Businesses and individual clients need to know the possible results of their business decisions or activities. Insurance companies provide services like this via their insurance underwriters. At the same time, insurance underwriters help determine the level of risk in providing insurance to certain clients.
In this guide, Insurance Business delves into the essential information about the insurance underwriter in Australia. We’ll discuss the qualifications, the role these professionals play in the industry and more.
Insurance underwriters are industry professionals responsible for the underwriting process. This is when the insurer:
Insurance underwriters can specialise in different lines or types of insurance such as property and casualty, commercial risks, life insurance, health insurance, and reinsurance. The overarching role of insurance underwriters is to create a balance between offering affordable premiums while ensuring their or their employer’s profitability.
Insurance underwriters can work for different clients or employers, including:
In this case, underwriters can assess the risks related to personal lines like home, car, health, and life insurance. An insurance underwriter servicing individual clients can evaluate their risk factors and determine what coverage is applicable and what cost of premiums is appropriate.
2. Business clients
Underwriters can also choose to evaluate risks for businesses. In most instances, businesses need underwriters to assess the risks related to employee benefits and commercial insurance. Those who service business clients may specialise in professional liability or P&C insurance.
Insurance underwriters can also work for underwriting agencies and work as third-party providers to insurance companies and clients. In this capacity, underwriters can work with several insurers to create a coverage package for insurance agents, brokers, or directly to insured clients.
Insurance underwriters are the gatekeepers for insurance companies. Their main roles are twofold:
First, they protect insurers from unnecessary financial losses by carefully sizing up the feasibility of providing coverage to potential clients.
Secondly, it’s their job to ensure that they can price premiums at levels that are both affordable for clients and profitable for the insurers. Their other essential roles include:
Australian insurance underwriters are responsible for evaluating and analysing the risks involved when insuring property or individuals. This process involves making a thorough assessment of a potential client’s risk level to gauge whether providing coverage is financially viable.
Underwriters collect information on potential clients when they apply for coverage. They gather data, including the type of business, industry, location, and claims history, to know the level of risk involved. Then based on their findings, underwriters proceed with the next step – deciding on whether to offer insurance and in what terms.
After the extensive assessment, underwriters must determine the terms of the coverage and set the rates on their premiums. To insure risks, underwriters refer to a range of different metrics to pinpoint the terms and conditions of coverage, while keeping the level of risk and profit levels of insurers in mind.
Another important role of insurance underwriters is working with other insurance professionals like insurance brokers, insurance agents, actuaries, and risk managers. In this role, underwriters are crucial, especially for brokers.
If insurance brokers act as intermediaries between insurance companies and insureds, insurance underwriters act as intermediaries between brokers and insurance companies. They typically work closely with insurance brokers to offer comprehensive insurance solutions to their clients.
Note, however, that underwriters handle the risk assessment and term-setting side of the business, while brokers match clients with the best insurance packages possible. You can check out our guide on how to become an insurance broker in Australia if you feel that this career is a better fit.
4. Protecting insurance companies and maintaining profitability
This role is essential for insurers, since underwriters protect them from unnecessary financial losses.
Underwriters make decisions that help an insurance company cover claims and expenses.
By having underwriters implement sound underwriting strategies and investing in staff training, insurers can reduce the guesswork in their underwriting results. Underwriters are constantly pressured to attract new clients and retain existing ones, all the while helping insurers maintain profitability.
If you want to become an insurance underwriter, here's a step-by-step guide detailing the necessary skills and knowledge, applicable education and certifications, and work experience.
This is not a mandatory requirement, but having a university degree can substantially improve your employment opportunities. Obtain a bachelor’s degree in a related field like accounting, business, or finance, as there is no specific underwriting degree or course. These degrees can help you gain basic knowledge about insurance and get familiar with the many complexities and nuances of insurance.
A degree that deals with financial risk management is also highly recommended. If you are unable or unwilling to get a degree, some employers may consider equivalent experience in the financial, banking, or insurance sectors if you want to work as an insurance underwriter.
