7 Best Steps to Become an Underwriter in Canada

Knowing How to Become an Underwriter in Canada would help you decide whether you can or not pick up this as a career path in Canada irrespective of where you come from.

Moreover, the knowledge about the options you have in this career, job prospects, and benefits of an Underwriter can make you quickly settle your mind to pursue or venture into this career.

Therefore, in this article, we explain what an underwriter is, How to Become an Underwriter in Canada, the skill requirements for underwriters to be successful, and the seven steps to follow to start and advance your career as an Underwriter in Canada.

Who is an Underwriter?

An underwriter is a person who assesses the risks of mortgage, life, auto, and health insurance applicants to determine eligibility, coverage rates, and the amount of coverage available. Underwriters often work for insurance companies, and they communicate frequently with insurance agents.

Moreover, Underwriting involves researching risks and establishing rates for insurance or mortgages. Many underwriters work for banks or other financial institutions to assess the risks of mortgage or loan applications and the outlooks of stocks.

After the research and evaluate the potential risks, underwriters decide whether to accept, modify, or reject each application. Underwriters help businesses decide whether an action is too risky, set premiums and make sure that the decision-making process is fair and unbiased for everyone.

What does an Underwriter do in Canada? 

An underwriter’s job in Canada involves researching risks and establishing rates for insurance or mortgages. So, many underwriters work for banks or other financial institutions to assess the risks of mortgage or loan applications and the outlooks of stocks.

After they research and evaluate the potential risks, underwriters decide whether to accept, modify, or reject each application. Moreover, Underwriters help businesses decide whether an action is too risky, set premiums and make sure that the decision-making process is fair and unbiased for everyone. Some of the most common responsibilities for an underwriter in Canada are:

• Collecting and reviewing the information needed to calculate risks accurately
• Using insurance underwriting software to evaluate risks and analyze complex statistical data
• Deciding which premiums and coverages the company should offer
• Negotiating contract terms with clients
• Creating a report about the final risk assessment for supervisors.

Why is Underwriting a Good Career

Underwriter’s job is nice and a very good career in Canada. Though, How to Become an Underwriter in Canada may require some certification but this career has good job prospects in different provinces of Canada. Beyond that, it has attractive pay. Just for instance, 

The average commercial underwriter salary in Canada is $62,500 per year or $32.05 per hour. Entry-level positions start at $57,652 per year, while most experienced workers make up to $110,000 per year.

Above all, Underwriter’s job is recognized in Canada as it falls under the Canadian NOC code 1313 and it is available for any qualified person who wishes to venture into the career.

Therefore, you don’t need to spend much time thinking about how good this career is in Canada because it is worth giving your trial and time.

7 Best Steps for Becoming an Underwriter in Canada

How to become an underwriter in Canada requires these 7 steps which if you follow, you will meet your goal of becoming an Underwriter in Canada.

Therefore, To become an Underwriter, whether for insurance or other financial situations, you will need to complete the required education and training. After you start your first job and learn more about the industry, you can continue to advance your career.

If you want to learn how to become an Underwriter. So these are some of the steps you can follow to become an Underwriter in Canada.

• Have a high education certificate 
• Earn a bachelor’s degree.
• Obtain an entry-level position.
• Complete on-site training.
• Determine career goals.
• Earn certification(s).
• Apply for advanced positions.

#1. Get a high education certificate

First of all, complete your secondary school education and have some general insurance experience or A bachelor’s degree, college diploma, or some post-secondary education.

#2. Earn a bachelor’s degree

Most employers look for underwriters with a university degree. You don’t have to study a specific subject, but you should be able to learn about statistics, computer science, and similar topics. Many underwriters choose degrees in business, finance, economics, mathematics, accounting, or a related field.

Furthermore, the most desirable degrees are related to finance, and some underwriters also study for graduate degrees in business administration and similar topics. A graduate degree is especially helpful for anyone interested in management.

#3. Obtain an entry-level position

After receiving your bachelor’s degree in a related field, you can begin applying for entry-level positions. You can find underwriter jobs in multiple settings, including brokerage firms, insurance companies, corporations, and credit intermediation. To determine which work environment offers you the best opportunities, take the time to research your potential employers, their company values, and pathways to career advancement.

