How Much do Underwriters Make on Average in 2023?

how much do underwriters make
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Back then, sea journeys were the backbone of the world’s trade and economy. Many ships carried goods as they sailed around the globe. But such commercial excursions also carried substantial risks that would have led to enormous losses.

Of course, shipowners looked for insurance in that area. They would create detailed documentation for that, listing information about their ship, cargo, personnel, and destination. In exchange for a premium, business owners who were prepared to take on the latent risk would sign their names under those agreements. The term “underwriter” originated in this context.

Because of the risk these underwriters hedged, they were paid an enormous sum.

This article will bother on how much underwriters make on average in 2023.

What is an Underwriter?

An underwriter is a person who takes on the risk of another party. Depending on the business, they are compensated for their services with a fee known as a premium, commission, interest, or spread.

Similar to this, an underwriter performs a variety of job duties depending on the business. Underwriters typically work for companies that deal with debt, equity, insurance, and mortgage loans. The fundamental idea of an underwriter is that they evaluate and take on customer risks in exchange for a certain payout.

Underwriters have specialized knowledge of the complexities of the sectors they work in. They use this information to assess and weigh the risks associated with a deal or business choice. Depending on what they understand, they either accept the danger or deny it, depending on what is best for the organization they are representing.

What are the Different Types of Underwriters?

Based on different industries, underwriters can broadly be classified into four categories:

Equity underwriters

An equity underwriter’s primary responsibility is managing the issuance and distribution of stocks on behalf of businesses. However, it might be more obvious during the IPO stage.

Companies that are transitioning from private to public status must decide at what price to issue such shares. An underwriter can help in this situation. Investment banks are contacted by companies regarding initial public offerings.

Investment banks as a whole make sure that regulations are followed, but their underwriters in particular are in charge of analyzing the demand for such stocks. In it, they assess the IPO market demand for a company by getting in touch with various institutional investors, such as mutual funds and insurance companies.

Underwriters set IPO prices for various organizations based on those conclusions. They also ensure the purchase of a particular number of shares. Underwriters cover that risk if they don’t sell as promised, which is such a deviation from estimation.

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Insurance underwriters

Underwriters of insurance fulfill two tasks. To decide whether to accept or reject an application, they first assess the risk that the applicant implies.

They accept it if assuming the risk favors such an insurer. They then establish a premium that reflects this estimated risk and lay out the requirements for an applicant.

Their main goal in this regard is to profit the corporation by dispersing the risk among as many policyholders as they can.

Second, they examine claims that Policyholders have submitted, and based on their assessment, underwriters determine whether a claim is valid or not. They choose the right level of coverage if they are consistent.

Mortgage underwriters

This group of underwriters determines whether mortgage loan applications are approved or denied. Mortgage underwriters examine applications to assess the risk, much like their counterparts in insurance.

They evaluate an applicant’s debt-to-income ratio, credit history, repayment history, and other factors. They assess the value of the pledged asset as well to see if it can cover losses in the event of default.

Therefore, a mortgage underwriter’s decision about approval is final. Additionally, underwriters are quite important in setting interest rates for both secured and unsecured loans.

Debt security underwriters

These underwriters purchase debt instruments from the issuing body, such as corporate bonds and municipal bonds, and resell them to other corporations for a profit. The spread refers to this profit.

These people have the option to offer debt securities directly or through dealers. A group of underwriters known as an underwriter syndicate may occasionally be involved in carrying out the entire procedure.

How Much do Underwriters Make on Average in 2023

Chief Underwriter

Salary range: $100,000-$182,500 per year

In the United States, the majority of Chief Underwriter salaries currently fall between $100,000 (25th percentile) and $182,500 (75th percentile) per year. 

This wide range of compensation possibilities shows that, depending on skill level, region, and years of experience, there may be numerous opportunities for promotion and better pay. 

Group Underwriter

Salary range: $45,500-$107,500 per year

In the United States, the majority of Group Underwriter salaries currently fall between $45,500 (25th percentile) and $107,500 (75th percentile) per year. 

This wide range of compensation possibilities shows that, depending on skill level, region, and years of experience, there may be numerous opportunities for promotion and better pay. 

Field Underwriter

Salary range: $75,000-$102,000 per year

To assess if their employer should approve the application and offer coverage for the home, building car, or other property, field underwriters examine the property listed in insurance applications.

The responsibilities in this position include checking applications to make sure it is complete, applicant’s credit, getting in touch with the applicant to validate the information provided, and scheduling a trip to the applicant’s location to analyze the application items.

To provide the business with an informed recommendation on whether to grant or deny the request, you must conduct a comprehensive inspection of the property and thoroughly document all of your findings. 

After your inspection is over, send your information to the agent managing the applicant’s file so that it can be processed.

