### Bureau of Labor Statistics U.S. Bureau of Labor Statistics

Insurance Underwriters Summary
                        
            
                                                        
                                                                
                        
            
            
            
                            
                                                
                                                
                                                
                                                
            									
							
				                                                
                                            




            			insurance underwriters imageInsurance underwriters determine the risk of insuring a client.							
						Quick Facts:     Insurance Underwriters2023     Median Pay
            						$77,860     per year
										$37.44     per hourTypical Entry-Level Education
                                    Bachelor's degreeWork Experience in a Related Occupation
                                    NoneOn-the-job Training
                                    Moderate-term on-the-job trainingNumber of Jobs, 2022
                                    125,500Job Outlook, 2022-32
                                    -2% (Decline)Employment Change, 2022-32
                                    -3,000What Insurance Underwriters Do
                                                
                        
                        
Insurance underwriters evaluate insurance applications and decide whether to approve them.
            
                        Work Environment
                        
Insurance underwriters work in an office setting during regular business hours. Most work full time.
            
                                                How to Become an Insurance Underwriter
                                                
                        
Insurance underwriters typically need a bachelor’s degree to enter the occupation. Certification may be beneficial.
            
                        Pay
                        												                            																				    														The median annual wage for insurance underwriters was $77,860 in May 2023.									                                					
						
            
                        Job Outlook
                        						
												Employment							of insurance underwriters is projected to decline							 2 percent from 2022 to 2032.
						Despite declining  employment, about 8,200 openings for insurance underwriters are projected each year, on average, over the decade.
            			
            			 All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.
						State & Area Data
                       Explore resources for employment and wages by state and area for insurance underwriters.
            
            
						
                        Similar Occupations
                        
                                                    Compare the job duties, education, job growth, and pay of insurance underwriters with similar occupations.
            
            
                        More Information, Including Links to O*NET
                        
                                               
                        Learn more about insurance underwriters by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.
 What Insurance Underwriters Do 
            

			Insurance underwritersMost insurance underwriters specialize in one of three broad fields: health, life, and property and casualty.			
Insurance underwriters evaluate insurance applications and decide whether to approve them. For approved applications, underwriters determine coverage amounts and premiums.
Duties
Insurance underwriters typically do the following:
Analyze information stated on insurance applications
Determine the risk involved in insuring a client
Screen applicants based on set criteria
Use automated software to determine the risk of insuring applicants
Review recommendations from underwriting software
Contact field representatives, medical personnel, and others to obtain additional information
Decide whether to offer insurance
Determine appropriate premiums and amounts of coverageUnderwriters are the main link between an insurance company and an insurance sales agent. Insurance underwriters use computer software to analyze risk for determining whether to approve an applicant. They take specific information about an applicant and enter it into a program. The program then provides recommendations on coverage and premiums. Underwriters evaluate these recommendations and decide whether to approve or reject the application. If a decision is difficult, they may consult additional sources, such as medical documents and credit scores.
For simple and common types of insurance, such as automobile insurance, underwriters typically rely on automated recommendations. For specific and complex insurance types, such as workers’ compensation, underwriters need to rely more on analytical insight.
Underwriters analyze the risk factors appearing on an application. For example, if an applicant reports a previous bankruptcy, the underwriter must determine whether that information is relevant to the policy being applied for. If relevant, the underwriter would then consider how far in the past the bankruptcy occurred and how the applicant’s financial situation has changed since the bankruptcy filing.
Insurance underwriters must achieve a balance between risky and cautious decisions. If underwriters allow too much risk, the insurance company will pay out too many claims. But if they don’t approve enough applications, the company will not make enough money from premiums.
Most insurance underwriters specialize in one of three broad fields: health, life, and property and casualty. Although the job duties in each field are similar, the criteria that underwriters use vary. For example, for someone seeking life insurance, underwriters consider the person’s age and financial history. For someone applying for car insurance (a form of property and casualty insurance), underwriters consider the person’s driving record.
Within the broad field of property and casualty, underwriters may specialize in commercial (business) insurance or personal insurance. They also may specialize by the type of policy, such as for insuring automobiles, homes, or pets.
 Work Environment
			Insurance underwritersMost underwriters work full time.			

	    
				
	
	
	
	
	
	
	    					 Insurance underwriters held about 125,500 jobs in 2022. The largest employers of insurance underwriters were as follows:
        Direct insurance (except life, health, and medical) carriers
                46%Insurance agencies and brokerages
                26Other insurance related activities
                5Direct health and medical insurance carriers
                4Credit intermediation and related activities
                3Underwriters work in an office setting during regular business hours. They spend much of their time alone at a computer, most often working on applications but sometimes handling customer inquiries.
Some property and casualty underwriters travel to assess properties in person.
Work Schedules
Most underwriters work full time.
 How to Become an Insurance Underwriter

