Life Insurance Underwriter: Getting Your Dream Job

Life insurance underwriters are responsible for reviewing life insurance applications and determining the level of risk involved in insuring an individual. They assess an applicant's medical history, family history, job, and other relevant information to evaluate the potential risks. To become a life insurance underwriter, you typically need a bachelor's degree in a relevant field such as business, finance, accounting, or economics, as well as strong analytical and investigative skills. Gaining professional experience and certifications can also enhance your qualifications and career prospects.

Entry requirements: a bachelor's degree in a relevant field, such as finance, business, or economics

A bachelor's degree in a relevant field is a common entry requirement for becoming a life insurance underwriter. While some employers may require a degree in a specific field, others may accept a range of degrees, including finance, business, economics, accounting, or mathematics. A degree in finance, business, or economics can provide a solid foundation for a career in life insurance underwriting by developing strong mathematical and analytical skills, as well as an understanding of business procedures and practices.

For instance, a degree in accounting can cover topics such as accounting principles, the accounting cycle, managerial accounting data, and business statistics. On the other hand, a degree in finance may include courses on business finance fundamentals, investment vehicles, portfolio management, and the international monetary environment. Elective courses in data analytics and computer literacy can also be beneficial.

In addition to a bachelor's degree, gaining professional experience through entry-level positions or internships in the insurance industry can enhance your resume and provide valuable skills for a career as a life insurance underwriter.

Gain professional experience: seek entry-level positions within insurance organisations to learn industry skills

Gaining professional experience is a crucial step in becoming a life insurance underwriter. While some organisations may hire recent graduates for insurance underwriter roles, many professionals begin their careers by taking entry-level positions within insurance organisations. This allows them to gain valuable industry knowledge, learn essential skills, and understand the rules and policies specific to the insurance sector.

There are several entry-level positions available within insurance organisations that can provide a great starting point for aspiring life insurance underwriters. Here are some roles to consider:

Insurance Policy Processing Clerk

Insurance policy processing clerks play a vital role in the day-to-day operations of an insurance company. They are responsible for handling various administrative tasks related to insurance policies. This may include processing policy applications, updating customer records, generating policy documents, and assisting with policy renewals or cancellations. This role provides a solid foundation in understanding the inner workings of insurance policies and the overall operations of an insurance company.

Procurement Clerk

A procurement clerk is responsible for supporting the procurement or purchasing activities within an insurance organisation. They may assist in processing purchase orders, maintaining vendor relationships, and ensuring that the company receives the best value for its purchases. While this role may not directly involve insurance policies, it offers valuable insights into the financial and operational aspects of the insurance industry.

Customer Service Representative

Customer service representatives are often the first point of contact for insurance customers. They handle inquiries, address concerns, and provide information about insurance products and services. This role is crucial in building and maintaining positive relationships with customers. As a customer service representative, you will develop strong communication and problem-solving skills, which are highly valued in the insurance industry.

Administrative Assistant

Administrative assistants provide support to insurance brokers or agents. Their duties may include answering inquiries about policies, adjusting coverage, creating identification cards and proof-of-insurance documents, and handling various administrative tasks. This role offers a behind-the-scenes perspective on the insurance industry and can be a great stepping stone for those seeking to advance within the field.

Claims Representative

Claims representatives assist insured individuals or businesses in navigating the claims process. They help customers file claims, collect and review relevant information, and facilitate communication between the insured and the insurance company. This role provides valuable experience in understanding the claims process, which is a significant aspect of the insurance industry.

These entry-level positions offer a great opportunity to gain professional experience and develop competencies that will serve as a strong foundation for a career as a life insurance underwriter. They allow individuals to become familiar with the insurance industry, build valuable skills, and work towards more advanced roles.

Develop key skills: analytical, communication, and attention to detail are essential

To become a life insurance underwriter, you'll need to develop a set of key skills that will enable you to excel in this role. These skills include analytical, communication, and attention to detail abilities, which are essential for a career in life insurance underwriting.

