Transitioning from KPO to Traditional Insurance Underwriting: Possibilities and Steps

A person with experience as an insurance underwriter at a Knowledge Process Outsourcing (KPO) firm can indeed transition to a job as an underwriter at traditional insurance companies. Here are the key factors and steps to consider for this transition.

Relevant Skills and Experience

The skills gained in underwriting at a KPO such as risk assessment, data analysis, and familiarity with underwriting guidelines are highly beneficial and transferable.

Industry Knowledge and Networking

Exposure to the insurance sector in a KPO setting provides valuable insights into industry practices, regulations, and customer needs. Building a strong network in the insurance industry can facilitate job opportunities and provide valuable referrals.

Certifications

Depending on the specific underwriting role, obtaining relevant certifications like the CPCU (Chartered Property Casualty Underwriter) or AU (Associate in Underwriting) can significantly enhance qualifications and make a candidate more competitive.

Specific Requirements and Tailoring Applications

Different insurance companies may have varying requirements. It is crucial to review job descriptions, understand the specific needs, and tailor applications to highlight relevant experience. This can increase the chances of securing a position.

A Day in the Life of an Insurance Underwriter

To provide insurance coverage for both individuals and companies, underwriters use computer programs to determine the risk involved in insuring a particular person or company and calculate the appropriate premiums for the requested level of coverage. These are critical decisions, as insurance companies assume billions of dollars of risk each year.

Underwriting Opportunities

There are four main categories of insurance that underwriters can work in:

The specific role and opportunities can vary based on the type of insurance and the nature of the clients and risks assessed.

The Tools of the Trade

Most employers prefer candidates with a college degree or professional designation and some insurance-related experience. A bachelor's degree in almost any field may be sufficient, but employers often prefer applicants with coursework in business law and accounting, or work experience in the insurance and underwriting field.

Underwriting skills are primarily learned on the job, starting with roles as trainees or assistant underwriters. During this time, individuals help collect and evaluate information on clients, and are supervised by experienced underwriters. Some large insurance companies offer comprehensive training programs.

Certifications and Advancement

Certifications can significantly improve earnings and open up new opportunities for advancement. For example, the CPCU or AU designations often require experience and additional exams.

Show Me the Money

According to the Bureau of Labor Statistics, the average annual earnings for insurance underwriters in 2006 were $57,960. However, additional benefits such as retirement plans, group life and health insurance, and salary incentives are commonly provided.

Conclusion: If you are a detail-oriented, analytical person who enjoys solving problems, insurance underwriting may be a career that suits you. With the right qualifications, experience, and certifications, a successful transition from KPO underwriting to traditional insurance underwriting is quite feasible.