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Insurance broker vs underwriter

The differences between insurance brokers and underwriters can be seen in a few details. Each job has different responsibilities and duties. Additionally, an insurance broker has an average salary of $94,006, which is higher than the $61,751 average annual salary of an underwriter.

The top three skills for an insurance broker include customer service, life insurance products and lead generation. The most important skills for an underwriter are customer service, investor guidelines, and mortgage loans.

Insurance broker vs underwriter overview

Insurance BrokerUnderwriter
Yearly salary$94,006$61,751
Hourly rate$45.20$29.69
Growth rate6%-4%
Number of jobs38,4038,510
Job satisfaction-3
Most common degreeBachelor's Degree, 64%Bachelor's Degree, 66%
Average age4644
Years of experience--

What does an insurance broker do?

Insurance brokers are responsible for assisting clients to determine their liability risks and in selecting the appropriate policies for their family, home, business, or automobile to ensure their protection. They direct clients in creating a sound decision and supply them with a variety of quotes that best suit their needs. Their duties include demonstrating the benefits, terms, conditions, and suspension for a number of participating insurance policies. Also, they may negotiate lesser rates for their clients and continue in guiding these clients in technical issues like filing a claim or changing their insurance coverage.

What does an underwriter do?

An underwriter's duties depend on the line of work or industry involved, such as mortgage companies, insurance, or lending firms. However, an Underwriter's responsibility will mainly revolve around using their extensive expertise on how a company will achieve financial gains, and assessing the possible financial risks of a client by reviewing various aspects to determine their capacity to uphold monetary obligations. Most of the time, the Underwriter's tasks will also involve evaluating a client's credit history, health, assets, overall financial history.

Insurance broker vs underwriter salary

Insurance brokers and underwriters have different pay scales, as shown below.

Insurance BrokerUnderwriter
Average salary$94,006$61,751
Salary rangeBetween $62,000 And $141,000Between $39,000 And $96,000
Highest paying CityBirmingham, ALBoston, MA
Highest paying stateWashingtonMassachusetts
Best paying companyLiberty Mutual InsuranceGoogle
Best paying industryInsuranceManufacturing

Differences between insurance broker and underwriter education

There are a few differences between an insurance broker and an underwriter in terms of educational background:

Insurance BrokerUnderwriter
Most common degreeBachelor's Degree, 64%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Insurance broker vs underwriter demographics

Here are the differences between insurance brokers' and underwriters' demographics:

Insurance BrokerUnderwriter
Average age4644
Gender ratioMale, 62.5% Female, 37.5%Male, 38.4% Female, 61.6%
Race ratioBlack or African American, 9.3% Unknown, 3.6% Hispanic or Latino, 15.9% Asian, 4.9% White, 66.2% American Indian and Alaska Native, 0.1%Black or African American, 9.2% Unknown, 2.5% Hispanic or Latino, 9.6% Asian, 5.6% White, 72.7% American Indian and Alaska Native, 0.4%
LGBT Percentage7%9%

Differences between insurance broker and underwriter duties and responsibilities

Insurance broker example responsibilities.

  • Used consultative upselling techniques to provide leads
  • Work as an independent financial planner selling life insurance and annuities to individuals and families
  • Facilitate communications between doctors, hospitals, third party insurance companies and patients to obtain and verify patient billing information.
  • Deliver on the GEICO promise to customers by solving problems and giving competent insurance advice in a courteous and proficient manner.

Underwriter example responsibilities.

  • Attain Jr. underwriter status and AUS underwriting authority.
  • Manage AUS findings and analyze approvals and results accordingly.
  • Complete initial review of appraisals, borrower credit documents, and DU/LP findings according to Fannie Mae and investor guidelines.
  • Research and develop SBA program.
  • Work on project putting together HPR policy.
  • Resolve issues preventing final disposition of REO properties.
  • Show more

Insurance broker vs underwriter skills

Common insurance broker skills
  • Customer Service, 11%
  • Life Insurance Products, 8%
  • Lead Generation, 8%
  • Financial Resources, 8%
  • Annuities, 8%
  • Insurance Carriers, 6%
Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%