Insurance Underwriter Salary

By Henry R. Steele - January 8, 2018
Reading Time: 9 minutes

The following article discusses the career path of Insurance Underwriter. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Insurance Underwriters.

Job Duties

Insurance underwriters are specialists who help clients assess their risks. They then use this assessment to determine insurance premiums and payments. Based on this, they will determine whether or not insurance can be provided. Usually, they are employed directly by an insurance company for their strong statistics analysis and accounting skills.

An underwriter will often have to review policy decisions within the company, particularly if these decisions are too complex for the field agents. They determine the risks and based on that, reject, accept, or change policy applications as appropriate. Furthermore, insurance underwriters help to grow an insurance company’s business by finding new clients. This means that they conduct analyses in order to find new opportunities.

Last but not least, insurance underwriters may need to determine whether existing situations and policies are adhered to, particularly after a claim has been made. Based on their findings, they will recommend whether a policy will continue as is, or whether it will have to be changed of modified.

Other job duties include:

  • Analyzing renewals and new businesses, claim history, data, outcome liability, and loss experience
  • Underwriting, approving, submitting, or pending premiums and coverage amounts, and communicating with management about those decisions
  • Checking existing policies, making sure they are fully compliant with internal guidelines, policies, and procedures
  • Finding new businesses and clients based on profitability analyses

Where We Work

According to the U.S. Bureau of Labor Statistics, there were 104,100 insurance underwriters in 2016. The largest employers of these professionals were:

  • Direct insurance (except life, health, and medical) carriers: 47%
  • Insurance agencies and brokerages: 19%
  • Other insurance related activities: 6%
  • Direct health and medical insurance carriers: 5%
  • Credit intermediation and related activities: 4%

How to Become

Generally, a bachelor’s degree is required as a minimum for someone to become an insurance underwriter, preferably with a major in accounting or finance. Furthermore, they may also have to obtain further field or company-specific training and certification. Work experience is also very important, and many insurance underwriters start their career as an associate first.

Education Requirements

Typically, a bachelor’s degree is required as a minimum, with an unspecified major. Completing courses in mathematics, economics, finance, and business is often recommended. Usually, insurance underwriters will start as an associate, assisting an established underwriter. During this time, they learn about basic applications and common risk factors. The more experienced they get, the more they can work independently and the more complex their work becomes.

Insurance underwriters often get sponsored to become certified as well. This coursework is designed to ensure they remain up to date with new policies and with new technology. Furthermore, it keeps their knowledge accurate in terms of local, state, and federal regulations. There are many different certification options to choose from, including the:

  • Chartered Property and Casualty Underwriter (CPCU) offered by the American Institute for Chartered Property Casualty Underwriters for those with two years experience
  • Associate in Commercial Underwriting (AU), offered by the Insurance Institute of America (IIA)
  • Associate in Personal Insurance (API), offered by the IIA
  • The Life Underwriter Training Council Fellow (LUTCF), offered by the National Association of Insurance and Financial Advisors
  • The Chartered Life Underwriter (CLU), offered by the American College of Financial Services, to those with at least three years’ experience

Traits & Qualities

The most effective have the following traits to some degree or other:

  • Strong analytical skills
  • Excellent decision-making skills
  • Detail oriented
  • Good interpersonal skills
  • Excellent mathematical skills

Minimum Education

Bachelor’s Degree

National Salary

The national average salary estimate for Insurance Underwriter was $77,694. This number is estimated from over 239,624 employees, users past and present job advertisements from Indeed.com. This equates to an hourly salary of $40.47 and monthly of $6,475.

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$15,000

$190,000

Salary Distribution

Salary by State

The following section lists Insurance Underwriter salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, Delaware had the largest quoted salary of $101,239 while Hawaii had the smallest quoted salary of $33,600.

Arizona Kansas New Jersey
California Kentucky New York
Colorado Louisiana Ohio
Connecticut Massachusetts Oklahoma
Delaware Maryland Oregon
Florida Minnesota Pennsylvania
Georgia Missouri Tennessee
Hawaii Montana Texas
Iowa North Carolina Virginia
Illinois Nebraska Washington
Indiana New Hampshire Wisconsin
Arizona$65,109 Rank: 21st

The average salary ranks 21st among states in the country. There were also job openings from employers like McAfee Craig Agency, Liberty Mutual, Examination Management Services, Inc., and Diedre Moire.

