Underwriting & Association Careers

1. Underwriting & AssociationCareers October 20, 2006 Cynthia R. Ziegler, CPCU, ARM, AAI, CAE CAS Executive Director

2. Underwriting Careers • What is Insurance Underwriting? • Core Competency of insurance companies • Includes examining, accepting or rejecting insurance risks

3. Underwriting Careers • History of Underwriting • Lloyd’s of London Edward Lloyd’s Coffee House in Tower Street, circa 1688 Lloyd’s of London, today

4. Underwriting Careers The Golden Hind Cynthia Ziegler – 20% Professor D’Arcy – 10% Professor Gorvett – 10 % Donald Trump – 49% Martha Stewart – 11%

5. Underwriting Careers • Becoming an Underwriter • Entry-level jobs for college graduates with business administration or finance degrees OR other degrees are acceptable with coursework in business, law and accounting classes • Continuing education is necessary for advancement

6. Underwriting Careers • Attributes of Underwriters • Enjoy analyzing information • Pay high attention to detail • Possess good judgment to make sound business decisions • Excellent communication and interpersonal skills

7. Underwriting Careers • What do underwriters do? • Gather information from insurance applications • Analyze information to determine if risk is acceptable • Calculate the risk of loss • Establish appropriate premium • Issue policies to cover risks

8. Underwriting Careers • Underwriting Specializations • Commercial Property-Casualty (Business Risks) • Workers Compensation • Marine, Inland & Ocean • Aviation • Agriculture, Crop Hail, Animal Mortality • Professional Liability • Personal Lines (Your things & Activities) • Catastrophe (Flood, EQ, and Weather)

9. Underwriting Careers • Career Path Opportunities • Underwriter Trainee • Assistant Underwriter • Underwriter • Senior Underwriter/Underwriting Supervisor • Director/VP/SVP of Underwriting • CUO Chief Underwriting Officer

10. Underwriting Careers • Advancement • Continuing education is required • Certification in relevant area • Insurance companies generally pay tuition for course/certification and offer salary incentives for successfully passing courses.

11. CPCU Underwriting Careers • Certifications • CPCU (Certified Property and Casualty Underwriter) • RPLU (Registered Professional Liability Underwriter) • AU (Associate in Underwriting) • AMIM (Associate in Marine Insurance Mgt.)

12. Underwriting Careers • Job Outlook • Best prospects for those with excellent computer and communication skills coupled with a background in finance. • Because underwriting software increases worker productivity, employment is expected to grow slowly through 2014. • Insurance is a necessity and there will always be a need for underwriters so it is less subject to recession and layoffs.

13. Underwriting Careers • Employment in Insurance • 2005 numbers in (00): • Property & Casualty 601.4 • Life & Health 752.6 • Reinsurance 29.8 • Agencies & Brokerages 649.0 • Total for the Industry 2,255.4 Over the last 10 years, employment in the insurance industry (all sectors) has averaged 2.1 percent of the total U.S. employment. Source: U.S. Department of Labor, Bureau of Labor Statistics.

14. Underwriting Careers • Underwriter Statistics • 101,000 Insurance Underwriters in 2004 • 2 out of 3 underwriters work for Insurance Companies • Remaining work for insurance agencies, companies that offer insurance services to insurance companies and policyholders. • A small number work for banks, mortgage companies and real estate firms.

15. Underwriting Careers • Salary Ranges for those who have earned the CPCU designation Statistics as of June 2006. Source: CPCU Society

16. Underwriting Careers • Gender of Underwriters Statistics as of June 2006. Source: CPCU Society

17. Underwriting Careers • Top Twenty U.S. Property/Casualty Companies, by Revenues, 2005($ millions)

18. Underwriting Careers • How Do Underwriters Keep Current with changes? • Read Trade Publications • Attend Continuing Education Seminars • Form Associations or Professional Societies to learn from each other through conventions, meetings and scholarly journals. • Specialized (IMUA, PLUS) • General (CPCU)

19. Association Careers • Associations in the U.S. • 147,000 associations in the US • Associations employ 295,000 in US • Majority are located in the following metro areas: • Washington, DC (3,500) • Chicago, IL (1,500) • New York, NY (1,900) • Trade Associations are made up of Individuals & businesses • Professional Societies are made up of only individual members.

20. Public For Profit Owned by Shareholders Controlled by Board Operations Conducted by Employees Organized by Functional Division Purpose is to create profit/wealth for shareholders Not-for-Profit Owned by Members Policy Set by Board Activities conducted jointly by staff and member volunteers Organized around Functional Activities Purpose is to provide member services and enhance the profession Association Careers

21. Association Careers • What Do Associations & Societies Do? • 95% offer education programs • 81% use the Web and e-mail to share information with members • 79% offer information and public information and education • 71% conduct industry research or develop statistical information • Most all promulgate codes of conduct or codes of ethics and require members to be bound by those codes

22. Association Careers • Attributes of Association Staff • College degree • Extremely flexible & versatile • Ability to manage multiple projects simultaneously • Tact and diplomacy • Well organized • Excellent communication skills • Team player • Thick skin

23. Association Careers • Typical Career Path • Administrative Position ($33-44k) • Coordinator ($49-77K) • Manager ($63-103k) • Director/VP/SVP ($82-136K) • Executive Director/CEO ($140-828K) Organizational structure tends to be “flatter” and career opportunities are usually created by moving to larger organizations.

24. Association Careers • Typical Job Functions in Associations & Societies • Education and professional development planners • Publication editors & writers, desk top publishing • Government relations and lobbying • Researchers, librarians/information specialists • Credentialing • Web developers and editors • Accountants • Meeting planners • Marketing & communications • Executives/CEOs

25. Association Careers • Certifications • CAE, Certified Association Executive • CMP, Certified Meeting Planner • CPA, Certified Public Accountant

26. Association Careers • Property and Casualty Associations and their Locations • CPCU Society and AICPCU – Malvern, PA • Casualty Actuarial Society – Arlington, VA • American Insurance Association – Washington, DC • Inland Marine Underwriters Association – New York • Property Casualty Insurance Association– Downers Grove, IL • Insurance Accounting and Systems Association – Durham, NC • Insurance Information Institute – New York • Captive Insurance Company Association – Minneapolis, MN • Society of Insurance Trainers and Educators – San Francisco, CA

27. Thank you!

28. Casualty Actuarial Society 4350 North Fairfax Drive, Suite 250 Arlington, Virginia 22203 www.casact.org