Insurance Producer vs. Underwriter: What Are the Differences?

A career in insurance can be both exciting and rewarding. Two common positions in the industry are that of an insurance producer and an underwriter. Though both roles are important, there are several key differences between them.

In this article, we will discuss the differences between an insurance producer and an underwriter, and we will provide additional information about careers in insurance.

What is an Insurance Producer?

Insurance Producers are the salespeople of the insurance industry. They work with clients to determine their insurance needs and then sell them policies that will provide the coverage they need. Insurance Producers may work for insurance companies, brokerages or other financial institutions. They typically work with clients in person, but some may work over the phone or online. Insurance Producers must be licensed in the states where they work and must complete continuing education courses to maintain their licenses.

What is an Underwriter?

Underwriters are insurance professionals who assess the risks associated with insuring someone or something and set premiums accordingly. They review applications for insurance, including policies, medical records and other information, to determine whether or not to provide coverage and at what cost. Underwriters use their knowledge of the insurance market to protect the company’s assets and ensure that it doesn’t take on too much risk. They also work with agents and brokers to ensure that they are providing accurate information and that the company’s policies are being followed.

Insurance Producer vs. Underwriter

Here are the main differences between an insurance producer and an underwriter.

Job Duties

Insurance producers and underwriters share some job duties, such as researching insurance policies and helping clients find the right coverage. However, their other job duties differ because underwriters evaluate insurance applications and producers help create those policies.

An underwriter evaluates an insurance application to determine whether or not a company should accept it. An insurance producer helps the applicant complete the application by asking them questions about their personal information and providing details about the policy they’re seeking. If the company accepts the application, the underwriter sends it to the underwriting department for further review. There, underwriters may make additional changes before sending it back to the selling department.

Producers also help with sales, but they do so in different ways. An underwriter may help an insurance agent or broker develop marketing strategies that encourage people to purchase their products. A producer may also help their organization improve its services by suggesting new ideas or making improvements to current processes.

Job Requirements

To become an insurance producer, you need a high school diploma or equivalent. You must also pass your state’s insurance licensing exam. Some states require you to take pre-licensing courses before taking the exam. Once you have your license, you can start working as an insurance producer.

To become an underwriter, you need at least a bachelor’s degree in business, finance or a related field. Many underwriters also have a master’s degree. You might also need to pass your state’s insurance licensing exam.

Work Environment

Insurance producers work in a variety of environments, depending on the insurance company they work for. Some companies have their producers work from home while others require them to travel to meet with clients and prospects. Underwriters typically work in an office environment where they can access all necessary information about policies and claims. They may also travel to visit sites or meet with clients.

Skills

Both insurance producers and underwriters need to have excellent customer service skills. Insurance producers work with clients to help them find the right insurance policies, while underwriters assess risk and determine whether or not to provide coverage. In both cases, strong communication and interpersonal skills are essential for building relationships with clients and providing them with the information they need.

Insurance producers also need to be good at sales, as they need to be able to sell insurance policies to potential customers. They benefit from having strong negotiation skills to get the best possible rates for their clients. Underwriters, on the other hand, need to have strong analytical skills to assess risk. They also need to be able to pay attention to detail to make sure that all the information they collect is accurate.

Salary

Insurance producers earn an average salary of $54,654 per year, while underwriters earn an average salary of $68,337 per year. Both of these salaries may vary depending on the type of insurance you work with, the size of the company you work for and the level of experience you have in the field.