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$16,000

$148,000

Salary Distribution
California$93,537 Rank: 2nd

The average salary ranks 2nd among states in the country. There were also job openings from employers like Liberty Mutual, Pacific Recruiting, Criterion Executive Search, and AllSearch Professional Staffing.

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$17,000

$232,000

Salary Distribution
Colorado$73,701 Rank: 15th

The average salary ranks 15th among states in the country. There were also job openings from employers like Network. Englewood, Liberty Mutual, Criterion Executive Search, and Aerotek.

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$20,000

$160,000

Salary Distribution
Connecticut$81,136 Rank: 11th

The average salary ranks 11th among states in the country. There were also job openings from employers like Liberty Mutual, Diedre Moire, and Crossroads Consulting.

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$26,000

$167,000

Salary Distribution
Delaware$101,239 Rank: 1st

The average salary ranks 1st among states in the country. There were also job openings from employers like Lincoln Heritage Life Insurance Company.

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$51,000

$154,000

Salary Distribution
Florida$56,552 Rank: 27th

The average salary ranks 27th among states in the country. There were also job openings from employers like Diedre Moire, Criterion Executive Search, Zwirz & Company, PA, and MetLife.

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$14,000

$143,000

Salary Distribution
Georgia$84,331 Rank: 7th

The average salary ranks 7th among states in the country. There were also job openings from employers like LaMorte Search, Criterion Executive Search, Liberty Mutual, and Examination Management Services, Inc..

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$18,000

$198,000

Salary Distribution
Hawaii$33,600 Rank: 33rd

The average salary ranks 33rd among states in the country. There were also job openings from employers like Express Employment Professionals.

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$8.75

$26.25

Salary Distribution
Iowa$84,807 Rank: 6th

The average salary ranks 6th among states in the country. There were also job openings from employers like Management Recruiters of Cedar Rapids and Examination Management Services, Inc..

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$14,000

$240,000

Salary Distribution
Illinois$82,774 Rank: 9th

The average salary ranks 9th among states in the country. There were also job openings from employers like LaMorte Search, Liberty Mutual, All About People, and JobGiraffe.

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$18,000

$193,000

Salary Distribution
Indiana$81,213 Rank: 10th

The average salary ranks 10th among states in the country. There were also job openings from employers like Liberty Mutual and Diedre Moire.

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$16,000

$198,000

Salary Distribution
Kansas$36,998 Rank: 31st

The average salary ranks 31st among states in the country. There were also job openings from employers like MOUNTAIN, LTD..

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$9.65

$29.10

Salary Distribution
Kentucky$70,846 Rank: 18th

The average salary ranks 18th among states in the country. There were also job openings from employers like Liberty Mutual.

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$19,000

$154,000

Salary Distribution
Louisiana$44,885 Rank: 29th

The average salary ranks 29th among states in the country. There were also job openings from employers like Liberty Mutual and Snelling.

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$19,000

$80,000

Salary Distribution
Massachusetts$88,802 Rank: 3rd

The average salary ranks 3rd among states in the country. There were also job openings from employers like Liberty Mutual, Examination Management Services, Inc., and Diedre Moire.

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$18,000

$215,000

Salary Distribution
Maryland$72,931 Rank: 17th

The average salary ranks 17th among states in the country. There were also job openings from employers like Criterion Executive Search, Liberty Mutual, STATE DEPARTMENT OF HOUSING, and Diedre Moire.

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$17,000

$168,000

Salary Distribution
Minnesota$75,176 Rank: 13th

The average salary ranks 13th among states in the country. There were also job openings from employers like Liberty Mutual and Katapult Network.

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$22,000

$159,000

Salary Distribution
Missouri$60,384 Rank: 26th

The average salary ranks 26th among states in the country. There were also job openings from employers like Liberty Mutual, Examination Management Services, Inc., and Quest Diagnostics.