Production Underwriter

Salary range: $42,500-$100,000 per year

Production underwriters play a crucial role in the sales and marketing of commercial real estate by insurance companies. In this position, you travel to various insurance companies to forge connections with the agents and market the goods and services of your business.

After you’ve established a contract with an agency, you collaborate with the underwriting division to assess the applicants who apply through that agency’s network for financial risk and decide if they’re eligible for coverage.

Reviewing loss history reports, credit checks, and independent inspections are frequent requirements. The creation of underwriting policies for your business and training new employees may be additional work responsibilities.

Commercial Real Estate Underwriter

Salary range: $79,000-$98,500 per year

Loan requests for commercial buildings and projects are examined by a commercial real estate underwriter. They are responsible for compiling reports that assess the risk or potential loss associated with proposals and make recommendations for contingencies to take account of unanticipated events.

Determine the credit worthiness of a borrower using information from their employment and credit history, and make any adjustments to the loan coverage, among other duties.

A bachelor’s degree, knowledge of current lending practices, and the capacity to assess property values are requirements for the position of commercial real estate underwriter.

Conventional Underwriter

Salary range: $85,000-$98,000 per year

Currently, the average yearly pay for conventional underwriters in the US is between $85,000 (25th percentile) and $98,000 (75th percentile).

Regardless of their skill level, location, or years of experience, the majority of persons in this position earn comparable earnings.

Life Insurance Underwriter

Salary range: $67,500-$93,500 per year

Currently, the average yearly pay for life insurance underwriters in the US is between $67,500 (25th percentile) and $93,500 (75th percentile).

Although some progress is conceivable, the moderate range of earnings indicates that the income in this position will be consistent regardless of skill level, location, and years of experience. 

This will make a good read: PERSONAL LOAN UNDERWRITER: General Overview and Job Description

Underwriting Consultant

Salary range: $60,500-$91,000 per year.

Currently, the average yearly pay for Commercial Underwriters in the United States is between $60,500 (25th percentile) and $91,000 (75th percentile).

Although some growth is conceivable, this moderate range of salaries suggests that the income for this position will be consistent independent of skill level, location, and years of experience. 

Medical Underwriter

Salary range: $42,000-$85,500 per year

A medical underwriter examines applications and creates draft policies for those seeking health insurance. Examining insurance paperwork, examining applications and medical tests, and determining individual risk to your business are the major responsibilities of a medical underwriter.

Additionally, you allocate the proper premium and coverage amounts. Most frequently, positions are offered with brokers and health insurance businesses.

Marine Underwriter

Salary range: $50,500-$77,000 per year

A marine underwriter offers insurance protection for vessels and other maritime property. Your duties in this line of work include valuing the ship, the crew, and the goods or cargo they convey.

Your daily responsibilities entail considering various factors, including the worth of the cargo, the cost of the boat, whether it will function ashore or at sea, and the laws and regulations of the nations to which the vessel may sail. 

Additionally, you gather and arrange data on pre-qualification.

Underwriters vs. Agents and Brokers

A broker or agent is typically involved with financial items that need an underwriter’s supervision. You, the customer, will typically speak with them directly.

An agent or broker is a salesperson who offers you the product, to put it simply. They can also be in charge of informing you of the underwriter’s ultimate judgment regarding your case.

The underwriter, on the other hand, has much more decision-making authority. The reason for this is that, as we stated before, their assessment of your application and financial status ultimately determines whether or not you are approved.

The broker or agent you are working with will frequently have a rudimentary awareness of the underwriting policies of the organization. They might provide you with some insight into your anticipated outcome during your interactions with them. Even though this is unquestionably valuable, the underwriter will ultimately decide.

Is Being An Underwriter Stressful?

Being an underwriter is a stressful job, and telling customers that the company is unable to cover them will never be easy.


In a variety of financial scenarios, underwriters are essential. The complexity of the underwriting process also depends on how well the particulars of your finances match the policies of the firm in question.

Ask questions about the underwriting procedure whenever you speak with your broker, agent, or the organization as a whole. The better off you will be in the long run, the more you comprehend the full process.

Frequently Asked Questions

What are the three highest-paid underwriters?

High Paying Insurance Underwriter Jobs
Chief Underwriter
Salary range: $100,000-$182,500 per year.
Underwriting Director: Salary range: $86,500-$174,500 per year.
Underwriting Manager
Salary range: $93,000-$125,500 per year.

How much are underwriters paid in the UK?

Earnings for competent underwriters often range from £25,000 to £40,000. Depending on your location and field of insurance, senior/lead underwriter salaries begin at roughly £40,000 and can reach £90,000 with substantial expertise

Is underwriting a good career?

Anyone interested in working in the banking or insurance industry might consider a career in underwriting. Underwriters sometimes earn a good salary with possibilities for career advancement.



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