The financial business employs a wide range of individuals who perform various tasks.
This industry employs bank tellers, insurance agents, financial consultants, and portfolio managers, to name a few.
But have you ever wondered who assesses the risk involved in credit and lending decisions? These people are known as underwriters.
But what education qualification you need to have to become an Underwriter? How much do they earn? We have covered it all!
And did you know according to Indeed, Underwriters who have risk management skills can +60.05% more than their average base salary.
If you want to learn more such things about this profession then keep reading!
Summary
| Guide | How Much Do Underwriters Make? |
|---|---|
| Average Income | $67,169 annually |
| Highest Income | $140,000 annually |
| Education Qualification | Bachelor’s degree |
| Training Programs | Required |
Who Are Underwriters?
An underwriter is a person who works in the insurance, finance, or healthcare industries and conducts risk assessments on insurance applicants in order to decide whether or not they are eligible for coverage.
They act as a go-between for insurance companies and agencies, ensuring that business policies are intact at all levels.
Underwriters are in charge of examining information on insurance applications, detecting any risk factors that the client could offer, and comparing that information to what an insurance company considers acceptable for approval before deciding whether or not the applicant will be covered.
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How Much Do Underwriters Make?
Underwriters often have regular office hours, but they may need to work evenings or weekends on occasion to fulfil deadlines, and this could affect your income.
The income of an underwriter is all about their experience and credentials.
The size, kind, and location of the company where they work may also have an impact on their pay. The average annual wage in the United States is $67,169.
1. How Much Do Underwriters Make An Hour?
Underwriters make a minimum of $9.62 an hour and a maximum of $51.92 an hour.
2. How Much Do Underwriters Make A Month?
Underwriters make a minimum of $1,667 a month and a maximum of $9,000 a month.
3. How Much Do Underwriters Make A Year?
Underwriters make a minimum of $20,000 a year and a maximum of $108,000 a year.
Highest Salary Of Underwriters In 2023
Underwriter salaries could go really high depending on where you are working and how experienced you are.
Overall, the top 10% of Underwriters earn $140,000 annually. Nearly double the average salary of all underwriters.
Is Being An Underwriter Good Or Bad?
In most cases, underwriters work in an office setting. Underwriters sit in front of a computer for long amounts of time, either inputting or analyzing data.
They may engage with agents on occasion, either in person, over the phone, or by email. Underwriters can also travel to meetings if they choose to.
It is rather a calm job with little to no travel. The salary is also good, so it all comes down to your liking.
If you like finance and want to work in a financial setting, being an underwriter could be a good job for you.
Pros and Cons of Being an Underwriter
Pros
- Good salary
- Job security
- High job satisfaction
- Future advancements
- Work-life balance
- Low risk of burnout
Cons
- Repetitive tasks
- Classic desk job
- Student loan might be an issue
How To Become An Underwriter?
Here are four easy steps that will help you in becoming an Underwriter:
- Get a degree. To work as an underwriter, you’ll almost always require a bachelor’s degree. Although there is no formal major in underwriting, other degrees like finance, accounting, mathematics, or business can help you find work.
- Hone your skills because an underwriter’s job entails conducting research and analyzing data, and any courses that teach computer and mathematical abilities are beneficial.
- Apply for Underwriter positions. Some places offer on-the-job training, too, which will help you immensely in gaining first-hand experience in the field.
- If you wish to further advance your career, then gaining some certificates will help.
How Many Hours Does An Underwriter Work?
Underwriting is a typical 9-5 job, and an Underwriter works for 40 hours a week.
The best part about this job is that you get enough time to spend with your family and friends and even the pay is good if you don’t mind working in a typical 9-5 desk job then this a good option.
What is the Starting Pay of an Underwriter?
An Underwriter at the start of his career earns $9.62 an hour or $1,667 a month. However, with time, you can easily make as much as $51.92 an hour or $9,000 a month.
Underwriters Training Programs
Training is usually necessary for entry-level underwriting positions with banks, credit unions, brokers, and other financial organizations.
An underwriter will understand the methods and procedures that the organization utilizes to evaluate applications through on-the-job training.
An underwriter will also learn how to use any special computer programs or software needed to fulfil duties.
Because loan requirements are always changing, an underwriter should keep up to date on state and federal regulations.
They can go to seminars or conferences to keep up with industry developments and learn more about the many components of underwriting.
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Conclusion
Being in the financial sector is always stressful, and there are many job opportunities with high salaries to compensate for this stress.
However, not everyone likes this stress, and not everyone can do it. But, those who can do it prefer different positions in the financial sector, and underwriters are one of them.
It pays well, and it is rather a calm profession when compared to other parts of the financial sector.
FAQ
How much do underwriters make when they are in training?
You earn your normal salary during your training because it is on-the-job training most of the time.
How much do underwriters make when they work extra hours?
This depends on your company as some pay overtime, and some don’t, but generally, it would double the amount of your hourly rate.
How much do underwriters make if they are a senior?
When you are a senior and experienced enough, you will most likely be in the top 10%.
Shefali Jain is a Content Writer & Editor at USWorkforce.org
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes. In her time at the organization, she has written and edited content on a range of topics, including employment law, human resources, and business management.
ARTICLE SOURCES
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- https://www.law.cornell.edu/wex/underwriter#:~:text=An%20underwriter%20is%20an%20institutional,and%20sells%20an%20issuer’s%20securities.[↩]
- https://www.ziprecruiter.com/g/Highest-Paying-Insurance-Underwriter-Jobs#:~:text=The%20majority%20of%20Conventional%20Underwriter,%24100%2C000%20(75th%20percentile)%20annually.[↩]
- https://www.bls.gov/ooh/business-and-financial/insurance-underwriters.htm#tab-4[↩]