Top 11 Underwriter Certifications

Certifications are an important way for underwriters to demonstrate their knowledge and expertise in the field. Having a certification shows potential employers that the individual has the necessary skills and experience to perform the job effectively, which can be especially beneficial in a competitive job market. Additionally, certifications may also provide access to exclusive job postings or networking opportunities within the industry. Finally, certifications can lead to higher wages and better job security as employers are more likely to recognize and reward certified professionals.

This article reviews some of the top certifications for Underwriters and explains how they can contribute to an underwriter's career progression.

What are Underwriter Certifications?

Underwriter certification is a process of verifying the accuracy and completeness of a company’s financial information before it is released to potential investors. This ensures that investors can make informed decisions about the investments they are considering. It also helps protect against fraud and misrepresentation of financial information. The process involves an independent third party, such as a certified public accountant or an investment banker, who reviews the company’s books and records. The underwriter then issues a certification stating that the company’s financial statements have been reviewed and meet certain standards.

Underwriter certification is especially important for companies seeking to raise funds through public offerings. A prospective investor must be able to trust that the company has provided accurate and complete financial information in order to make an informed decision about investing in the business. Without underwriter certification, there would be no assurance that the financial statements were prepared in accordance with generally accepted accounting principles (GAAP) or other applicable regulations.

In addition to protecting investors, underwriter certification also helps companies gain access to capital markets more easily by demonstrating their commitment to transparency and sound fiscal management practices. Companies that are able to provide certified financial information are more likely to attract investors than those without such credentials. As such, underwriter certification can help businesses secure financing more quickly and efficiently than if they had not obtained it.

Pro tip: When looking for an underwriter certification, make sure you understand the requirements of the program and ensure that it is accredited by a recognized organization. Additionally, make sure to research any potential employers to ensure they are reputable and have experience with underwriter certifications.

Related: What does an Underwriter do?

Top 11 Underwriter Certifications

Here’s our list of the best certifications available to Underwriters today.

1. Chartered Property Casualty Underwriter (CPCU)

Chartered Property Casualty Underwriter (CPCU) is a professional designation offered by the American Institute for Chartered Property Casualty Underwriters (AICPCU). It is a comprehensive program of study and examination that provides individuals with the knowledge, skills, and experience necessary to become successful property and casualty insurance professionals.

The CPCU program consists of eight courses and exams. The first five courses cover topics such as insurance principles, finance and accounting, legal environment of insurance, insurance operations, and personal lines insurance. The remaining three courses focus on commercial lines insurance, risk management and financial planning, and business law.

It typically takes two to four years to complete the CPCU program depending on how quickly an individual can complete the required coursework. To receive the designation, an individual must pass all eight exams within a six-year period.

To get started in the CPCU program, individuals must register with AICPCU online or by mail. Registration fees vary depending on whether you are a member of AICPCU or not. Membership fees range from $25-$100 per year. After registration is completed, individuals can purchase study materials from AICPCU or other sources such as textbooks or online courses.

Exam fees also vary depending on whether you are a member of AICPCU or not. Exam fees range from $90-$150 per exam for non-members while members pay $60-$110 per exam. Once all eight exams have been passed successfully within six years of registering for the program, individuals will receive their CPCU designation certificate from AICPCU along with other benefits such as discounts on continuing education programs and access to exclusive job opportunities in the field of property and casualty insurance.

2. Associate in Commercial Underwriting (AU)

Associate in Commercial Underwriting (AU) is a professional designation offered by The Institutes, an organization that provides educational resources and certifications for the insurance industry. The AU designation is designed to provide commercial underwriters with the knowledge and skills necessary to effectively evaluate risk and manage commercial insurance accounts.

The AU program consists of four courses: Principles of Risk Management & Insurance, Commercial Property & Liability Underwriting, Commercial Casualty Underwriting, and Commercial Life & Health Underwriting. Each course is offered online or in-person at various locations across the United States.

