What Is a Job in Underwriting?

October 4 2025 - A job in underwriting involves assessing risk before a company agrees to offer financial products such as insurance policies, loans, or mortgages. Underwriters decide whether to approve an application and on what terms. They look at information about the applicant, weigh up the level of risk, and set the price or interest rate to match.

In insurance, for example, underwriters might review someone’s health, driving record, or the type of property they want to insure. In loans or mortgages, they check income, credit history, and the value of any security offered. Their job ensures companies do not take on more risk than they can handle.

Across the UK, thousands of underwriters work in banking, insurance, and specialist finance firms. According to recent industry figures, the financial and insurance sector employs over 1.1 million people, with underwriting forming a significant part of this workforce.

What Are The Skills and Background Needed For Underwriting?

Many people start underwriting with a background in finance, mathematics, or business, but it is not always essential to have a specific degree. Some employers offer trainee roles where people learn on the job while studying for professional qualifications.

Underwriters need strong analytical skills because they deal with numbers and data every day. They also need good attention to detail to spot potential risks that others might miss. Communication skills are important too, as they often explain their decisions to brokers, sales teams, or customers.

People coming from customer service, administration, or banking roles sometimes move into underwriting because they already understand financial products and have experience dealing with clients.

There are some very specific levels of underwriting for niche products too, often using the individual’s years of experience in the industry, such as assessing aviation insurance, probate loans or boat insurance.

What is The Day-to-Day Work For Underwriting?

Underwriters spend much of their time reviewing applications, checking documents, and using computer systems that calculate risk levels.

Today, a lot of underwriting is automated using different softwares, but in some cases, manual underwriting is used to make the final decision, especially for larger premiums or loans.

For instance, in motor insurance, the system might flag a young driver with several accidents as high risk, meaning the premium would be higher. In mortgages, someone with a steady income and a good credit score is likely to be approved on better terms than someone with large debts.

They also keep up to date with regulations and company policies, as lending and insurance rules in the UK can change regularly. Some senior underwriters specialise in complex cases where computer systems cannot make automatic decisions.

What is a Typical Salary From a Job in Underwriting?

In the UK, the starting salary for an entry-level underwriter is usually between £22,000 and £27,000 a year. Trainees often start on the lower end while completing qualifications or learning the role.

With experience, salaries rise steadily. Mid-level underwriters typically earn between £35,000 and £45,000, depending on the company and sector. Senior or specialist underwriters handling large commercial accounts or complex loans can earn £60,000 or more. In some areas of London and senior corporate roles, total packages can even reach £80,000 when bonuses are included.

A recent salary survey showed that financial services roles, including underwriting, have grown by around 6% in pay over the last two years, reflecting strong demand for skilled professionals.

Career Outlook

Underwriting offers good career progression, with opportunities to move into management, risk analysis, or product development. As financial services continue to grow and regulation becomes stricter, skilled underwriters remain in demand across insurance, banking, and loan sectors.

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