Underwriting managers are in charge of ensuring that an insurance company’s underwriters follow the company’s risk acceptance guidelines. They could also help shape the company’s underwriting guidelines and monitor their effectiveness. To work as an underwriting manager, you typically need a four-year degree, industry certifications, and several years of underwriting experience. Many employers look for supervisory or team leadership experience as well.
Underwriting managers typically have degrees in risk management, finance, or business, though degrees in accounting and marketing are also common. Most graduates begin their careers as underwriting trainees before becoming underwriting managers. Typically, the trainee spends a year or two learning the industry and the company’s underwriting standards.
During this time, the trainee may begin to earn an industry designation, which may improve his or her chances of becoming an underwriting manager later on. The chartered property casualty underwriter is the most common industry designation (CPCU). To work as an underwriting manager, many life and health insurance companies require a chartered life underwriter (CLU) designation. An underwriter can earn designations such as the CPCU or CLU after several years of study and examinations.
After graduating from trainee status, an underwriter will most likely work as a full-fledged underwriter for several years. Before focusing on a specific, specialized line of coverage, an underwriter will typically learn the industry standards for a wide range of products. Homeowners, workers’ compensation, professional liability, commercial property, life, and disability insurance are just a few of the coverage options. Most underwriting managers are knowledgeable about a wide range of products and specialties, though there is usually little overlap between property and casualty and life and health insurance.
To become an underwriting manager, many companies prefer candidates with supervisory experience. Leading a team of other underwriters, trainees, or account managers can help underwriters gain this experience. Account retention, premium-to-loss ratio, and new business acquisition are all metrics that a company will use to assess an underwriting supervisor’s effectiveness.
To work as an underwriting manager, you’ll need to be able to build relationships with clients, vendors, and brokers. Furthermore, an underwriting manager must be able to successfully balance the needs and goals of all of those parties while developing a profitable and acceptable loss ratio book of business. To become an underwriting manager, you usually need at least six years of experience in the field.