It typically takes between six months and one year to complete all four courses required for the AU designation. However, some students may be able to complete the program more quickly depending on their prior knowledge and experience.

To get the AU designation, you must successfully pass all four courses with a minimum grade of 70%. You must also pass an exam administered by The Institutes after completing each course. Once you have passed all four exams, you will receive your AU certification from The Institutes.

The cost of obtaining the AU designation varies depending on which format you choose (online or in-person). In general, it can range from $1,000-$2,000 for all four courses plus exam fees.

3. Associate in Risk Management (ARM)

Associate in Risk Management (ARM) is a professional designation offered by The Institutes, a global leader in risk management and insurance education. It is designed to provide individuals with the knowledge and skills they need to become successful risk managers.

The ARM program consists of eight courses that cover topics such as risk assessment, loss control, insurance principles, and financial analysis. Each course is self-paced and can be completed online or through traditional classroom instruction. The total program takes approximately 18 months to complete, depending on the individual’s pace.

To get an ARM designation, individuals must first pass a qualifying exam administered by The Institutes. Once the exam is passed, they can begin taking the eight required courses. Upon completion of all eight courses and passing the final exam, individuals will receive their ARM designation.

The cost of the ARM program varies depending on how it is taken. Online courses cost $1,395 per course while traditional classroom instruction costs $1,595 per course. In addition to these costs, there is an initial application fee of $150 and a final examination fee of $200 for those taking the online version of the program.

4. Certified Insurance Counselor (CIC)

Certified Insurance Counselor (CIC) is a professional designation given to individuals who have completed a rigorous program of study in the insurance industry. It is designed to recognize those who have demonstrated knowledge and expertise in all aspects of the insurance business.

To obtain the CIC designation, candidates must complete five courses and pass five exams. The courses cover topics such as personal lines, commercial lines, life and health, agency operations, and risk management. Each course consists of 30 hours of instruction and is typically completed over a two-day period. The exams are administered by The National Alliance for Insurance Education & Research (NAIER).

The cost of obtaining the CIC designation varies depending on the state in which you reside and how many courses you take at one time. Generally speaking, it costs around $2,500-$3,000 to become a CIC. This includes course fees, exam fees, textbooks, and other materials needed to complete the program.

Once all five courses are completed and all five exams are passed with a score of 75% or higher, applicants will be awarded their CIC designation from NAIER. This designation is valid for three years after which it must be renewed by taking additional continuing education courses.

5. Accredited Advisor in Insurance (AAI)

Accredited Advisor in Insurance (AAI) is a professional designation program offered by The National Alliance for Insurance Education and Research. This program is designed to help insurance professionals gain the knowledge and skills necessary to become successful advisors in the industry.

The AAI program consists of three courses: Principles of Insurance, Personal Lines Insurance, and Commercial Lines Insurance. Each course covers topics such as insurance principles, coverages, underwriting, claims handling, risk management, and marketing. Once all three courses have been completed successfully, students are eligible to take the AAI exam.

The exam tests knowledge on all aspects of insurance including legal issues, policy forms and endorsements, product knowledge, customer service techniques, and more. Upon passing the exam with a score of 75% or higher, individuals are awarded the Accredited Advisor in Insurance designation.

It typically takes between 6-12 months to complete the AAI program depending on how quickly you can complete each course. The cost of the AAI program varies depending on which institution you choose to take it from; however it typically ranges from $1,000-$2,000 USD for all three courses combined.

6. Chartered Life Underwriter (CLU)

Chartered Life Underwriter (CLU) is a professional designation for life insurance professionals. It is the highest level of recognition for life insurance advisors and is recognized by the American College of Financial Services.

It takes approximately three years to complete the CLU program, which includes completing coursework and passing an exam. The courses cover topics such as estate planning, taxation, investments, retirement planning, and insurance products.

