Straight Talk About Careers in Insurance

What you should know about career opportunities in the insurance industry

Straight Talk About Homeowners Insurance If you're looking for a career that is exciting, varied, rewarding and gives you a chance to help people, then you should consider a career in the insurance business.

While some people may have the idea that the insurance industry is dull, nothing could be further from the truth.

We won't exaggerate what our industry has to offer. We'll simply tell you why a career in the insurance industry might be for you. Then, you can decide for yourself.

An Industry of Opportunity

The insurance industry is divided into three broad segments: life insurance, health insurance, and property and casualty insurance.

Each has many areas of specialty, especially property and casualty insurance, which provides coverage against almost every peril. Auto, homeowners, fire, flood, crop, earthquake, malpractice, liability, workers compensation are all forms of property and casualty insurance.

Many Chances to Advance

The insurance industry is diverse, with many specialized positions and career paths. Because it has a strong entrepreneurial spirit and is always evolving, entry is easier and advancement is more closely related to performance.

If you want excellent income potential, you can find it in the insurance business --with hard work and determination. If you want to help people in need or make your community a better place to live, it's also an excellent choice. And if you want to prosper and help your neighbors at the same time, you've come to the right place.

Career Paths

Like many other kinds of business, the insurance business employs receptionists, secretaries, information systems specialists, accountants, personnel administrators and others.

It also offers some highly specialized careers not found in other industries which require varying levels of technical skills and training.

Although college educations will often speed a person's advancement, it is still possible for a high school graduate to enter the insurance business in any number of beginning jobs and, by taking advantage of continuing education opportunities, rise to high executive positions.

Here are some occupational possibilities:

Agent and Broker

In the insurance business, agents and brokers sell the policies. Some agents work for one company exclusively and are paid a salary or a salary plus commissions. Others are independent agents who represent several companies and get a commission for each sale.

Agents and brokers tailor programs to fit the individual needs of their clients and help when they have claims. In recent years, many have expanded their role as advisors to their clients to include financial planning and risk management.

A college degree is not required to be an agent or broker, but you must be licenced in each state where you do business. Each state has its own licencing requirements which usually include certified education courses, continuing education requirements and written exams.

Customer Service Representative

Customer service representatives, or CSRs, are the backbone of the insurance business. They deal directly with policyholders filing claims. The CSR's job is to expedite the claims process, but it can include such duties as assisting agents and underwriters. A degree is not required, but specialized training courses are needed.

Additional Agency Careers

Career paths in an insurance agency are not limited to sales. Agencies of all sizes need people to handle billing and accounting; many also hire personnel specialists. Computer programming and maintenance skills and automation/data entry abilities are in great demand with both agencies and companies. Opportunities also exist for clerical and secretarial staff and receptionists.

Actuary

An actuary is a financial analyst, planner and forecaster. Actuaries work for insurance carriers, rating bureaus, associations and state insurance departments. They study the frequency of events which cause losses, calculate the chances of these events recurring, estimate the cost of the resulting damage and injuries, and recommend the price to charge to insure against each risk. A college degree and expertise in mathematics are important requirements.

Underwriter

A lot rides on decisions of an underwriter, who determines whether or not each individual application for insurance coverage should be accepted. The underwriter weighs the risk for each applicant, based on statistics produced by actuaries and his or her own judgement. A college degree is not always required for initial employment, but is important for those who aspire to positions of responsibility.

Field Representative

Company field representatives provide liaison and support to those selling a company's policies. Field representatives make sure agents and brokers understand the company's policies and practices; it is often their job to resolve conflicts among the company, its policyholders and its independent sales force. This position requires a lot of travel and an ability to work well with people. A college degree is often required.

Adjuster

Adjusters go to the scene of losses to inspect damaged or destroyed property. They estimate the cost of repair or replacement and determine whether losses are covered under a policy. Adjusters must be tactful, patient and adept at resolving conflict. They may work for companies, adjusting organizations or be in business for themselves. A college degree is not required but is desirable.

Loss Control Specialist

Loss control specialists are sometimes called safety engineers. They work closely with large industrial firms, cities and public institutions, designing programs to prevent losses before they occur. Loss control specialists usually work for large insurance companies and associations. A degree in loss control is usually required.

Risk Manager

The risk manager is similar to a loss control specialist but works for a corporation rather than an insurance company. In addition to identifying various types of risks and working to eliminate them, the risk manager buys insurance to cover risks that cannot be entirely eliminated. A degree and an extensive knowledge of insurance products are customary requirements for risk managers.

The Future?

Anyone choosing a career needs to know if there are opportunities to advance. While it's impossible to predict whether or not individual companies, agencies or jobs will always exist, some things are certain:

The U.S. population will continue to grow, and the insurance business will grow along with it. Why? Everybody will always need some kind of insurance, in good times and bad.

Is It For Me?

Only you can decide whether the insurance business is for you. We've given you an honest overview. If you think you might be interested in an insurance career but still aren't sure, there's an excellent way to find out more.

Talk to one of your neighbors and friends: the Professional Insurance Agent in your community.