How Much Do Underwriters Make? All Solved!
According to 75 salaries, the average total compensation for an entry-level Insurance Underwriter is $52,088 (which includes tips, bonus, and overtime pay). Based on 384 salaries, the average total pay for an Insurance Underwriter in their first professional year with 1-4 years of experience is $57,196. Based on 286 salaries, the average total compensation for a mid-career Insurance Underwriter with 5 to 9 years’ experience is $63,059 per year. Based on 205 salaries, an experienced Insurance Underwriter makes an average total compensation of $67,427. Employees make an average total compensation of $77,199 in their late careers (20 years and over).
What Do Insurance Underwriters Do?
A business or other entity should be insured, according to an insurance underwriter, who also assists in risk assessment, cost and premium analysis. Underwriters of insurance typically work for insurance companies and need to be proficient in accounting and statistical analysis.
The underwriter may be asked to evaluate insurance company policy choices that fall outside the purview or competence of field agents. Following a risk assessment, they decide whether to accept, reject, or modify potential policy applications. In addition, the majority of businesses want their underwriters to find new potential clients who fit the insurer’s risk analysis scenario. As such, underwriters must be able to not only think analytically, but also be able to find possible new opportunities for their organization.
In particular after a settlement, insurance underwriters may be requested to review current situations and policies. The decision to modify, continue, or decline additional coverage must be made by the underwriter after determining whether a new risk is applicable.
A bachelor’s degree in finance or accounting is typically required for this position. Additional company- or field-specific training and certification may also be necessary. Only after a person has gained experience in the industry as an associate underwriter do many companies choose to hire insurance underwriters.
Salary Expectations for Insurance Underwriters
The median annual salary for insurance underwriters was $76,390 in May 2021, according to the Bureau of Labor Statistics (BLS). The highest 10% earned as much as $126,380 while the lowest 10% in the field earned a maximum of $47,330.4
The BLS categorizes the median annual salary based on the top industries for insurance underwriters:
- Credit Intermediation: $78,060
- Direct Health and Medical Insurance: $77,290
- Insurance Agencies/Brokerages:$76,450
- Direct Insurance (except life, health, and medical):$76,040
- Other Insurance Activities:$62,3204
In addition to providing excellent group life and health insurance and retirement plans, insurance companies may also offer above-average benefits. They might also provide tuition reimbursement in addition to salary incentives.
FAQs About Insurance Underwriters
What is the Highest Pay for Insurance Underwriters?
Our data indicates that the highest pay for an Insurance Underwriter is $87k / year
What is the Lowest Pay for Insurance Underwriters?
Our data indicates that the lowest pay for an Insurance Underwriter is $44k / year
How Can Insurance Underwriters Increase Their Salary?
It is possible to increase your pay as an insurance underwriter in a variety of ways. Employer switch: Take into account a career change to a new company that will pay more for your skills. Education Level: This position may be able to earn more money and be promoted if they obtain advanced degrees. Managing Experience: If you have management experience as an insurance underwriter and you supervise less senior underwriters, your chances of earning more money are increased.
Summary: How Much Do Underwriters Make?
It is quite common to try out a number of potential career opportunities because finding where you fit in the working world is not always a linear process. But if you’re a detail-oriented, analytical person who likes to put the pieces together to solve a problem, then insurance underwriting could be a good career fit for you.