Underwriting Certification and Certificate Programs

Underwriting is a specialization in the insurance field that determines the risk of taking on a potential client. Certificates are available that train students in skills necessary for success in the field. Although certification as an underwriter is not available, trained underwriters can receive professional designations in the field.

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Underwriting Certificate

Underwriting is the process by which insurance companies decide whether or not to assume the financial risk of insuring a corporation. Students in underwriting certificate programs learn how to evaluate risk and set specific terms for insurance contracts. Students also learn how to handle the most important responsibilities of an underwriter, including how to identify potential risk factors for policyholders, calculate risk, decide on an appropriate insurance premium and write the actual policies that cover risk.

Determining a policy amount is one of the most important aspects of an underwriter's duties. If a policy is estimated too conservatively, clients may take their business elsewhere. If a policy is written for too much, the insurance company may end up paying too much money in a claim. Underwriters also undergo moderate technical training in risk assessment software, which is used to compile and compare reports from physicians, vendors, loss control representatives and actuaries.

Certificates specifically in underwriting are rare, and many times, underwriting is a skill learned in a broader insurance or business certificate program. In either case, certificates consist of 1-10 courses and can often be completed online. Certificates in underwriting do not usually have prerequisites beyond a high school diploma or GED unless they are offered within undergraduate business degrees.

Program Coursework

Coursework often focuses on specific skills, like contract writing, business evaluation and negotiation. Most, if not all, of the coursework in this program takes place in the classroom. Here are some classes that might appear in the curriculum:

Risk management
Risk factors
Business evaluation
Contracts
Insurance policies

Employment Outlook and Salary Information

The U.S. Bureau of Labor Statistics (www.bls.gov) predicts that the employment rate for underwriters will decline four percent between 2008 and 2018. This decline is mostly due to gradual replacement of some of the duties of an underwriter to technology and computer software systems. Underwriters earned a median annual salary of $56,790 as of May, 2008. The lowest-paid underwriter earned less than $35,010, while the highest-paid made upwards of $99,940, according to the BLS.

Certification and Continuing Education

The Insurance Institute of America offers programs that equip students with advanced knowledge in specialized areas and result in designations (not certifications). For example, The Institute offers the designation of Associate in Commercial Underwriting (ACU) and an Associate in Personal Insurance (API). These designations are earned after completing a series of exams; the exams may take up to two years to complete.

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