Employment Prospects for Management Students in the Insurance Industry
Post liberalization in 2000, there has been tremendous growth in the Indian insurance industry, more particularly so in the life segment. The total life insurance premium underwritten by the industry has grown from Rs. 26,250 cr. in FY 99-00 to Rs. 291,000 cr. in FY 11-12. India has the largest in-force policies in the world and is among the worldEUR(TM)s Top 10 largest insurance markets by collected premium.
Despite this growth, insurance penetration in India is still very low as compared to other countries, including the developing ones. A large number of Indians are not insured. Among those that are insured, most are under-protected. This is despite the fact that the need for protection has continuously grown, whether it is about sustaining current lifestyle, paying off existing loans, or taking care of childEUR(TM)s education, marriage, etc. In addition, the Tier II, Tier III towns and the rural markets EUR" where most of India resides - continues to remain unprotected/ under protected and underserved. This untapped potential throws up tremendous opportunities for the growth of the industry and the resultant employment opportunities in this sector.
The industry already employs more than 25 lac people in various roles and as the population ages and wealth grows, the demand for insurance professionals will continue to increase. Insurance is a relatively stable industry that provides varied and many career development and growth opportunities across different functions EUR" Sales, Marketing Actuarial, Operations, Finance, IT, HR, Customer service, Legal, Compliance etc. Prospective employees can pick and select areas that interest them and where they have built basic knowledge/capability.
The fundamental responsibility of this industry is to ultimately help people when they need it most. Hence, jobs in insurance involve helping people realize the importance of life protection so that they can secure the financial well-being of their families in case of any eventuality. There is nobility in this profession and people who choose to enter this sector find it personally rewarding.
Many a times, people are quick to pursue a career path and take short term decisions that ultimately may not enable them to achieve their professional, personal and financial aspirations. It is important therefore that prospective employees who are keen to join the insurance industry understand the kind of career options available in the industry.
Roles that are more unique to the insurance industry include:
Actuaries: Actuaries use their analytical skills to predict the risk of writing insurance policies on property, businesses and people's lives and health. Actuaries are a crucial part of the insurance process because they use statistical and mathematical analysis to determine the risk of providing coverage. To do their job effectively, actuaries need to be up-to-date on general societal trends and legislative developments which may affect risk, and also ensure adequate risk mitigation measures are in place. They also need to keep themselves updated on the latest calculating techniques and tools. With the market becoming more competitive, the scope of actuarial work has expanded tremendously.
Underwriters: Underwriters 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.
Insurance Agents/ Advisors: Insurance agents and advisors are an integral arm of insurance companies to reach out to and help individuals, families and businesses select insurance policies that provide the best protection for their lives, health and property. Among insurance company agents, there are captive agents who work exclusively for one company and there are brokers who represent many companies. Insurance agents understand customerEUR(TM)s needs, offer products that address these needs, provide after sales service to customers, prepare reports, maintain records and in the event of a loss, help policy-holders settle their insurance claims. An understanding of how to assess clientsEUR(TM) needs and offer relevant insurance solutions is essential to succeed in this role. People who are hardworking, confident, have winning abilities, and possess good communication and interpersonal skills are well suited to take up a career as an insurance agent/ advisor.
Insurance is a high financially rewarding sector. Commissions and incentives are important components of an employeeEUR(TM)s and agentEUR(TM)s compensation structure. The better one performs, higher is the commission/ incentive and chances of fast career growth.
The Insurance industry has, and continues to be an attractive sector for employment which provides one of the fastest career growth and development opportunities.
Despite this growth, insurance penetration in India is still very low as compared to other countries, including the developing ones. A large number of Indians are not insured. Among those that are insured, most are under-protected. This is despite the fact that the need for protection has continuously grown, whether it is about sustaining current lifestyle, paying off existing loans, or taking care of childEUR(TM)s education, marriage, etc. In addition, the Tier II, Tier III towns and the rural markets EUR" where most of India resides - continues to remain unprotected/ under protected and underserved. This untapped potential throws up tremendous opportunities for the growth of the industry and the resultant employment opportunities in this sector.
The industry already employs more than 25 lac people in various roles and as the population ages and wealth grows, the demand for insurance professionals will continue to increase. Insurance is a relatively stable industry that provides varied and many career development and growth opportunities across different functions EUR" Sales, Marketing Actuarial, Operations, Finance, IT, HR, Customer service, Legal, Compliance etc. Prospective employees can pick and select areas that interest them and where they have built basic knowledge/capability.
The fundamental responsibility of this industry is to ultimately help people when they need it most. Hence, jobs in insurance involve helping people realize the importance of life protection so that they can secure the financial well-being of their families in case of any eventuality. There is nobility in this profession and people who choose to enter this sector find it personally rewarding.
Many a times, people are quick to pursue a career path and take short term decisions that ultimately may not enable them to achieve their professional, personal and financial aspirations. It is important therefore that prospective employees who are keen to join the insurance industry understand the kind of career options available in the industry.
Roles that are more unique to the insurance industry include:
Actuaries: Actuaries use their analytical skills to predict the risk of writing insurance policies on property, businesses and people's lives and health. Actuaries are a crucial part of the insurance process because they use statistical and mathematical analysis to determine the risk of providing coverage. To do their job effectively, actuaries need to be up-to-date on general societal trends and legislative developments which may affect risk, and also ensure adequate risk mitigation measures are in place. They also need to keep themselves updated on the latest calculating techniques and tools. With the market becoming more competitive, the scope of actuarial work has expanded tremendously.
Underwriters: Underwriters 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.
Insurance Agents/ Advisors: Insurance agents and advisors are an integral arm of insurance companies to reach out to and help individuals, families and businesses select insurance policies that provide the best protection for their lives, health and property. Among insurance company agents, there are captive agents who work exclusively for one company and there are brokers who represent many companies. Insurance agents understand customerEUR(TM)s needs, offer products that address these needs, provide after sales service to customers, prepare reports, maintain records and in the event of a loss, help policy-holders settle their insurance claims. An understanding of how to assess clientsEUR(TM) needs and offer relevant insurance solutions is essential to succeed in this role. People who are hardworking, confident, have winning abilities, and possess good communication and interpersonal skills are well suited to take up a career as an insurance agent/ advisor.
Insurance is a high financially rewarding sector. Commissions and incentives are important components of an employeeEUR(TM)s and agentEUR(TM)s compensation structure. The better one performs, higher is the commission/ incentive and chances of fast career growth.
The Insurance industry has, and continues to be an attractive sector for employment which provides one of the fastest career growth and development opportunities.
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