			Insurance underwritersMost firms prefer to hire applicants with a bachelor’s degree.			
Insurance underwriters typically need a bachelor’s degree to enter the occupation. However, candidates who have an associate's degree or a high school diploma and insurance-related work experience sometimes qualify for positions. Certification may be beneficial.
Education
Employers usually prefer to hire candidates who have a bachelor’s degree. A common field of degree is business. Coursework in finance, economics, and mathematics is helpful.
Some colleges and universities partner with local businesses to offer internships. These opportunities allow students to gain knowledge or practical experience through assisting in a variety of tasks, such as underwriting.
Training
Beginning underwriters typically work under the supervision of senior underwriters for up to 12 months. Trainees work on basic applications and learn the most common risk factors. Some companies offer training programs that include classroom instruction on the basics of underwriting.
As new underwriters gain experience, they may work independently and handle more complex applications.
Licenses, Certifications, and Registrations
Employers may expect underwriters to become certified through coursework. These courses are important for keeping current with new insurance policies and changes in state and federal regulations.
Many options are available for certification or insurance specialty designations. Examples include the Life Underwriter Training Council Fellow (LUTCF) designation, the Chartered Property and Casualty Underwriter(CPCU) designation, and the Chartered Life Underwriter (CLU) certification.
Requirements for certification or designation vary and often include coursework or exams or both. Some credentials are available to new underwriters, but others require candidates to have a specified number of years of experience.
Advancement
Experienced underwriters may advance to become senior underwriters or underwriter managers. Underwriters may need certification to progress into these positions.
Important Qualities
***Analytical skills.*** Underwriters must evaluate information from a variety of sources to balance risk against caution.
***Decision-making skills.*** Underwriters determine whether to approve applicants for insurance coverage and, if approved, at what level to set premiums.
***Detail oriented.*** Underwriters must stay focused when reviewing insurance applications because each item may affect the coverage decision.
***Interpersonal skills.*** Underwriters need to communicate and relate well with people because much of their work involves dealing with clients or others, such as insurance sales agents.
***Math skills.*** Underwriters need math knowledge to ensure accuracy in determining the probability of losses and calculating appropriate premiums on an insurance policy.
 Pay

			



	
 
                                                     
            
    
                Insurance UnderwritersMedian annual wages, May 2023Financial specialists$80,090  Insurance underwriters$77,860  Total, all occupations$48,060Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics
 

	
	



		
	
	
	
The median annual wage for insurance underwriters was $77,860 in May 2023. 


The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $48,480, and the highest 10 percent earned more than $132,010.





		
	    					 In May 2023, the median annual wages for insurance underwriters in the top industries in which they worked were as follows:	
        Credit intermediation and related activities
                $89,700Other insurance related activities
                80,090Direct health and medical insurance carriers
                78,530Direct insurance (except life, health, and medical) carriers
                77,680Insurance agencies and brokerages
                76,530Most underwriters work full time.
 Job Outlook

   
        
    
          
        
    
                Insurance UnderwritersPercent change in employment, projected 2022-32Financial specialists5%  Total, all occupations3%  Insurance underwriters-2%Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Employment Projections program
            
            
			 
	
	
	

			Employment				of insurance underwriters is projected to decline				 2 percent from 2022 to 2032.
			
			Despite declining  employment, about 8,200 openings for insurance underwriters are projected each year, on average, over the decade.
			
			 All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.
			Employment
	
			
Automated underwriting software allows workers to process applications quickly, reducing the need for underwriters. As this technology continues to improve and become more widely adopted in the insurance industry, more underwriting decisions are expected to be made automatically.
However, there still will be a need for underwriters to review and update the criteria that run the automation. In addition, their analytical insight will be needed in specific fields, such as workers’ compensation, marine insurance, and health insurance.
			

                        Employment projections data for     insurance underwriters, 2022-32
                Occupational Title
                        SOC Code
                        Employment, 2022
                        Projected Employment, 2032
                        Change, 2022-32
                        Employment by IndustryPercent
                        NumericSOURCE: U.S. Bureau of Labor Statistics, Employment Projections program**Insurance underwriters**
			13-2053
			125,500
			122,400
			-2
			-3,000
			Get data
 State & Area Data **Occupational Employment and Wage Statistics (OEWS)** The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OES data maps for employment and wages by state and area. Insurance underwriters **Projections Central** Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.com. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved. **CareerOneStop** CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.
 Similar Occupations This table shows a list of occupations with job duties that are similar to those of insurance underwriters. Occupation
                Job Duties
                ENTRY-LEVEL EDUCATION
                2023     MEDIAN PAY**Actuaries**
            Actuaries use mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty.
            Bachelor's degree
            $120,000**Budget Analysts**
            Budget analysts help public and private organizations plan their finances.
            Bachelor's degree
            $84,940**Claims Adjusters, Appraisers, Examiners, and Investigators**
            Claims adjusters, appraisers, examiners, and investigators evaluate insurance claims.
            See How to Become One
            $75,020**Cost Estimators**
            Cost estimators collect and analyze data in order to assess the time, money, materials, and labor required to make a product or provide a service.
            Bachelor's degree
            $74,740**Insurance Sales Agents**
            Insurance sales agents contact potential customers and sell one or more types of insurance.
            High school diploma or equivalent
            $59,080**Loan Officers**
            Loan officers evaluate, authorize, or recommend approval of loan applications.
            Bachelor's degree
            $69,990
 Contacts for More Information
								
For more information about property and casualty insurance, visit
Insurance Information Institute (III)
For more information about certifications, visit
The Institutes
The American College of Financial Services
National Association of Insurance and Financial Advisors (NAIFA)

                                                
                                                        
                                                                                                    O*NET
                                        Insurance Underwriters
 Suggested citation: Bureau of Labor Statistics, U.S.  Department of Labor, Occupational Outlook Handbook, Insurance Underwriters, 
        	 at https://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htm (visited *May 21, 2024*).
 **Last Modified Date:**
                        Wednesday, April 17, 2024


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