What are the various types of jobs available in the insurance sector?

The insurance industry offers a variety of jobs in a variety of divisions. A person can work as an administrative officer, assistant administrative officer, development officer, insurance or composite agent, actuary, or underwriter. These positions may be in the finance, marketing, or underwriting divisions.

Nature of jobs in the insurance industry

There are a variety of jobs available in the insurance industry for people with various levels of education. The nature of employment can be broadly classified into two types: fixed and commission-based. Back-end assignments such as underwriting, claims settlement, and customer service are permanent. A commission agent, also known as an insurance agent, works solely on commission or incentives with no fixed salary.

Structure of the insurance industry

The insurance industry is divided into life and non-life insurance companies. Life insurance companies provide insurance coverage to the insured for all the risks associated with the life of the insured. Non-life insurance companies are also known as general insurance companies and provide various types of coverage to individual and corporate clients.

Insurance career

An insurance career can be rewarding and can lead to recognition for the right candidate. The insurance industry employs nearly three million people in the United States alone. There are jobs available ranging from entry-level positions such as insurance marketing agents to more specialized positions such as insurance underwriters. Other jobs in this industry include actuary, client service representative, ombudsman, and claims settlement specialist.

Career options in the insurance sector

The following are the various career paths available in the insurance industry:

• Actuary: An actuary employs statistics to assess the likelihood of a risky event. The entire insurance concept is based on the risks associated with the occurrence of specific events. There would have been no need for insurance if there had been no risk. As a result, it is critical that the risks of occurrence be calculated as precisely as possible. This career path is appropriate for those with a mathematical or statistical background.
• Underwriter: The term underwriter technically refers to the person who assumes the risk of another person in exchange for monetary benefits. However, an underwriter's role in the insurance industry entails determining the amount of insurance liability that should be paid to the insured. Candidates from the finance industry should apply for this position.
• Commission agents: Commission agents are the insurance industry's backbone. Despite the fact that this is an entry-level position, it is one of the most important roles in the insurance industry. Insurance sales agents are the first point of contact for customers. As a result, insurance sales agents can be considered the true representatives of insurance companies. This is a marketing position that involves selling insurance policies to prospective clients.
• Claims settlement: A career as a claims settlement specialist necessitates attention to detail. A claim settlement specialist ensures that the insured receives the appropriate amount of compensation on time. He is in charge of reviewing the claims that will be submitted to ensure that all documentation and claim submission guidelines have been followed.
• Customer service: A prompt customer service experience is imperative to beat the competition. The insurance industry is a services-based industry. So, the role of a customer service specialist assumes great responsibility.
• Marketing: The existence of a large number of insurance companies has greatly increased competition in the insurance sector. Because of the increased competition, every company has an aggressive marketing structure in place to generate increased revenues from the sale of insurance products. Marketing is a viable career path in the insurance industry.
• Legal: Several disputes continue to arise between insurance companies and between the insurance company and the insured. As a result, a person who has studied law may become a member of an insurance company's legal team.

Aside from the jobs mentioned above, several other career paths are available in the insurance industry. Insurance workers include policy processing clerks, surveyors, appraisers, claims adjusters, and brokers.

Qualification needed for a career in insurance

There is a career path available in the insurance industry for people with any educational background, whether it is Statistics, Finance, Marketing, Law, or any other field of study. One can find employability in this sector based on one's level of education. A high school diploma is sufficient for entry-level positions such as insurance sales agents or processing clerks. Other job positions necessitate at least a Bachelor's degree. Certain functions, such as underwriters, require in-depth knowledge of a specific insurance branch, such as health insurance, fire insurance, or life insurance. For those interested in an insurance career, several certificates, diplomas, and Master's level courses are available.

Skills needed for a successful career in insurance

Aside from the necessary educational qualifications, a person should have specific skills for a successful insurance career. The following are some of the skills that increase one's employability in the insurance industry:

• Empathy: Insurance sales involve the sale of an intangible product. It is simple to sell products that prospective customers can see or touch. When it comes to conceptual sales, insurance professionals must be empathetic. Only then will they be able to properly serve their customers.
• Patience: Customers must be dealt with on a daily basis by insurance professionals. Customers do not all have the same temperament. As a result, insurance professionals must maintain a calm personality when dealing with clients.
• Detail-oriented: Regardless of the job role that a person is assigned, a lot of calculations and policies must be followed, whether it is underwriting, claims settlement, insurance sales, insurance survey, or any other role. So, if a person wants to have a successful career in insurance, they must be detail-oriented.
• Team player: No department within an insurance company can function in isolation. Each division is reliant on the others in order to function properly. As a result, a person must be able to work and perform well in a team setting.

Salary structure in the insurance sector

Entry-level positions, such as insurance sales agents, have an average salary of $50,000. Underwriters earn an average of $90,000, while marketing professionals earn up to $80,000. The point here is that certain positions do not require professional education and do not pay well.

Specialized career path in the insurance sector

For students interested in pursuing a career in insurance, the career path is divided into three stages. The licentiate is the first stage, and it is an entry-level exam that allows successful candidates to begin working in the insurance industry. Following that is the associate stage, followed by the fellowship stage. As a licentiate gains work experience, they can sit for the associate exam, which will allow them to advance in their careers. Insurance is a people-centered industry. As a result, because theoretical knowledge is not always useful, many things must be learned on the job.

Composition of the workforce in the insurance sector

The insurance industry employs people of all ages and educational levels. Millennials are looking for work in the insurance industry in greater numbers than ever before. This could be due to a flexible educational requirement and a good salary. Insurance sales representatives can be of any age. As a result, this job role attracts a lot of housewives and people looking for extra money.

Employers in the insurance sector

The insurance industry employs people of all ages and educational levels. Millennials are looking for work in the insurance industry in greater numbers than ever before. This could be due to a flexible educational requirement and a good salary. Insurance sales representatives can be of any age. As a result, this job role attracts a lot of housewives and people looking for extra money.

Context and Applications

This topic is significant in the professional exams for both undergraduate courses & postgraduate courses and competitive exams, especially for:

• Masters of Business Administration (Finance)
• Bachelors of Business Administration (Finance)
• Life Office Management Association Certification

Practice Problems

Common Mistakes

Students often mistake a career in the insurance industry to be restricted to the sales or customer service roles. However, there are several options available for students. Students from all areas of education can find employment in the insurance sector.

Related Concepts

While studying this topic, it is important to read the following topics to get a better knowledge:

• Career in sales
• A career in health insurance
• Career in Finance