This is because most hiring managers in Canada prefer candidates with some experience and knowledge about underwriting. You can learn more and get the experience you need by applying for an internship or an entry-level position like an underwriter’s assistant that offers on-the-job training. Many organizations have training or internship programs.

Search for an opening that lets you work under and learn from a senior underwriter. That way, you can find out what it takes to be a successful underwriter from someone knowledgeable and experienced.

Moreover, you can also develop a more thorough understanding of the insurance industry and learn about assessing risks and analyzing data. As you continue to learn, your supervisor could give you more responsibilities and allow you to work more independently. Eventually, you could even potentially get a promotion.

#4. Complete training

Once you obtain an underwriter position, you will likely undergo extensive training as part of your onboarding process. As your formal education will give you a baseline set of skills, this training period is directed toward helping you apply those skills to the insurance industry.

Yet, with the guidance of a senior underwriter, you can acclimate to more responsibilities until you are trusted to complete your job requirements unsupervised.

#5. Determine career goals

Once you have devoted the necessary amount of time to learn the responsibilities of an underwriter, you can begin thinking about your goals in the industry. There are multiple sectors of insurance that you can specialize in by acquiring the right certification, and if you plan on applying for promotion opportunities, you need to have one or more certifications to do so.

#6. Earn certification(s)

Certifications help demonstrate your expertise as an underwriter. They are also the way to advance your career beyond entry-level positions. By acquiring one or more of these credentials, you are demonstrating your dedication to the industry.

Nevertheless, an underwriting certification usually isn’t required when you start your first internship or underwriting job. However, it can be very useful when you have some experience and want to apply for a higher-level role with more responsibilities and better pay. Completing certification courses can also help you make sure that your knowledge of insurance policies, software, and insurance regulations is current.

#7. Apply for advanced positions

After earning the desired certifications, you can start searching for advanced positions within your company or look for external opportunities. You might be surprised by how many job titles are available within the underwriting profession.

Moreover, underwriters are needed in specialty areas such as mortgage, life, auto, and health insurance sectors, with an associate underwriter, underwriter manager, and senior underwriter positions needed in each of the above-mentioned specialties. The diverse nature of the insurance industry can provide you with ample growth opportunities to elevate your career.

Available Certifications for an Underwriter in Canada

The Insurance Institute of Canada and similar organizations in individual provinces offer a variety of training courses, such as the Underwriter Applied Professional Series, which offers three courses: Underwriting Essentials, Advanced Underwriting, and Practical Issues in Underwriting Management. Additionally, here are some of the available certifications you can pursue:

#1 Accredited Mortgage Professional of Canada:

Mortgage Professionals Canada offers this certification, which takes about 40 hours to complete. It requires four courses and a three-hour, multiple-choice exam with at least a 75% score, and it includes information about underwriting practices, real estate transactions, specialized mortgages, and ethics in the industry.

#2.Certified Residential Underwriter (CRU):

There are three available levels for this designation, which is offered by the Mortgage Bankers Association. Still, After taking the courses, you can keep your certification current with continuing education.

#3.Chartered Insurance Professional (CIP):

The Underwriter Applied Professional Series counts toward the Insurance Institute of Canada’s CIP certification, which is one of the most in-demand from employers of Underwriters. Therefore, It requires 10 courses, five of which are mandatory, and you can choose five electives from a variety of options.

#4. Fellow Chartered Insurance Professional (FCIP): 

After you receive the CIP certification, you can continue your education with the FCIP, which contains six additional courses. Before admission, you’ll need a university degree or five years of work experience in underwriting, a CIP, a current CIP Society membership, and a current Insurance Institute membership.

#5. Chartered Life Underwriter (CLU): 

The Institute for Advanced Financial Education offers this designation. Applicants must have at least four years of experience in the financial industry and complete the four-course Advocis Financial Planning Fundamentals Program for CLU Certification.