To get the CLU designation, you must first become a member of The American College of Financial Services. Once you are a member, you can register for the CLU program and begin taking courses. Upon completion of all required coursework and passing the exam, you will receive your CLU designation.

The cost to obtain the CLU designation varies depending on your membership status with The American College of Financial Services. For non-members it can range from $2,000-$3,000 USD; however members may be eligible for discounts or scholarships that can reduce this cost significantly.

7. Certified Professional Liability Underwriter (CPLU)

Certified Professional Liability Underwriter (CPLU) is a professional certification offered by The Institutes, a global leader in delivering risk management and property-casualty insurance education. This certification is designed for underwriters who specialize in professional liability insurance, which covers errors and omissions from professionals such as doctors, lawyers, accountants, architects, engineers, and other professionals.

The CPLU certification requires the completion of four courses: Professional Liability Underwriting Principles; Professional Liability Insurance Contracts; Professional Liability Risk Management; and Professional Liability Claims Administration. To earn the CPLU designation, candidates must pass all four courses within three years of starting them.

To get the CPLU certification, you must first apply to The Institutes. After your application is approved, you will be required to complete the four courses mentioned above. Once you have completed all four courses successfully and passed the final exams associated with each course, you will receive your CPLU designation.

The cost of obtaining the CPLU certification varies depending on whether or not you are an Institute member. For non-members, the cost is $1,795 per course plus a one-time fee of $50 for registration materials. For members of The Institutes, each course costs $1,595 plus a one-time fee of $50 for registration materials.

8. Chartered Financial Consultant (ChFC)

Chartered Financial Consultant (ChFC) is a professional designation awarded by the American College of Financial Services. This designation is designed to recognize individuals who have achieved a high level of expertise in financial planning, insurance, taxation, estate planning and investments.

The ChFC program consists of nine courses that cover topics such as retirement planning, estate planning, risk management and employee benefits. To earn the ChFC designation, candidates must complete all nine courses and pass an exam for each course. The entire program typically takes about two years to complete.

To get started on the path to becoming a ChFC, you must first become a member of the American College of Financial Services. Membership requires a one-time fee of $50 and provides access to study materials and other resources needed to prepare for the exams. After completing the membership process, you can register for individual courses or purchase a package that includes all nine courses at once. Course fees vary depending on which package you choose but typically range from $1,000-$2,000 per course.

Once you have completed all nine courses and passed the exams for each one, you will be eligible to receive your ChFC designation from the American College of Financial Services. There is also an annual renewal fee associated with this designation that is currently set at $50 per year.

9. Associate in Reinsurance (ARe)

Associate in Reinsurance (ARe) is a professional designation awarded by The Institutes, a provider of education and research for the risk management and property-casualty insurance industry. It is designed to recognize individuals who have demonstrated a mastery of reinsurance principles, practices, and procedures.

The ARe program consists of four courses that cover topics such as reinsurance fundamentals, accounting, legal aspects, and underwriting. The courses are offered online or in-person at various locations throughout the United States. Each course must be completed within one year from the start date.

To obtain the ARe designation, applicants must complete all four courses with a passing grade and pass an exam administered by The Institutes. The cost of the program varies depending on whether you choose to take the courses online or in person. For online courses, it typically costs around $2,000; for in-person courses it can cost up to $3,500.

Overall, it takes approximately one year to complete all four courses and obtain the ARe designation.

10. Certified Professional Insurance Agent (CPIA)

Certified Professional Insurance Agent (CPIA) is a professional designation offered by The National Alliance for Insurance Education & Research. It is awarded to insurance professionals who demonstrate a high level of knowledge and expertise in the field of insurance.

To become a CPIA, applicants must first meet certain educational requirements, such as having at least three years of experience in the insurance industry or completing an approved course of study. After meeting these requirements, applicants must pass an examination administered by The National Alliance.

