Underwriting for Recent Grads
Why underwriting is a promising field for graduates and young professionals.
By: Mike McDonough
In the past few years, we’ve seen hundreds of underwriting opportunities come through our office. We’ve filled quite a few for upper level and executive underwriters, but we’re seeing more and more positions for recent grads and professionals with just a few years of experience. Below are just a few reasons why pursuing a career in underwriting, especially insurance underwriting, could pay off for younger candidates in the field.
The median starting salary for an underwriter is around $55,000, but some new hires on the coast are seeing entry-level jobs start at $70,000 and above. Most professionals see that number rise by $5,000-$7,000 after they accrue around 5 years of experience. If that sounds like a good start, it should only get more lucrative in the future. In the last 10 years alone, the median annual salary for underwriters has risen by $10,000. Most analysts see this number continuing to grow as the role becomes more in demand in the years to come.
In addition to the financial security, a career in underwriting also offers a great deal of job security for professionals in the field. Most hiring managers in the underwriting industry see at least 6% growth for the position in the future. There’s so much demand in the industry that hiring managers are actively recruiting Insurance underwriters from other fields to train and transition into the role. This field is also more recession-proof than most industries because insurance companies tend to be conservative with their hiring and staffing, even during economic booms.
If job security and financial stability aren’t enough of motivating factors, underwriting is also a field where most experts expect new hires to have an inside track to move up quickly inside their companies. Underwriting currently is facing a huge retirement rate among its baby boomers and senior employees. In fact, over 23% of the underwriting field is set to retire in the next five years. That leaves a lot of executive-level and management positions to be filled by up-and-coming talent. Businesses are also valuing underwriters more than ever. Some of the top companies in the insurance industry are currently stressing the importance of building a strong underwriting staff and emphasizing how their roles will be magnified in the coming years.
If a career in underwriting interests you, there are a lot of different ways to set yourself up for success as a new grad or a young professional. A lot of companies are neglecting training for younger workers, so by securing an internship or even taking online courses, you can make yourself stand out in an already in-demand field. This is a great time to get into the industry for all the reasons above, but also because insurance underwriting is starving for fresh ideas and young energy to move the field forward. You could be a vital and respected part of a company while also creating a lucrative career for yourself.