
• Reach out to professionals: Don't be afraid to reach out to insurance underwriters or professionals via email or LinkedIn. Express your interest in their work and ask if they would be open to a brief informational interview, where you can learn about their career path and gain insights. Most people are flattered to be asked for advice and are willing to help aspiring professionals.
• Build relationships: When you do connect with someone, focus on building a genuine relationship rather than just collecting contacts. Be authentic and show a genuine interest in the person and their work. Ask meaningful questions, listen actively, and look for ways to provide value to them as well. Stay in touch periodically and update them on your progress.
• Offer to help: One of the best ways to build relationships is by offering your assistance. If you come across an opportunity that could benefit someone in your network, such as a job opening or industry resource, don't hesitate to share it with them. This not only strengthens your connection but also demonstrates your willingness to support others.
• Be open to learning: As a newcomer to the industry, embrace a learner's mindset. Be curious, ask questions, and seek feedback from the professionals you meet. Show that you are eager to absorb knowledge and advice from their experiences. This will not only help you gain valuable insights but also leave a positive impression.
• Stay persistent: Building a solid professional network takes time and effort. Don't get discouraged if your initial attempts don't yield immediate results. Consistently attend events, follow up with connections, and stay active in industry circles. The more people you meet and the more value you provide, the stronger your network will become.

Remember, networking is about building genuine connections and creating mutually beneficial relationships. Be patient, stay proactive, and don't be afraid to put yourself out there. By consistently networking and learning from insurance professionals, you'll not only gain valuable insights into the industry but also increase your chances of finding mentorship and job opportunities.

Frequently asked questions