Insurance Careers
Insurance careers are some of the hottest careers in finance
today. Insurance is a trillion dollar industry that employs over 2.5 million
people in the U.S. alone. With today's Americans living longer and earning
more money, the demand for insurance is dramatically increasing and so
is the number of insurance careers.
Insurance careers involve helping individuals and businesses to anticipate
potential risks and protect themselves from catastrophic losses. Insurance
careers are rewarding both personally and financially.
You will help clients understand their insurance needs, help explain their options and help them purchase appropriate insurance policies.
Skill Requirements for Insurance Careers and Risk Management
Insurance companies are in the business of assuming risk by writing
policies which transfer risks from customers to themselves.
Insurance companies are typically in the business either
of providing property and casualty insurance (protect owners of cars,
business and homes against loss and injury), life insurance or health
insurance.
Insurance may be one of the best kept secrets in the field of
finance. Most college students do not realize the high growth and enormous
potential for personal development and advancement that insurance careers
offer.
Risk managers are responsible for helping companies and
governments to minimize the likelihood and cost of accidental losses.
Work as a risk manager requires good communication skills, problem-solving
skills and business knowledge.
Insurance careers are well-suited for those who are good listeners,
who enjoy people and are comfortable with quantitative analysis of risks.
Many people avoid insurance careers because they perceive that the
insurance business is about selling and slickness. Certainly, part of
the insurance business involves selling but keep in mind that insurance
policies help people, especially in times of need. Moreover, most insurance
careers do not involve direct selling.
Key Insurance Career Functions
- Actuary: A career as an actuary requires one to use analytical
skills to predict the risk of writing insurance policies on property,
businesses and people's lives and health. Why does automobile cost so
much more if you under the age of 25? Because an actuary somewhere found
that the risk of insuring automobiles is highly age-dependent. Actuaries
are a crucial part of the insurance process because they use statistical
and mathematical analysis to determine the risk of providing coverage.
To perform their career effectively, actuaries must be informed about
general societal trends and legislative developments which may affect
risk. Actuaries can work either within insurance companies or for government,
pension planning organizations or third-party advisors.
- Agent or Broker: A career as an insurance agent or broker requires
one to advise people and organizations on how to protect things they
value and to sell customers insurance contracts. Agents and brokers
are the first people contacted after an accident, fire or injury. An
understanding of insurance contracts is essential to this type of career.
A career as an agent or broker can be financially rewarding. This career
is highly time-flexible, requires some background in business and is
best if you enjoy interacting with people.
- Claims Adjusters: A career as a claims adjuster requires one
to negotiate insurance claims with people have experienced a loss. The
adjuster is responsible for reaching a claim settlement that is fair
to all parties. Doing well in this career requires a person who is resourceful,
tactful and good with people. Some adjusters work in the field, while
others work out of an office.
- Service Representatives: A career as a service representative
requires one to provide the link between insurance agents who sell policies
and insurance companies who write the policies. Service representatives
must be good listeners and communicators. This career requires knowledge
of your companies' insurance products and ability to establish good
rapport with those working for your companies. A background in liberal
arts can be a great preparation for this career.
- Loss Control Specialist: A career as a loss control specialist
requires one to help keep accident and losses to a minimum. Loss control
specialists visit factories, shop floors and businesses to identify
potential hazards and help to eliminate them. In the health insurance
area, a loss control specialist might work with an organization to promote
preventive health care in the workplace or to limit exposure to certain
types of ailments. This career requires an understanding of safety management
or engineering. A combination of a technical major and a business major
would be outstanding preparation for this career.
- Risk Manager: A career as a risk manager requires one to help
identify the risks that an organization faces and to make recommendations
for dealing with those risks. The recommendations may include the purchase
of insurance, adoption of precautionary measures or presentations to
upper management. Risk managers are involved in the management of employee
benefit plans. This career requires knowledge of the insurance industry
and of business practice as well as skill in making presentations to
upper management.
- Underwriter: A career as an underwriter requires one to decide
whether to provide insurance to applicants seeking coverage. An underwriter
evaluates an applicant's exposure to risk and decides whether an applicant
meets an insurer's standards. An underwriter may also become involved
in setting prices for insurance applicants.
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