What Does an Underwriter Do?
An underwriter evaluates the risk of insuring or approving individuals, businesses, or assets for coverage or credit. They analyze application data, credit histories, financial statements, and other relevant documentation to determine whether an applicant meets specific risk criteria. Their primary objective is to ensure that the organization issues policies or loans that are financially sound and within risk tolerance guidelines.
Working across various industries, including insurance, banking, and mortgage lending, underwriters play a crucial role in maintaining the financial health of an organization. They often work closely with brokers, agents, and loan officers to gather additional information and clarify policy details. The decisions they make impact profitability, compliance, and client satisfaction.
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Underwriter Core Responsibilities
- Review and assess insurance, loan, or mortgage applications for accuracy and completeness
- Analyze financial and risk-related data to determine approval or denial of coverage or credit
- Apply relevant underwriting guidelines, regulations, and industry best practices
- Collaborate with agents, brokers, and internal teams to gather additional information
- Calculate appropriate premiums, coverage limits, or interest rates based on risk factors
- Recommend policy changes, coverage levels, or terms based on evolving risk assessments
- Maintain thorough documentation of decisions and justifications in underwriting systems
- Stay current on industry trends, regulatory changes, and underwriting technologies
- Participate in audits and quality assurance activities to ensure consistent decision-making
Required Skills and Qualifications
Hard skills
- Risk analysis and financial evaluation
- Proficiency in underwriting software (e.g., DU, LP, or proprietary platforms)
- Knowledge of industry-specific guidelines (e.g., FHA, VA, or ISO)
- Strong understanding of actuarial or financial modeling principles
- Familiarity with relevant laws and regulations (e.g., lending laws, insurance codes)
Soft skills
- Strong critical thinking and decision-making skills
- Clear and effective communication
- Detail-oriented and highly organized
- Ability to balance analytical rigor with business goals
- Collaboration with cross-functional teams (e.g., sales, compliance, claims)
Educational requirements
Bachelor’s degree in finance, economics, business, accounting, or a related field
Certifications
- Chartered Property Casualty Underwriter (CPCU)
- Certified Mortgage Underwriter (for mortgage roles)
- Associate in Commercial Underwriting (AU)
- Life Underwriter Training Council Fellow (LUTCF)
Preferred Qualifications
- Experience with automated underwriting systems and risk assessment tools
- Knowledge of industry-specific underwriting regulations or insurer-specific guidelines
- Familiarity with machine learning or AI tools used in modern underwriting
- Multilingual communication skills (for global or multicultural client bases)
- Prior experience working in a fast-paced underwriting department
National Average Salary
Underwriter salaries vary by experience, industry, organization size, and geography. Click below to explore salaries by local market.
The average national salary for a Position is:
$123,456
Sample Underwriter Job Descriptions
When it comes to recruiting an underwriter, having the right job description can make a big difference. Here are some real world job descriptions you can use as templates for your next opening.
Example 1: Insurance Underwriter
Position overview
An insurance underwriter assesses risk and determines the terms under which insurance coverage is offered. They evaluate applications for property, casualty, liability, and other types of personal and commercial insurance policies. This role ensures that policies align with company guidelines while minimizing excessive risk to the organization.
Responsibilities
- Analyze insurance applications and supporting documentation
- Evaluate risk exposure based on applicant data, past claims, and industry factors
- Set appropriate coverage terms, premiums, and exclusions
- Work with agents and brokers to clarify information or gather additional documentation
- Apply underwriting rules, actuarial models, and company policies
- Make acceptance, denial, or modification decisions on applications
- Ensure all documentation meets regulatory and compliance standards
- Stay current on changes in insurance laws and industry trends
Requirements
Hard skills
- Risk evaluation for property, casualty, and liability policies
- Familiarity with underwriting tools and rating systems
- Understanding of ISO and insurance compliance standards
- Knowledge of reinsurance practices and risk layering
Soft skills
- Analytical and objective decision-making
- Strong written and verbal communication
- Organizational skills and time management
- Ability to collaborate with sales and broker teams
Educational requirements
Bachelor’s degree in finance, insurance, business, or related field
Certifications
- Chartered Property Casualty Underwriter (CPCU)
- Associate in Commercial Underwriting (AU)
Preferred qualifications
- Experience with insurance underwriting software platforms
- Previous work with complex or specialty insurance policies
- Familiarity with automated risk modeling systems
- Regulatory knowledge in multi-state underwriting
Example 2: Mortgage Underwriter
Position overview
A mortgage underwriter evaluates loan applications to determine creditworthiness and compliance with lending standards. They analyze financial documents, credit reports, and property appraisals to ensure loans align with internal and regulatory guidelines.
