This behind-the-scenes role is vital in insurance and finance, where underwriters assess whether to approve applications and what terms to offer.
What qualifications do you need to become an underwriter?
Most underwriting roles require at least 5 GCSEs and A-levels, especially in subjects like maths, economics or business. While a degree is not always necessary, having one in finance, economics or law is beneficial. You can also take industry-specific qualifications such as those offered by the Chartered Insurance Institute (CII).
Some professionals move into underwriting from related roles such as claims assessment, credit control, or financial analysis. Others join graduate schemes in large insurance or banking firms.
What industries hire underwriters?
Underwriters work in sectors including insurance, banking and finance. The role involves evaluating risk, determining premiums or interest rates, and ensuring policies meet guidelines. As more businesses rely on data, underwriters increasingly use software tools and risk models to guide their decisions.
What does an underwriter actually do?
Underwriters analyse applications for financial products like loans or insurance policies. They assess the risk of each application and decide whether it should be accepted, and under what terms.
Key skills include:
- Strong attention to detail
- Analytical thinking
- Decision-making ability
An underwriter will make the key decisions of whether someone is offered a loan, mortgage or insurance policy and what level, rate or price they are offered, managing and understanding the risks involved. It will be the underwriting who could manually make the final decision on a particular customer or case or they might set up all the processes that decide the eligibility for thousands of customers.
An underwriter’s time can be spent looking through individual applications, making sure that they meet the loan criteria, going back and asking the customer for more information or creating sets of rules that determine whether a person gets approved or not.
What is the average salary for an underwriter?
Entry-level underwriters typically earn between £24,000 and £30,000. With experience, salaries rise to £40,000-£60,000. Senior roles, especially in London or in specialised fields, can go beyond £70,000.
As of 2023, insurance underwriters made up a key part of the UK's financial services sector, which contributed over £164 billion to the economy, according to City of London data. There are currently over 18,000 underwriters employed in the UK.
Is underwriting a good long-term career?
Yes. It offers stability, career progression, and opportunities across various industries. It suits individuals who enjoy problem-solving, finance, and working behind the scenes to manage risk.
