Average Insurance Underwriter salary in South Africa 2024

The average insurance underwriter salary in South Africa is R26,700.00 per month. Insurance underwriters assist in risk assessment, determining payable […]

average insurance underwriter salary

The average insurance underwriter salary in South Africa is R26,700.00 per month. Insurance underwriters assist in risk assessment, determining payable premiums, and determining whether or not a person should be insured. Their responsibilities include data analysis, claim history, approval or denial of cover amounts, and other duties.

The job of an insurance underwriter is demanding and entails numerous responsibilities. As previously stated, insurance underwriters are usually generously compensated for their efforts. An insurance underwriter’s annual bonus ranges from R5,000.00 to R32,000.00.

The average annual bonus for an insurance underwriter is R23,711.00 (Salary Expert). In South Africa, not all insurance underwriters receive a bonus. Only 30% of insurance Underwriters received a bonus in 2021, according to Salary Explorer, while 70% did not.

Insurance underwriters are compensated with commissions for their efforts. Underwriter commissions in South Africa range from R0.00 to R49,000.00 per year. Commissions and bonuses received by insurance underwriters ranged between 1% and 6% of their annual salary.

The income of an insurance underwriter is made up of commissions, bonuses, and salary; however, the salary of an insurance underwriter is also influenced by a number of factors. These factors are discussed further below. 

Factors that influence the salary of an insurance underwriter 

Education 

The level of education of insurance Underwriters plays a role in determining their salary. A salary of an insurance underwriter increases as their level of education increases. The lowest-earning underwriters are those with a national certificate. 

An insurance Underwriter with a national diploma can expect to earn an average monthly salary of R20,800.00. Insurance underwriters with a Bachelor’s degree, on the other hand, earn an average of R32,000.00 per month.

Those with a Bachelor’s degree earn 53% more than those with a national diploma working as an insurance underwriter. This shows how the level of education influences an insurance underwriter’s salary.

Employer 

There are numerous insurance employers in South Africa looking for insurance Underwriters. Long-term and short-term insurers in South Africa employ insurance underwriters. These employers have an impact on an insurance underwriter’s salary.

An insurance Underwriter’s salary is set by his or her employer. Furthermore, employers determine the benefits that insurance underwriters can earn. Employers can contribute to medical aid, provident funds, preservation funds, pension funds, and other programs.

Here are some of the best insurance underwriter employers:

City of Employment 

The city of employment has a role in determining the salary of an insurance Underwriter. Here are the highest-paying cities in South Africa for insurance underwriters:

#CityAverage Monthly Salary 
1Somerset West, Western Cape R32,224.00
2Cape Town, Western Cape R28,910.00
3Johannesburg, Gauteng R26,351.00
4Pretoria, Gauteng R25,133.00
5Roodepoort, Gauteng R20,000.00 

An insurance Underwriter’s salary is also influenced by their level of experience in the field. Below is a salary breakdown for an insurance underwriter.

Salary of an insurance Underwriter based on their level of experience in the field 

Salary of an insurance underwriter with 0 – 2 years of work experience in 2024

An insurance Underwriter with 0 to 2 years of experience earns an average monthly salary of R14,700.00. Insurance Underwriters with 0 years of experience earn the lowest salary in this category, with an average monthly salary of R12,400.00.

The highest-earning insurance Underwriters in this category have 2 years of work experience and earn an average salary of R16,000.00 per month.

Salary of an insurance underwriter with 3 – 5 years of work experience in 2024

An insurance Underwriter with 3 to 5 years of experience can expect to earn R18,900.00 per month on average. The salary represents a 29% increase over the average salary of insurance Underwriters with 0 to 2 years of experience.

Insurance Underwriters with 5 years of experience earn the most in this category, with an average monthly salary of R21,300.00. Those with 3 years of experience earn the least in this category, with an average monthly salary of R17,400.00. 

Salary of an insurance underwriter with 6 – 10 years of work experience in 2024 

An insurance Underwriter with 6 to 10 years of experience can expect to earn R26,100.00 per month on average. The salary represents a 38% increase over the average salary of insurance Underwriters with 3 to 5 years of experience.

Insurance Underwriters with 6 years of experience earn the least, with an average salary of R24,000.00 per month. Insurance Underwriters with 10 years of experience earn the most in this category, with an average monthly salary of R28,380.00.

Salary of an insurance Underwriter with 11 – 15 years of work experience in 2024

An insurance Underwriter with 11 to 15 years of experience earns an average monthly salary of R32,400.00. The salary represents a 24% increase over the average salary of insurance underwriters with 6 to 10 years of experience.

Those with 11 years of work experience earn the least in this group, with an average monthly salary of R29,600.00. Insurance Underwriters with 15 years of experience earn the most in this group, with an average monthly salary of R33,200.00.

Salary of an insurance Underwriter with 16 – 20 years of work experience in 2024 

An insurance Underwriter with 16 to 20 years of experience earns an average monthly salary of R34,700.00. The salary represents a 7% increase in salary over the average salary of insurance Underwriters with 11 to 15 years of experience.

Insurance Underwriters with 20 years of experience earn the most in this category, with an average monthly salary of R37,000.00. Insurance Underwriters with a master’s degree and 20+ years of experience can earn up to R39,600.00 per month.

Conclusion 

Insurance Underwriters play an important role in determining insurance products for clients, and their pay reflects the amount of work they put in. A master’s degree is extremely valuable to an insurance underwriter because it can significantly increase one’s salary.


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