Insurance Underwriting Companies: A Guide to Careers and Certifications

Working in insurance underwriting can be a rewarding career, with many opportunities for growth and advancement. In the United States, there are over 6,000 insurance companies, with the top 10 companies accounting for nearly 50% of the market share.

To become an insurance underwriter, you'll typically need a bachelor's degree in a field like business, finance, or economics. Many underwriters also hold professional certifications, such as the Associate in Underwriting (AU) designation.

Insurance underwriting companies often have a formal training program for new employees, which can last from several months to a year or more. During this time, you'll learn about insurance laws, regulations, and industry standards.

With experience and additional education, you can move into senior underwriting roles or specialize in a particular type of insurance, such as life or health insurance.

Insurance companies play a crucial role in the insurance underwriting process. They are responsible for determining the risk level of potential policyholders and setting premiums accordingly.

Some insurance companies use automated systems to evaluate risk, while others rely on human underwriters to make decisions.

Many insurance companies have a minimum income requirement for policyholders, which can vary depending on the type of insurance being applied for.

Insurance companies often consider factors such as credit score, driving history, and medical history when evaluating risk.

A good credit score can lead to lower premiums, while a poor credit score may result in higher premiums or even policy rejection.

Here's a brief overview of the top insurers:

AmTrust Financial Services is a notable insurer that offers a wide range of insurance products, including property and casualty insurance.

They have a significant presence in the US market, with operations in over 30 states.

Allstate is another prominent insurer that provides a variety of insurance products, including auto, home, and life insurance.

Hiscox Ltd is a global specialist insurer that's renowned for its expertise in niche markets. The company operates through three main segments: Hiscox Retail, Hiscox London Market, and Hiscox Re & ILS.

Hiscox has a strong presence at Lloyd's of London, underwriting a diverse range of personal and commercial insurance products. This includes cyber, fine art, and high-value property coverage.

Hiscox's innovative approach to risk management has earned the company numerous industry accolades. Its shares are listed on the London Stock Exchange, and it's a constituent of the FTSE 100 Index.

Hiscox's revenue for 2022 was £4.4bn (US$5.8bn).

Here's a rundown of the top 25 commercial insurers that you should know about.

The top 25 commercial insurers include giants like State Farm, which provides coverage to over 80 million households in the US.

GEICO is another major player, offering insurance to over 16 million policyholders.

Liberty Mutual has a strong presence in the US, with over 9 million customers.

Travelers has a long history dating back to 1864 and is still one of the largest commercial insurers today.

USAA is a top choice for businesses, offering tailored insurance solutions for over 12 million policyholders.

Allstate provides insurance to over 16 million households, making it one of the largest commercial insurers in the US.

Progressive is known for its innovative insurance products and has over 18 million customers.

Erie Insurance has been around since 1925 and is still a top choice for businesses today.

Nationwide offers insurance to over 9 million households and has a strong presence in the US.

Amica Mutual has been around since 1907 and is still a top choice for businesses today.

IoT is transforming the underwriting process, giving underwriters a better perspective of risks with access to real-world data from connected equipment and vehicles.

AI is automating the underwriting process, making it lightning-fast. Underwriters can now make proactive decisions with continual input.

Underwriting service providers are entering the market to cater to different enterprise needs. Financial Services Review has compiled lists of top underwriting service providers to help enterprises choose the best fit.

The Top 10 Underwriting Service Providers – 2021 list is a valuable resource for enterprises looking for the right service provider.

To become a successful insurance underwriter, you'll need to have the right certifications and skills under your belt. Insurance underwriters are expected to obtain certification as they progress through their careers, especially if they're targeting a senior underwriter role or an underwriter management position.

Some essential certifications for insurance underwriters include those that keep them updated about new products, regulatory changes, and the latest innovations. These certifications vary by line, but they're all designed to help professionals like underwriters stay current and competitive in the industry.

The five most essential skills for an insurance underwriter to possess are analytical skills, decision-making skills, attention to detail, interpersonal and communication skills, and math skills. To excel in their roles, underwriters need to be able to evaluate large sums of information, make accurate decisions, and communicate effectively with clients and other industry professionals.

Here are the top skills you'll need to become an insurance underwriter:

Certifications are a crucial step in advancing your career as an insurance underwriter. To become a senior underwriter or even an underwriter manager, you'll need to obtain certification.

Most companies will help you obtain certifications as you gain more experience. You'll need to take special courses and pass exams to qualify.

Obtaining certifications will keep you updated on new products, regulatory changes, and the latest innovations in the industry. This is especially important for senior underwriters and underwriter managers.

You can choose from a variety of underwriting certifications, each offering unique benefits. Some examples include certifications for senior underwriters and underwriter managers.

To become a successful underwriter, you'll need to possess a specific set of skills. Analytical skills are a must, as underwriters need to evaluate large sums of information and strike a balance between risk and caution.

Decision-making skills are also crucial, as underwriters have to sift through various factors to determine whether an applicant should be approved for coverage. They must also decide on premiums and terms and conditions for coverage.

Attention to detail is essential, as underwriters need to maintain sharp focus when reviewing insurance applications. Each item has an impact on the coverage decision, and a single mistake can have serious consequences.

Interpersonal and communication skills are also vital, as underwriters deal with clients and other industry professionals on a daily basis. They need to be able to relate to and communicate well with others.

Math skills are a must, as underwriters involve a lot of calculations to determine premiums and probability of losses. They need to have superior numeracy skills to excel in their roles.

Here are the five essential skills for an underwriter:

Having the right work ethic and skills can make all the difference in becoming a successful underwriter. By possessing these essential skills, you'll be well on your way to a rewarding career in underwriting.

If you're considering a career as an underwriter, it's essential to have a degree that provides a solid foundation in the skills and concepts you'll need to know.

Business, accounting, finance, and economics degrees are among the best options for underwriters, as they cover the essential knowledge and skills required for the job.

You can also consider taking a Master of Business Administration, especially if you already have a degree that's not directly related to insurance underwriting.

Building on your tech skills is also a plus, as underwriters often use hi-tech tools in their work.

To become an underwriter, you'll typically start as a trainee or assistant underwriter, working under a senior underwriter to learn the ropes.

Most underwriters start their careers in this way, even if they have a degree in a related field like business or finance.

If you're hired as a trainee or assistant underwriter, expect to gain experience and eventually take special courses and exams to obtain certifications, which your company will likely help you with.

Becoming an underwriter can be a rewarding career, and understanding the career path can help you get started. Most underwriters start off as a trainee or assistant underwriter, working under a senior underwriter to learn the ropes.

You'll have the opportunity to gain experience and learn the skills needed to succeed in the role. If you're hired as a trainee or assistant underwriter, expect to work under a senior underwriter to learn the job.

As you gain more experience, the company will likely help you obtain certifications, which typically involve taking special courses and exams. This is a great way to take your skills to the next level and advance in your career.

Here's a breakdown of the typical career progression for an underwriter:

Remember, becoming a successful underwriter takes time, patience, and hard work. With the right skills and experience, you can build a rewarding career in this field.

Being an underwriter can be a stressful job, requiring the ability to make quick decisions based on facts. It involves a lot of responsibility.

To assess risks objectively, underwriters need to be highly familiar with insurance regulations, risk management, risk assessment, and finance. This requires a strong foundation in these areas.

A strong work ethic is essential for a successful and respected underwriter, which means being organized and methodical in your work. Meeting tight deadlines is also a must.