Analytical Skills

The ability to analyze large amounts of data and make informed decisions is crucial for life insurance underwriters. They must assess various factors, such as an applicant's medical history, family history, job, and other relevant information, to determine the level of risk associated with providing coverage. This involves strong investigative skills and the ability to interpret complex information.

Communication Skills

Effective communication skills are essential for conveying your findings and interacting with clients and colleagues. Life insurance underwriters need excellent writing skills to present their findings clearly and concisely in reports. They may also need to communicate complex information to non-expert stakeholders, such as policyholders and brokers.

Attention to Detail

Attention to detail is critical for life insurance underwriters to ensure accuracy in their work. Underwriters must carefully review insurance applications, analyze information, and enter data into software programs. A single mistake can have significant financial implications, so underwriters must be meticulous and thorough in their work.

Developing these key skills will provide a strong foundation for a career in life insurance underwriting. It is important to note that while some of these skills may come naturally, others can be cultivated through education, training, and experience. A combination of academic learning and practical application will help you excel in this field.

Certification: while not always required, certifications can lead to higher-level roles

Certification is not always necessary to get a job as a life insurance underwriter, but it can be beneficial for career advancement. While entry-level positions may not require specific certifications, earning designations like the Chartered Property and Casualty Underwriter (CPCU) can enhance your resume and open doors to advanced insurance underwriting roles.

The CPCU certification, for instance, indicates expertise in property and casualty insurance, and it is offered by The Institutes, a respected organisation in the field. Obtaining this certification typically involves completing online courses and passing comprehensive exams.

Other reputable institutions, such as the Insurance Institute of America and the American Institute for Chartered Property Casualty Underwriters, also offer relevant certifications. Pursuing these certifications can be advantageous, as they demonstrate your skills, dedication, and expertise in the field of insurance underwriting.

Additionally, gaining certifications can be useful when applying for senior-level positions. For example, the Chartered Life Underwriter (CLU) certification is offered by the American College of Financial Services. This certification, along with others, can help set you apart from other candidates and showcase your advanced knowledge and qualifications.

It is worth noting that some employers may be willing to cover the costs associated with obtaining certifications or provide time off to study and take exams. Therefore, it is beneficial to explore the options available and discuss potential support with your employer or HR department.

In summary, while certification may not be mandatory for entry-level life insurance underwriter positions, it can be a valuable asset for career progression and accessing higher-level roles.

Job search: research local insurance companies and network with industry professionals

To begin your job search as a life insurance underwriter, you should start by researching local insurance companies. This can be done through various online tools and websites that allow you to locate licensed insurance companies, producers, and business entities in your area. It is recommended that you compare at least three companies, considering factors such as cost, customer service, and the adequacy of the coverage they offer. Additionally, you can check for any complaints or misconduct associated with the companies to make an informed decision.

After identifying potential companies, you can try calling them directly or checking their websites and social media pages for more information. It is also beneficial to verify the license status of the companies and their agents to ensure they are authorized to sell insurance in your state.

While researching companies, it is essential to simultaneously focus on networking with industry professionals. Start by making the most of your existing contacts, including family, friends, neighbours, and social connections. You can arrange informal gatherings or meetings to discuss your career aspirations and explore potential opportunities.

Additionally, leverage your connections on LinkedIn and identify industry professionals you can reach through trade groups, alumni associations, or industry events. Craft a thoughtful introduction message and reach out to them. It is beneficial to practice your pitch and be clear about who you are, what you do, and how you can help others.

Networking events, both in-person and online, are also excellent avenues to connect with professionals in the insurance industry. Keep an eye out for events sponsored by trade groups, business groups, alumni associations, and organizations like EventBrite. Getting involved with professional organizations or community groups can further expand your network and create opportunities for personal and career growth.

Remember, building a strong network takes time, but it can open doors to new relationships, friendships, and sales opportunities. Focus on quality connections with a targeted audience, and your consistent efforts will pay off.

Frequently asked questions