FSC - Careers in Insurance Lesson

Careers in Insurance

Insurance is over a trillion dollar global industry. Moreover, you can begin your career in insurance with or without a college degree. Insurance offers a wide variety of careers that require a great variety of skills and interests. Here we will list some of the common insurance careers.

Agent: The insurance agent is usually the first contact a person has with an insurance company. The agent helps individuals, families, and businesses select policies that help to protect their health, property, and life. In addition to insurance policies, agents also sell financial planning services. Agents must be licensed in the state where they sell insurance. Job opportunities for agents are best for those with college degrees, an ability to sell, and excellent interpersonal skills.

Adjuster: The adjuster works for the insurance company and their primary role is to investigate claims, negotiate a settlement, and authorize payment to the insured who has suffered a loss. They must determine if a customer's policy covers the loss and how much should be paid under that policy. Adjusters plan and schedule the work that is required to process the claim. The licensing requirements for adjusters vary widely from state to state. Most states require both licensing and continuing education to be a claims adjuster. Adjusters come from a wide variety of backgrounds which may be helpful in settling claims. For example, someone with architectural training might do very well as an adjuster for a homeowner's claim.

Actuary: The Actuary analyzes statistical data, such as mortality, accident, sickness, disability, and retirement rates and constructs probability tables to forecast risk and liability for payment of future benefits. They may also determine insurance rates required and cash reserves necessary to ensure payment of future benefits. Actuaries need a strong background in math and a college degree. Companies require an actuary to pass the actuarial exam which tests their knowledge of calculus, probability, and statistics.

Broker: Similar to an agent, a Broker sells insurance policies to the public. Whereas an agent works for one insurance company, a broker will represent several companies. Like an agent, a broker must be licensed in the state where they sell insurance. Brokers are usually self-employed.

Underwriter: Underwriters decide if insurance will be provided and if so, at what cost. Underwriters use sophisticated computer software to determine if a risk is acceptable. Doing this correctly is important to the insurance company. If their underwriting is too conservative, they will lose business to competitors, if it is too liberal they will suffer a loss from paying out too many claims. Underwriters must pay attention to detail and have good judgment. Most insurance companies prefer underwriters to have a college degree in business or finance.

Policy and Claims Clerks: Clerks process new insurance policies, modifications to existing policies, and claims. Clerks obtain information from policyholders to verify the accuracy and completeness of information on claims forms, applications and related documents, and company records. They then update existing policies and company records to reflect changes requested by policyholders and insurance company representatives. These jobs can usually be entered into with a high school diploma.

Other Positions: Like all industries, insurance companies have a wide variety of career paths available. From information technology to human resources, from advertising to accounting, you can find almost any type of career that might interest you in the insurance industry.

Education, Skill, and Licensing Requirements

While entry level jobs in the insurance industry can be had with only a high school diploma, most of the upper level jobs require a minimum of a four year degree. The type of degree is somewhat less important, because the industry hires people from a variety of college majors.

Because you work with people, communication and interpersonal skills are extremely important in the insurance field. An insurance career also requires initiative, sales ability, and good judgment. No matter what area of insurance you choose, you will need to have solid computer skills. Take a look at the details belows.

Licenses are issued by the Office of insurance and Safety Fire Commissioner.

Self-Assessment