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$14,000

$143,000

Salary Distribution
Montana$37,094 Rank: 30th

The average salary ranks 30th among states in the country. There were also job openings from employers like Mountain, Ltd and System One.

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$9.40

$32.65

Salary Distribution
North Carolina$65,893 Rank: 20th

The average salary ranks 20th among states in the country. There were also job openings from employers like LaMorte Search, Liberty Mutual, Criterion Executive Search, and TimberSure.

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$15,000

$151,000

Salary Distribution
Nebraska$35,059 Rank: 32nd

The average salary ranks 32nd among states in the country. There were also job openings from employers like Cornerstone Staffing Inc., Examination Management Services, Inc., and Neff Enterprises.

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$9.20

$30.30

Salary Distribution
New Hampshire$73,632 Rank: 16th

The average salary ranks 16th among states in the country. There were also job openings from employers like Liberty Mutual and Diedre Moire.

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$16,000

$172,000

Salary Distribution
New Jersey$73,725 Rank: 14th

The average salary ranks 14th among states in the country. There were also job openings from employers like Diedre Moire and Liberty Mutual.

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$18,000

$167,000

Salary Distribution
New York$85,791 Rank: 5th

The average salary ranks 5th among states in the country. There were also job openings from employers like Liberty Mutual, Godot CG, AllSure Insurance Brokerage, and International Underwriting Agency, Inc.

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$16,000

$211,000

Salary Distribution
Ohio$60,842 Rank: 25th

The average salary ranks 25th among states in the country. There were also job openings from employers like Liberty Mutual and Godot CG.

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$17,000

$130,000

Salary Distribution
Oklahoma$61,344 Rank: 24th

The average salary ranks 24th among states in the country. There were also job openings from employers like Diedre Moire and Liberty Mutual.

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$15,000

$138,000

Salary Distribution
Oregon$64,391 Rank: 22nd

The average salary ranks 22nd among states in the country. There were also job openings from employers like Liberty Mutual, Opti Staffing Group, and Diedre Moire.

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$16,000

$145,000

Salary Distribution
Pennsylvania$77,752 Rank: 12th

The average salary ranks 12th among states in the country. There were also job openings from employers like Liberty Mutual, Diedre Moire, Criterion Executive Search, and E-solutionsinc..

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$15,000

$188,000

Salary Distribution
Tennessee$52,202 Rank: 28th

The average salary ranks 28th among states in the country. There were also job openings from employers like Liberty Mutual and Examination Management Services, Inc..

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$14,000

$119,000

Salary Distribution
Texas$83,426 Rank: 8th

The average salary ranks 8th among states in the country. There were also job openings from employers like Liberty Mutual, SNI Companies, McAfee Craig Agency, and Rainbow Personnel.

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$22,000

$184,000

Salary Distribution
Virginia$64,030 Rank: 23rd

The average salary ranks 23rd among states in the country. There were also job openings from employers like Examination Management Services, Inc. and Diedre Moire.

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$14,000

$175,000

Salary Distribution
Washington$87,067 Rank: 4th

The average salary ranks 4th among states in the country. There were also job openings from employers like LaMorte Search, Liberty Mutual, McAfee Craig Agency, and Integra Personnel Inc..

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$22,000

$195,000

Salary Distribution
Wisconsin$67,601 Rank: 19th

The average salary ranks 19th among states in the country. There were also job openings from employers like CyberCoders, Liberty Mutual, Examination Management Services, Inc., and Diedre Moire.

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$15,000

$156,000

Salary Distribution

Top 20 National Employers

According to Indeed.com, the following states had employers looking to hire a Insurance Underwriter. The quoted salary figure represents the average salary from all job postings by this employer.

Employer Name Location Average Salary

Learn More

Related Careers

Career Name Average Salary
Henry R. Steele
Henry R. Steele
Managing Editor
Henry is Managing Editor of BusinessStudent.com. He is a seasoned business professional who regularly consults with local business's throughout Southern California. Henry pursued his undergrad in Business and Economics at the University of San Diego and gained valuable life changing experience through a unique internship upon graduation.Follow on Twitter.com

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