If you want to become an underwriter with no experience, the first thing you should do is check out the educational requirements for underwriters.
Underwriters usually have a bachelor’s degree in business administration or a related field, such as finance or marketing. If you don’t have these degrees but are committed to becoming an underwriter, you can get a degree online from sites like Udemy or Coursera. You can also learn about insurance through online courses offered by companies like Liberty Mutual and State Farm.
After earning your degree or completing these courses, it’s important that you get good grades on your transcript from college or in the classes you took online. A good grade average will help you get noticed by potential employers when applying for jobs as an underwriter without any experience.
The next step is to find a job as an underwriter without any experience. You may be able to find one at a local insurance agency or brokerage firm; however, if not then consider working as an intern at one of these companies instead until they hire someone full-time with more experience than what they need right now (which would be someone like you!). It’s important that these companies know how hard-working and dedicated.
How To Become An Underwriter With No Experience
Researching the job of an underwriter could help determine whether or not it is a career path you’d like to follow. Knowing your options can provide you with the clarity and knowledge that you will need to take the next step in your job search. In this article, we explain what an underwriter is, the skill requirements for underwriters to be successful and the six steps to follow to start and advance your career.
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What is an underwriter?
An underwriter is someone who works in the insurance, finance and healthcare industries, running risk assessments on insurance applicants to determine a client’s eligibility for coverage. They serve as the midway point between insurance companies and agencies to ensure that the company policies are being upheld at every level. Underwriters are responsible for reviewing the information on insurance applications, identifying potential risk factors that the client may present and comparing this information to what an insurance company deems acceptable for approval before finally determining whether or not the applicant will receive coverage.
Related: Learn About Being an Underwriter
Requirements for underwriters
The requirements to become a successful underwriter entail more than education alone. An underwriter must have the necessary qualifications to fulfill their job responsibilities. The following skills are desired for this profession:
Advanced computer knowledge
To be an underwriter, you need extensive knowledge in computer software and to be comfortable working with spreadsheet data. Underwriters might also be tasked with completing risk assessments and other documentation in an online program.
Analytic thinking
An underwriter needs to be able to think analytically to interpret data. They must be experienced in examining the types of data they are presented with and measuring it against the insurance company’s standards.
Verbal communication
An underwriter should be able to effectively communicate with insurance companies and sales agents regarding a client’s eligibility. A large part of an underwriter’s job is to consult with industry professionals to come to a conclusion about a particular applicant.
Critical decision-making
The job of an underwriter requires making challenging decisions about insurance applicants. They have to consider the risks that a potential client presents to an insurance company, which sometimes means denying an applicant coverage. Underwriters have to be able to make the decision that is right for the company.
Ability to complete redundant tasks
As this profession requires receiving, analyzing and entering client data, an underwriter must be able to complete these tasks without error and repeatedly for each applicant they review.
Attention to detail
In conjunction with mundane tasks, an underwriter must pay close attention to the data they are analyzing, and must be able to identify and correct errors on client documentation.
Ability to travel
An underwriter might receive an insurance application for a piece of property. In this case, it is their responsibility to travel to its location and conduct a risk assessment on-site. Travel could be an important part of this role.
Related: 5 Examples of Critical Thinking Skills
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How to become an underwriter
To become an insurance underwriter, you have to complete the necessary education and training requirements. Once you have started your career and gained more insights into the industry, there are additional opportunities for career advancement.
You can specialize in subcategories of the industry by earning underwriter certifications. These certifications make you eligible for promotion opportunities. Below are the required steps to start and advance your underwriting career:
- Earn a bachelor’s degree.
- Obtain an entry-level position.
- Complete on-site training.
- Determine career goals.
- Earn certification(s).
- Apply for advanced positions.
1. Earn a bachelor’s degree
The first step to becoming an insurance underwriter is to earn your bachelor’s degree. There is not a formal underwriting degree program but individuals looking to pursue a career in underwriting usually pursue a Bachelor’s Degree in Business, Economics, Mathematics, Statistics, Finance or Accounting.
2. Obtain an entry-level position
After receiving your bachelor’s degree in a related field, you can begin applying for entry-level positions. You can find underwriter jobs in multiple settings, including brokerage firms, insurance companies, corporations and credit intermediation. To determine which work environment offers you the best opportunities, take the time to research your potential employers, their company values and pathways to career advancement.
3. Complete training
Once you obtain an underwriter position, you will likely undergo extensive training as part of your onboarding process. As your formal education will give you a baseline set of skills, this training period is directed toward helping you apply those skills to the insurance industry. With the guidance of a senior underwriter, you can acclimate to more responsibilities until you are trusted to complete your job requirements unsupervised.
4. Determine career goals
Once you have devoted the necessary amount of time to learn the responsibilities of an underwriter, you can begin thinking about your goals in the industry. There are multiple sectors of insurance that you can specialize in by acquiring the right certification, and if you plan on applying for promotion opportunities, you need to have one or more certifications to do so.
Related: SMART Goals: Definition and Examples
5. Earn certification(s)
Certifications help demonstrate your expertise as an underwriter. They are also the way to advance your career beyond entry-level positions. By acquiring one or more of these credentials, you are demonstrating your dedication to the industry.
National Association of Insurance and Financial Advisors (NAIFA)
This organization offers multiple certifications for financial professionals. The Life Underwriter Training Fellow (LUTCF) offers underwriters who are currently in entry-level positions the opportunity to gain more in-depth experience in addition to their company training.
The American College of Financial Services
The American College of Financial Services offers a certification specific to underwriting. Chartered Life Underwriters (CLU) contains eight courses pertaining to life insurance policies and procedures.
The Institutes
This organization offers a large variety of certifications for underwriters at each level of expertise, including Associate in Insurance Services (AIS), Associate in Insurance Data Analytics (AIDA), Associate in Claims (AIC), Associate in Risk Management (ARM) and Chartered Property Casualty Underwriter (CPCU).
6. Apply for advanced positions
After earning the desired certifications, you can start searching for advanced positions within your company or look for external opportunities. You might be surprised by how many job titles are available within the underwriting profession.
As mentioned, underwriters are needed in specialty areas such as mortgage, life, auto and health insurance sectors, with an associate underwriter, underwriter manager and senior underwriter positions needed in each of the above-mentioned specialties. The diverse nature of the insurance industry can provide you with ample growth opportunities to elevate your career.
