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Embarking on an insurance career

Insurance today plays a large role in our credit system, protecting millions of home, auto and business owners from the risk of losing everything they have.

A career in insurance is both diverse and rewarding, always in demand and one that offers good progression and benefits. Remember, risk is a constant in everyone's life; therefore, protection against risk is a constant need.   

A career in insurance

Insurance jobs pay well and usually don't require the long hours of some other financial services sectors. Yet many job seekers who want to use their analytical skills or get into financial services never seriously consider these attractive career options.

Insurance is a career where you can really make a difference in the lives of your clients. The more you help others, the more you earn. The dowdy image once attached to insurance is slowly disappearing, replaced by a more upbeat, sharper image.

The 1990s was the era of redundancy in insurance but mergers came into force again towards the latter end of the decade when Commercial Union and General Accident joined forces to become CGU, and subsequently CGU merged with Norwich Union.

Broking and loss adjusting jobs 

Insurance companies tend to be large in terms of both employees and assets because they need to take in a lot of premiums from a variety of customers in order to diversify and lower their risk of being put out of business by a small number of large claims.

In general, the insurance market is split into two sectors - the broking or company market and the loss-adjusting market. In the broking market, an individual would go to the broker to get the best quote, and the broker would go to the company market who perform the underwriting or claims analysis.

The loss adjusting markets assess the claims on-site. For example, they would go out to inspect a burnt-down company or a house.   

Job variety in insurance

  • Underwriters determine how much overall risk a buyer will add to the company's business and calculates the premium at which to insure a buyer
  • Actuaries assess the likelihood of various types of accident by performing a statistical analysis of anything deemed - the use statistics determines policy prices, as well as to whom policies should be sold
  • Agents actually sell the policies
  • Claims adjusters decide what, if anything, the company will pay on claims
  • Risk managers determine and help implement policies and processes to help clients avoid making claims
  • Insurance companies also recruit in marketing, business development and corporate finance 

How do I get into insurance?

The minimum entry requirement for newcomers to insurance is A-levels. Graduates are usually placed on fast-track trainee programmes or in administration roles.

Occasionally, people from a financial background can get into the industry, but this usually requires learning the 'tricks of the trade' at whatever your age or level of experience. So, if you are changing careers into insurance, be prepared to start as a trainee and be paid as one! Starting salaries range from £10-15,000 for A-level leavers, to £13-15,000 for graduates. London salaries can be much higher.   

To succeed, you need to communicate well, be multi-skilled and possess confidence do well in this industry. However, if you enjoy sales, have a strong quantitative bent, or like to investigate mysteries, then consider looking for an insurance job.

It is also a great field to consider if you are looking for good benefits, reasonable hours, and a sense of belonging to an exciting industry.

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