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What Is an Insurance Underwriters Certificate?

An insurance underwriter certificate prepares underwriters with the required knowledge to calculate policy risk and determine the appropriate premium rates for insurance policies. This specialization in the insurance field determines the risk of taking on potential clients. Insurance companies go through the underwriting process to determine whether or not to assume the financial risk of insuring a corporation.

  1. Certificate

    • Underwriting certificate programs teach students how to set specific terms and evaluate risk for insurance contracts. Program participants learn important underwriter responsibilities, including identifying risks for policyholders and deciding on an insurance premium, as well as writing the actual policies that cover risk. Underwriters also undergo technical training in risk assessment software, which compares reports from vendors, loss control representatives and actuaries. One of the most important aspects of an underwriter's duties is determining a policy amount.

    Coursework

    • Insurance underwriter certificate programs are rare, and oftentimes, this skill is learned through a broader insurance or business certificate program. However, insurance underwriter certificates consist of one to 10 courses and may often be completed online. The only prerequisite is a high school diploma or GED, unless offered through an undergraduate degree. Common program coursework includes risk management, risk factors, business evaluation, contracts and insurance policies.

    Designation and Continuing Education

    • Underwriters may also choose to obtain designation in an advanced specialized area offered by the Insurance Institute of America. An underwriter may be designated as an Associate in Commercial Underwriting (ACU) or as an Associate in Personal Insurance (API). To earn such designations, underwriters must pass a series of exams that can take up to two years to complete.

    Employment Outlook

    • According to the U.S. Bureau of Labor Statistics (BLS), the employment rate for underwriters is expected to decrease by 4 percent from 2008 to 2018, so the job outlook is negative for this career. The decline in employment for this profession is reported to be a main result of technology and computer software systems replacing underwriter duties. The BLS also reported the median annual wage for underwriters was $56,790 in May 2008, with the lowest-paid 10 percent earning less than $35,010 and the highest-paid 10 percent earning more than $99,940.

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