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How to become an Underwriter?
Lend your expertise: what does it take to become an Underwriter?
Note: We've seen a lot of interest in this career, so we're looking for guidance from our community of professionals.
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6 answers
Joshua Bawer
Financial analysis
2
Answers
Cambridge, Massachusetts
Updated
Joshua’s Answer
There's a diverse array of underwriting roles available, and here's how you can navigate them:
Underwriters are masters of organization. They meticulously gather information from clients, using it to construct a comprehensive financial profile. This includes assessing risk exposures, payment capabilities, and more. The essence of this process is to decide whether to provide coverage to the potential client and at what cost. If you find joy in deciphering valuable insights from data and numbers, and relish the responsibility of making informed decisions, underwriting could be your calling!
Ensure you have the necessary qualifications. A college degree is typically a prerequisite. Favorable majors often include Finance and Business, but they're not mandatory. Once you embark on your underwriting journey, there are professional credentials to aim for, such as Fellow, Life Management Institute (FLMI), Chartered Life Underwriter (CLU), and Chartered Property Casualty Underwriter (CPCU).
Immerse yourself in the industry. Familiarize yourself with the companies in your desired location. Do they have a solid performance history? How do they nurture their existing talent? The more you know, the better prepared you'll be to make your mark in the underwriting world!
Underwriters are masters of organization. They meticulously gather information from clients, using it to construct a comprehensive financial profile. This includes assessing risk exposures, payment capabilities, and more. The essence of this process is to decide whether to provide coverage to the potential client and at what cost. If you find joy in deciphering valuable insights from data and numbers, and relish the responsibility of making informed decisions, underwriting could be your calling!
Ensure you have the necessary qualifications. A college degree is typically a prerequisite. Favorable majors often include Finance and Business, but they're not mandatory. Once you embark on your underwriting journey, there are professional credentials to aim for, such as Fellow, Life Management Institute (FLMI), Chartered Life Underwriter (CLU), and Chartered Property Casualty Underwriter (CPCU).
Immerse yourself in the industry. Familiarize yourself with the companies in your desired location. Do they have a solid performance history? How do they nurture their existing talent? The more you know, the better prepared you'll be to make your mark in the underwriting world!
Radha Kanuparthy
quality Analyst
2
Answers
Mechanicsburg, Pennsylvania
Updated
Radha’s Answer
Becoming an underwriter typically involves a series of steps that include education, gaining experience, and potentially obtaining professional certification.
In general the path you can follow to become Underwriter is
1. Earn a Bachelor's Degree
Most underwriters have at least a bachelor's degree. The field of study isn't strictly specified, but degrees in business, finance, economics, or mathematics can provide a strong foundation for an underwriting career.
2. Gain Relevant Experience
Entry-level positions in banking, finance, or insurance can provide the necessary experience and industry knowledge. These roles often involve assisting experienced underwriters and learning about risk assessment and decision-making.
3. Become an Underwriter Trainee
Many companies offer underwriter trainee programs, where you can learn the ropes from experienced underwriters. These programs provide on-the-job training and allow you to gradually take on more responsibility as you gain experience.
4. Pursue Advancement
With experience, underwriters can advance to senior or management roles. This often involves handling more complex underwriting assignments and making more critical risk assessment decisions.
5. Obtain Certification (Optional)
While not always required, professional certification can demonstrate your expertise and commitment to the underwriting profession. There are several organizations that offer certifications, including The Institutes, the Mortgage Bankers Association, and the National Association of Health Underwriters. Certification usually involves meeting education and experience requirements and passing an examination.
Remember to research the specific requirements for your desired role and industry, as they can vary. For example, underwriters in the insurance field may have different requirements compared to those in the mortgage industry.
In general the path you can follow to become Underwriter is
1. Earn a Bachelor's Degree
Most underwriters have at least a bachelor's degree. The field of study isn't strictly specified, but degrees in business, finance, economics, or mathematics can provide a strong foundation for an underwriting career.
2. Gain Relevant Experience
Entry-level positions in banking, finance, or insurance can provide the necessary experience and industry knowledge. These roles often involve assisting experienced underwriters and learning about risk assessment and decision-making.
3. Become an Underwriter Trainee
Many companies offer underwriter trainee programs, where you can learn the ropes from experienced underwriters. These programs provide on-the-job training and allow you to gradually take on more responsibility as you gain experience.
4. Pursue Advancement
With experience, underwriters can advance to senior or management roles. This often involves handling more complex underwriting assignments and making more critical risk assessment decisions.
5. Obtain Certification (Optional)
While not always required, professional certification can demonstrate your expertise and commitment to the underwriting profession. There are several organizations that offer certifications, including The Institutes, the Mortgage Bankers Association, and the National Association of Health Underwriters. Certification usually involves meeting education and experience requirements and passing an examination.