Responsibilities
- Review loan files, income documentation, and credit histories
- Analyze borrower qualifications using DU, LP, and manual underwriting guidelines
- Assess appraisals and collateral documentation
- Verify compliance with FNMA, FHLMC, FHA, VA, or other lending standards
- Make loan approval, denial, or conditional approval decisions
- Document underwriting rationale clearly and accurately
- Collaborate with loan processors, originators, and closing teams
- Stay updated on regulatory changes and mortgage industry trends
Requirements
Hard skills
- Loan underwriting using DU and LP systems
- Familiarity with FHA, VA, and conventional loan guidelines
- Understanding of TRID and RESPA requirements
- Credit risk and income analysis
Soft skills
- Sound judgment and accountability
- Written communication and documentation accuracy
- Deadline management and multitasking
- Ability to work cross-functionally with lending teams
Educational requirements
Bachelor’s degree in finance, accounting, business, or economics
Certifications
- Certified Mortgage Underwriter (NAMU)
- FHA Direct Endorsement (DE) underwriter designation
Preferred qualifications
- Experience with jumbo, construction, or non-QM loans
- Knowledge of Encompass or other loan origination systems
- Multistate or high-volume underwriting experience
- Familiarity with self-employed income analysis
Example 3: Loan Underwriter
Position overview
A loan underwriter evaluates various types of loans, including personal, auto, and small business financing. They assess borrower risk and determine whether loan applications meet organizational and regulatory lending standards.
Responsibilities
- Review and assess loan applications for completeness and accuracy
- Analyze financial documentation, credit scores, and repayment capacity
- Apply risk models and lending guidelines to determine eligibility
- Communicate with loan officers and clients to gather additional information
- Prepare written summaries of underwriting decisions
- Ensure compliance with lending regulations and internal policies
- Support timely loan processing and decision turnaround times
Requirements
Hard skills
- Credit scoring analysis and debt-to-income (DTI) assessment
- Use of automated underwriting systems
- Knowledge of consumer lending regulations
- Loan structuring and financial documentation review
Soft skills
- Critical thinking and decision-making
- Customer service and team collaboration
- Accuracy in documentation
- Time management and workload prioritization
Educational requirements
Bachelor’s degree in finance, business, or a related field
Certifications
Certified Lending Underwriter (CLU) or equivalent, if applicable
Preferred qualifications
- Experience in auto, personal, or small business loan underwriting
- Familiarity with credit union or alternative lender environments
- Bilingual proficiency for serving diverse clientele
- High-volume or fintech underwriting experience
Example 4: Health Insurance Underwriter
Position overview
A health insurance underwriter evaluates medical histories and risk factors to determine the eligibility and pricing of health insurance plans. This role helps strike a balance between risk and affordability, ensuring compliance with healthcare laws and organizational policies.
Responsibilities
- Review health insurance applications, medical records, and pharmacy data
- Analyze risk factors such as pre-existing conditions and claims history
- Determine eligibility and premium rates within ACA and HIPAA guidelines
- Collaborate with medical directors and actuarial teams
- Apply proprietary algorithms or models to assess population risk
- Document decisions and ensure proper record-keeping
- Maintain awareness of healthcare regulations and plan updates
Requirements
Hard skills
- Understanding of medical terminology and claims data
- Familiarity with ACA, HIPAA, and underwriting compliance rules
- Use of health risk assessment software
- Experience with large group and individual plan assessments
Soft skills
- Ethical judgment and confidentiality awareness
- Analytical problem-solving
- Effective written communication
- Ability to work with healthcare and administrative professionals
Educational requirements
Bachelor’s degree in health administration, insurance, or a related field
Certifications
- Health Underwriting certification (if required by employer)
- AHIP certification (optional, but often valued)
Preferred qualifications
- Prior experience in group health or employee benefits underwriting
- Familiarity with Medicare Advantage or Medicaid plan assessments
- Experience with large-scale data analytics
- Exposure to population health or wellness program evaluation