Insurance underwriters assess risks and decide whether to offer insurance cover. They calculate prices for insurance premiums, making sure that they are priced competitively for the customer but high enough for the insurance company to be able to pay out claims, cover costs and make a profit.

Underwriters usually specialise in either life assurance or general insurance (which includes household, motor or commercial insurance). Their work will vary according to the type of insurance they work in, but typical tasks include:

• studying insurance proposals and gathering background information, such as medical history
• analysing statistics and information from actuaries and other sources, to assess risk and decide how much to charge for insurance premiums
• deciding whether some of the risk should be shared with another insurer (known as ‘re-insurance’)
• visiting brokers or potential customers to prepare quotes and negotiate terms
• getting advice on risk assessment from specialists, such as surveyors or doctors
• deciding if special conditions should apply to policies, for example asking that householders install burglar alarms
• drawing up contracts with brokers
• writing policies.

Hours and Environment

The normal working hours are 9am to 5pm, Monday to Friday.

Underwriters are mainly office-based, but also travel to attend meetings with insurance brokers or business clients. They work as part of a team with insurance technicians and other professionals, such as actuaries.

Skills and Interests

To be an insurance underwriter you should:

• have excellent spoken and written communication skills
• be able to analyse statistics and other information
• be confident when making decisions
• pay a high degree of attention to detail
• be able to think creatively and have problem-solving skills  
• have negotiation skills
• have good numeracy and computer skills
• respect confidential information.

Entry

You do not need specific qualifications to become an insurance underwriter, as entry requirements will differ from company to company. Some firms may prefer you to have two A levels/three Highers or equivalent qualifications, plus at least four GCSEs (A-C)/S grades (1-3) including English and maths. Employers may also prefer trainee underwriters to have at least six months’ relevant work experience in finance or insurance.

Some larger insurance firms run graduate training schemes for new entrants. You will usually need a good degree (class 2:1 or above) in a numerate subject like business, management, accounting, economics or mathematics, although companies might consider other degree subjects if you have A level/H grade maths.

To enter a degree you will usually need at least five GCSEs (A-C)/S grades (1-3) plus two A levels/three Highers or equivalent qualifications.  An Access to Higher Education qualification may be accepted for entry to certain courses. Please check with colleges or universities for exact entry requirements.

For medical underwriting, you will find it useful to have some knowledge of biology, physiology or health care. Some medical underwriters are qualified nurses or doctors, although this is not essential.

You could enter the industry as a trainee insurance technician, usually with some GCSEs/S grades (A-C/1-3) or equivalent. You could then progress to underwriter after gaining more experience and insurance industry qualifications (see the Training section).

If you are aged between 16 and 24 you may be able to enter the insurance industry through an apprenticeship scheme. In England these are currently Apprenticeships (level 2) and Advanced Apprenticeships (level 3). To find out more, visit www.apprenticeships.org.uk. Apprenticeships may be different in other areas. For further information see Scotland , Wales and Northern Ireland.

Training

You will usually be trained on the job, through a mixture of formal in-house training courses and learning from experienced underwriters. You may spend up to two years learning about various types of insurance and claims, followed by up two or three years’ further training in a specialist area of risk.

Your training will also usually include study for qualifications from the Chartered Insurance Institute (CII), such as:

• Certificate in Insurance
• Diploma in Insurance
• Advanced Diploma in Insurance, which leads to Associateship of the CII (ACII).

Reaching ACII level usually takes around three years, and should help your chances of promotion to senior or management roles. You can study flexibly for CII qualifications at colleges, private training centres, or by distance learning. Please see the CII’s website for more information about courses.

If you work for a Lloyd’s broker or agent, or deal with the London Insurance Market, you should pass the Lloyd’s and London Market Introductory Test (LLMIT). See the Lloyd’s website for more information about the London Insurance Market, and the CII website for more details about the LLMIT.

Insurance underwriters must meet the Financial Services Authority’s training and competence standards. See the Financial Services Skills Council (FSSC) website for a full list of appropriate qualifications for all sectors of the financial services industry.

Opportunities

Promotion is usually to more responsible underwriting posts, dealing with more complex or greater risks. There may be opportunities to move into management, other branches of insurance, or to run a department or Lloyd’s company. Specialist knowledge of areas such as fire, motor or aviation insurance can improve promotion prospects.

For further details of skills shortages and approved qualifications, contact the Financial Services Skills Council.

Annual Income

Figures are intended as a guideline only. Salaries are depend on length of experience, location and the type of insurance business. For example, salaries are usually higher in complex areas like commercial risk and liability insurance.

New entrants to the insurance industry may start on between £12,000 and £15,000 a year.
Underwriters with two to three years' experience are likely to earn £18,000 to £25,000.
With five years’ experience, underwriters can earn £20,000 to £35,000.
ACII-qualified underwriters with specialist knowledge earn £30,000 to £40,000 or more.
Lloyd’s underwriters can earn over £100,000 a year.

There may be extra payments based on personal or company performance.

Further information

25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: 020 7066 1000 One Lime Street
London
EC3M 7HA
Tel: 020 7327 1000 20 Aldermanbury
London
EC2V 7HY
Tel: 020 8989 8464