Remember to research the specific requirements for your desired role and industry, as they can vary. For example, underwriters in the insurance field may have different requirements compared to those in the mortgage industry.
Brandon McGrath
Consultant
3
Answers
Casselberry, Florida
Updated
Brandon’s Answer
The answers above are wonderful. If you are aiming to follow this career path out of the gate, then I would follow their advice. I wanted to add how I started to do insurance underwriting on accident (to hopefully motivate you).
I have a degree in Finance, and have been working in Pension Administration. I had a job in my 20s helping individuals sign up for insurance, and a manager at my consulting firm asked if I would like to assist an underwriting team as a break from Pension Work.
Within a month, I was requesting all necessary information from the insurance vendors and clients, and used a template provided to me to enter the information and generate projections.
My key points are these:
- There is a heavy demand for underwriters, so it is an excellent career path
- Don't let school or training get you down, as in almost any role you will start small with someone else's foundational templates
- If you follow the advice of the individuals above and are a detail oriented person, you will succeed
I have a degree in Finance, and have been working in Pension Administration. I had a job in my 20s helping individuals sign up for insurance, and a manager at my consulting firm asked if I would like to assist an underwriting team as a break from Pension Work.
Within a month, I was requesting all necessary information from the insurance vendors and clients, and used a template provided to me to enter the information and generate projections.
My key points are these:
- There is a heavy demand for underwriters, so it is an excellent career path
- Don't let school or training get you down, as in almost any role you will start small with someone else's foundational templates
- If you follow the advice of the individuals above and are a detail oriented person, you will succeed
Kim Arskii
Social Media Analyst
145
Answers
St. Augustine, Florida
Updated
Kim’s Answer
To become an Underwriter, it's essential to focus on a few key steps. Firstly, obtaining a bachelor's degree in finance, business, economics, or a related field lays a solid foundation for this career path. Additionally, gaining practical experience in entry-level roles within insurance companies or financial institutions can provide valuable insights into the industry and the underwriting process.
Developing strong analytical skills is crucial for Underwriters as they need to evaluate risks, financial data, and other information to make informed decisions. Understanding industry regulations and staying updated on industry trends is also essential to ensure compliance and effective decision-making.
Furthermore, pursuing professional certifications like the Chartered Property and Casualty Underwriter (CPCU) designation can help enhance your credentials and showcase expertise in the field. By continuously learning and growing in the field of underwriting, you can work towards a successful career in this challenging yet rewarding profession. I
Developing strong analytical skills is crucial for Underwriters as they need to evaluate risks, financial data, and other information to make informed decisions. Understanding industry regulations and staying updated on industry trends is also essential to ensure compliance and effective decision-making.
Furthermore, pursuing professional certifications like the Chartered Property and Casualty Underwriter (CPCU) designation can help enhance your credentials and showcase expertise in the field. By continuously learning and growing in the field of underwriting, you can work towards a successful career in this challenging yet rewarding profession. I
Chad Oliver
Sales Trainer and Mortgage Banker
1
Answer
Cleveland, Ohio
Updated
Chad’s Answer
Absolutely, Kim’s insight about the importance of hands-on experience is spot on!
Starting as a mortgage banker was a smart move. It allowed you to build a solid foundation of practical knowledge in the field. The combination of understanding mortgage intricacies and achieving a high closing rate for loans opened doors to exciting opportunities.
Here’s the formula for success:
Base Knowledge (BK):
Begin with a role that provides fundamental knowledge. In your case, that was being a mortgage banker. This is your BK.
Performance (P):
Excel in your role. Your high closing rate demonstrates your performance.
Opportunities (O):
As your P increases, so do your O. More doors swing open!
Mathematically, it looks like this:
Opportunities=Base Knowledge×Performance
Keep seizing those opportunities, and who knows what heights you’ll reach!
Starting as a mortgage banker was a smart move. It allowed you to build a solid foundation of practical knowledge in the field. The combination of understanding mortgage intricacies and achieving a high closing rate for loans opened doors to exciting opportunities.
Here’s the formula for success:
Base Knowledge (BK):
Begin with a role that provides fundamental knowledge. In your case, that was being a mortgage banker. This is your BK.
Performance (P):
Excel in your role. Your high closing rate demonstrates your performance.
Opportunities (O):
As your P increases, so do your O. More doors swing open!
Mathematically, it looks like this:
Opportunities=Base Knowledge×Performance
Keep seizing those opportunities, and who knows what heights you’ll reach!
Emily Solon
collateral underwriter
7
Answers
Cleveland, Ohio
Updated
Emily’s Answer
Underwriters are experts in their field - for my journey I was a mortgage banker first. This didn't require a college degree, but having some experience in sales helped me. After a couple years of banking I felt confident in my knowledge to expand into underwriting. I was fortunate enough to make an internal transfer with my company and received the appropriate training from them. There was a lot I hadn't encountered from the banking side, but I still use the knowledge I have from banking in my every day work.