This credential can be essential to becoming an insurance underwriter, since it provides solid foundational knowledge about insurance and is a great way to begin your career as an underwriter.
You can get this credential from a reputable vocational education training (VET) course provider like Kaplan Professional, which offers a FNS41422 Certificate IV in General Insurance program. This course can train you for various customer service, insurance claims, administrative and underwriting roles.
You can obtain Tier 1 and Tier 2 insurance qualifications outlined in ASIC's RG 146, which represent different levels of training and knowledge required for providing financial advice. These qualifications are not mandatory, but as with university degrees, can help you launch your insurance underwriter career.
There are several skills you can learn and develop as you learn more about the essential roles and responsibilities of an insurance underwriter. These include:
analytical skills – this is essential for underwriters to accurately evaluate applicant risks and determine their eligibility
math skills – are crucial to accurately calculate premiums and make informed decisions
communication skills – you need to liaise with stakeholders and clients and effectively negotiate terms and contracts; this is also important for presenting policy decisions and guidelines
computer literacy – knowing how to use software for statistical analysis and underwriting can automate and speed up your tasks. With computer skills, you can harness AI to automate time-consuming tasks like claims processing and offer a more competitive and efficient service
technical skills – having technical skills and knowledge in insurance can equip you with a comprehensive understanding of relevant policies, procedures, and coverage approval criteria
attention to detail – being meticulous and having a keen eye for even the smallest details is a critical skill for successful underwriters
After obtaining your education and some helpful skills and credentials, you can apply for internships, on-the-job training programs or entry-level roles in insurance or underwriting agencies. Make sure to accumulate at least three years’ worth of work experience, which is typically required by prospective employers.
Once you’ve accumulated enough practical work experience in insurance, obtained a degree and the Certificate IV in General Insurance, you may apply for an underwriter role. Send your resume to online insurance job forums or apply in person. Be sure to highlight your relevant work experience to match company job requirements.
If you have accumulated a minimum of four years of underwriting experience, you can pursue the ANZIIF Executive Certificate in General Insurance Underwriting to specialise in underwriting. You may also earn the Associate in Commercial Underwriting (AU) if you wish to practice and enhance your knowledge in commercial underwriting.
Apart from earning additional designations, professional development has a social side to it. Attend industry conferences and events, join industry groups, and seek a mentor who can help you with your career goals.
The average salaries of insurance underwriters across Australia can range of between $105,000 and $125,000 a year, with entry-level underwriters earning about $141,209 per year. An underwriter’s salary can vary widely, depending on factors like their location, market conditions, and skills and experience level of the individual underwriter.
Australian insurance underwriter salaries in 2025
|
City or region |
Annual salary |
|---|---|
|
Melbourne |
$114,000 |
|
Sydney |
$110,000 |
|
Brisbane |
$98,749 |
|
Perth |
$90,000 |
|
Adelaide |
$85,000 |
|
Newcastle, Maitland & Hunter |
$75,000 |
Source: seek.com.au
As with most jobs or careers, there is no definitive yes or no answer to this question. Whether this is a career worth pursuing ultimately depends on the individual.
The job of an insurance underwriter suits professionals who are meticulous, detail-oriented, and analytical thinkers who enjoy being presented with problems and finding the best solutions. This role is not for the introverted, as you will have to deal with all sorts of people in the insurance industry.
Interpersonal and communication skills, along with technical knowledge are paramount for success in the field of underwriting. Evaluating and insuring risk, making tough decisions, and using software to analyse complex data comprise the bulk of the work.
Although the job typically calls for a 40-hour workweek in an office, there may be times when you will have to put in more hours. Since it is part of the competitive insurance and financial services sector, expect to occasionally work in the evenings and weekends.
Did you find this guide on becoming an insurance underwriter helpful for your career plans? Let us know in the comments