Underwriter’s License in Canada

There is no specific license you need to become an Underwriter in Canada because there are just two ways primarily to break into the industry as an Underwriter in Canada. So, either you complete an undergraduate degree or you complete the CIP (Chartered Insurance Professional) Certification. Most employers prefer that you obtain an undergraduate degree or diploma first.

5+ Recommended Essential Skills and Abilities for Underwriters in Canada

To become a successful underwriter, you’ll need a variety of skills and abilities, including:

#1. Computer skills

Underwriters use computers to help them analyze data and make decisions about applications. You’ll need to know how to use specialized underwriting software as well as more common programs like Word and Excel. Moreover, experience with computer programming or cybersecurity can help your resume stand out even more.

#2. Communication skills

Much of an underwriter’s work involves communicating with customers and salespeople. They need to explain insurance rules clearly and ask people the right questions in a professional, friendly way. Hence, Underwriters must also listen carefully to the answers, provide appropriate responses, and negotiate with people. Other communication-related tasks for underwriters include:

• Sounding confident
• Empathizing with others
• Collaborating with coworkers and other professionals
• Adapting to different communication styles
• Understanding body language
• Responding to phone calls and emails promptly
• Providing constructive criticism to assistants and other team members.

Surprisingly, great communications skills can even improve your reputation as an Underwriter, letting you attract more clients through social media and recommendations from current customers.

#3.Math skills

Computer software will help you perform most of the calculations involved in underwriting, but you’ll still need to check some results for accuracy. It’s also important to be able to read and understand charts, graphs, and statistics to evaluate the risks involved for each customer. You can build your math skills by taking a class in statistics or data analysis.

#4. Attention to detail

Attention to detail is essential for making accurate risk evaluations. Even small details like the way a customer’s body language changes in response to questions could be important, and they might prompt you to take a closer look at some customers. Better attention to detail can also help you catch any mistakes early and keep them from adversely impacting your team’s results.

#5.Time management

Time management is important for many people, including underwriters. Scheduling tasks in advance, delegating some responsibilities to team members, and attending meetings and appointments on time can help you increase your performance and prevent stressful situations.

#6. Critical thinking

Underwriters need to think critically, interpret the data they receive accurately, and make decisions that benefit their employers. Problem-solving and prioritizing logic and rationality over your emotions are important as well. Considering the possible long-term results of an action is also essential.

To improve your critical thinking skills, consider your biases, preferences, weaknesses, and strengths carefully. If you’re not sure about a decision, get a second opinion from a colleague to ensure you make strong, well-informed choices. When possible, check the accuracy of the information you receive to ensure that your decision isn’t based on inaccurate data.

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Frequently Asked Questions (FAQ)

How much do underwriters make in Canada?

The average commercial underwriter salary in Canada is $62,500 per year or $32.05 per hour. Entry-level positions start at $57,652 per year, while most experienced workers make up to $110,000 per year.

How long does it take to become an underwriter in Canada?

You can complete the ACU program in nine to 15 months and the CPCU in two to three years. There are additional requirements to earn these designations, including passing foundation courses, complying with ethical standards, and completing a minimum number of experience hours.

What qualifications do I need to be an underwriter in Canada?

To become an underwriter in Canada, you typically need a bachelor’s degree. Moreover, courses in mathematics, business, economics, and finance are beneficial in this field as they can certainly translate to any of the work you will be doing.

How do I start an underwriting career in Canada?

Below are the required steps to start and advance your underwriting career:

• Earn a bachelor’s degree.
• Obtain an entry-level position.
• Complete on-site training.
• Determine career goals.
• Earn certification(s).
• Apply for advanced positions.

Are underwriters in demand in Canada?

Yes, because they are crucial members of financial organizations, underwriters play a leading role in helping companies determine whether or not to take on a contract. Despite the unprecedented impacts of COVID-19 on the global economy and job market. Therefore, underwriters are still in high demand in Canada.

Conclusion

Yes, you have now seen the 7 best steps on How to Become an Underwriter in Canada. Therefore, you can now make up your mind to immigrate to Canada and become an underwriter.