Associate in Commercial Underwriting (AU): Definition and Process Explained
Explore the Associate in Commercial Underwriting (AU) credential, its significance, and how it empowers professionals to assess risk in commercial insurance.
Julia Kagan is a financial and consumer journalist and former senior editor for personal finance at Investopedia.
What Does Associate in Commercial Underwriting (AU) Mean?
The Associate in Commercial Underwriting (AU) is a specialized professional certification awarded to individuals qualified to assess risk within commercial insurance companies. This role involves analyzing potential losses related to insurance coverage that protects against future financial setbacks caused by injury, illness, property damage, or liability claims.
Insurance underwriters carefully examine insurance applications to determine the level of risk involved. Based on their evaluation, they may approve, decline, or adjust insurance policies in compliance with legal regulations and company policies.
Key Highlights
- The AU credential is designed for professionals working in commercial insurance underwriting.
- It targets insurance agents, brokers, underwriters, supervisors, line of business managers, and reinsurance experts.
- The curriculum emphasizes underwriting principles, ethical decision-making, and a systematic approach to evaluating commercial property risks and causes of loss.
- Typically, candidates complete the AU program and exams within nine to fifteen months.
Deep Dive into Associate in Commercial Underwriting (AU)
The AU designation is granted by The Institutes, a renowned financial education and credentialing organization, after candidates complete a comprehensive self-study program and pass national examinations. This program is tailored for agency and company underwriters, field representatives, and account managers who already possess foundational knowledge of insurance principles and coverage.
The term 'underwriter' has historical roots in finance, originating from bankers who agreed to share risk on ventures like sea voyages, signing their names under risk documentation in exchange for premiums.
In modern times, insurance underwriters are experts who assess and price risks related to insuring individuals and assets, covering areas such as life, health, commercial liability, and homeowners insurance.
AU Program Structure and Requirements
To earn the AU designation, candidates must successfully complete four core courses covering:
- Commercial insurance fundamentals
- Principles of commercial underwriting
- Underwriting commercial property
- Underwriting commercial liability
Additionally, candidates must fulfill an ethics requirement by passing the 'Ethical Decision Making in Risk and Insurance' course, offered at no extra cost. This course equips professionals with tools to uphold ethical standards and maintain public trust.
The Institutes estimate that completing the AU program and exams takes between 12 to 15 months. After obtaining the AU designation, individuals may choose to pursue the AU 67: Strategic Underwriting Techniques course to earn the Associate in Commercial Underwriting—Management (AU-M) credential.
Besides the AU, The Institutes provide various other professional designations, including Chartered Property Casualty Underwriter (CPCU), Associate in Risk Management (ARM), Accredited Adviser in Insurance (AAI), Associate in Reinsurance (ARe), Associate in Insurance Accounting and Finance (AIAF), Associate in Insurance Services (AIS), and Associate in Management (AIM).
Completing the AU program can also contribute credits toward these additional certifications.
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