The exam consists of 150 multiple-choice questions and covers topics such as risk management, underwriting, claims handling, and customer service. It takes approximately four hours to complete the exam and costs $195 USD. Once the applicant has passed the exam, they will be eligible to receive their CPIA designation.

11. Associate in Marine Insurance Management (AMIM).

Associate in Marine Insurance Management (AMIM) is a professional certification offered by the American Institute for Chartered Property Casualty Underwriters (AICPCU). This certification is designed to provide insurance professionals with the knowledge and skills necessary to effectively manage marine insurance programs.

The AMIM program consists of two courses: Principles of Marine Insurance and Advanced Marine Insurance. The Principles of Marine Insurance course covers topics such as marine policy forms, underwriting and rating, loss prevention and claims handling, and reinsurance. The Advanced Marine Insurance course covers topics such as international marine insurance, legal aspects of marine insurance, and risk management.

The AMIM program takes approximately six months to complete. During this time, students must complete both courses and pass the corresponding examinations with a score of 70% or higher. Upon successful completion of the program, students will receive an Associate in Marine Insurance Management certificate from AICPCU.

The cost of the AMIM program varies depending on the specific institution offering it. Generally speaking, tuition fees range from $500-$1,000 per course. In addition to tuition fees, there may also be additional costs associated with textbooks or other materials required for each course.

Do You Really Need a Underwriter Certificate?

An underwriter certificate is a document that helps to protect the interests of an insurance company, as well as those of the policyholder. It is used when a policyholder is taking out an insurance policy and serves as evidence that the insurer has taken on the risk of the policyholder’s claim. The certificate also outlines any exclusions or limitations in the coverage provided.

Whether or not you need an underwriter certificate depends on your situation and the type of insurance you are seeking. Generally speaking, if you are taking out a life, health, liability or property insurance policy, then it would be wise to obtain an underwriter certificate. This will provide extra protection should something go wrong with your claim.

On the other hand, if you are taking out a more basic form of insurance such as car or home insurance, then it may not be necessary to get an underwriter certificate. However, it is always best to check with your insurer before making any decisions about whether or not to obtain one.

In addition to providing extra protection for yourself and your insurer, an underwriter certificate can also help ensure that all parties involved in a transaction understand their rights and responsibilities when dealing with each other. This can help prevent misunderstandings and disputes from occurring in the future.

Overall, obtaining an underwriter certificate can provide greater peace of mind when taking out any type of insurance policy and should be considered carefully depending on your particular circumstances.

Related: Underwriter Resume Examples

FAQs About Underwriter Certifications

1. What is an Underwriter Certification?

Answer: An Underwriter Certification is a professional designation that proves a person has achieved a certain level of knowledge and experience in the field of underwriting insurance policies.

2. How do I become an Underwriter?

Answer: To become an Underwriter, you must complete the necessary training and education required to pass the certification exam. This may include completing college courses or getting on-the-job training from an experienced underwriter. Once you have completed the requirements, you can sit for the certification exam to become certified as an underwriter.

3. Are there different types of Underwriter Certifications?

Answer: Yes, there are several different types of Underwriter Certifications available depending on your area of expertise or specialization. These include Life & Health Insurance Underwriting, Property & Casualty Insurance Underwriting, Reinsurance Underwriting, and Financial Risk Management.

4. What are the benefits of becoming an Underwriter?

Answer: Becoming an Underwriter can open up many doors in terms of career opportunities and can also provide a higher salary potential than other positions within the insurance industry. Additionally, having an Underwriter Certification can give you more credibility when dealing with clients or customers as they know that you have undergone specific training in order to be certified as an underwriter.

5. How long does it take to get my certification?

Answer: The amount of time it takes to get your certification will depend on how much preparation and studying you do for the exam and how quickly you are able to complete any additional requirements like coursework or on-the-job training. Generally speaking, most people who prepare adequately can complete their certification within 6-12 months depending on their availability and dedication to studying for the exam.