This action might not be possible to undo. Are you sure you want to continue?
Jobs in insurance sector in India are continually on the rise as more and more people are becoming aware of the critical need to insure their life and properties. The insurance sector covers a wide spectrum and includes life insurance, health insurance, travel insurance, fire and theft insurance, marine insurance, transit insurance, motor vehicle insurance etc. Jobs in insurance companies can lead to promosing careers for all finance professionals in India as there is a 15-20 percent growth rate per annum in the insurance sector in India, This apart, with the entry of private companies in both life and general insurance sectors, insurance jobs in India are available aplenty. Most insurance jobs in India carry attractive salary packages, handsome incentives and promising career growth opportunities. People aspiring for pursuing a career in the insurance industry can undergo a course in insurance management that will give him / her an edge in the job market. Insurance management courses are offered by several renowned institutes across the country. Anybody can avail an insurance course after graduation. Some insurance management institutes in India conduct admission test while some other institutes select students for the course through CAT and MAT entrance tests. Experienced employees in insurance companies can also opt for insurance managementprogrammes as there arer institutes that offer correspondence and parttime courses for working executives.
Careers in Banking and Finance and Insurance
Insurance companies deal broadly in four different areas - 1) Life insurance2) Health insurance, 3) Property and 4) Accident insurance. Companies may specialize only in life insurance or in one or all the three types of above-cited general insurance coverage. Entry of many Indian companies as well as foreign companies has opened up job opportunities galore in the insurance sector. In an insurance company, a person may take up a job in any of the following areas - Administration wing where employees deal with the registry of claims, Development wing where one is involved in marketing and obtaining new business, Accounts wing where professionals deal with the management of funds and maintenance of accounts, Investment Department where professionals are entrusted with responsibility for the investment of funds of the insurance company. Besides there are inspectors who travel to places and inspect the client¶s insured property and assess the damages and admit the claims. Any commerce graduate wishing to serve in the insurance sector can opt for the position of back office support. If you are an extraordinarily intelligent person and adept in numbers, then you can opt to become an Acturial which is a coveted highly-paid job in the insurance industry. An actuary has the responsibility for solving a wide range of financial problems related with insurance investments, financial planning and management. Graduates in mathematics or statistics are best suited to become an Actuary.
It is the job of an actuary to collate and analyze facts, estimate risks and make decisions in financial planning. Actuaries are the kingpins who design insurance plans, determine the premium, monitor the profitability and recommend revisions from time to time.
Entry of many Indian companies as well as foreign companies has opened up job opportunities galore in the insurance sector. Apart from the government owned giant Life Insurance Corporation of India, the other prominent companies in the life insurance business are - Allianz Bajaj Life Insurance, HDFC Standard Life Insurance, Birla Sun Life Insurance, ICICI Prudential Life Insurance, Max New York Life Insurance, Metlife India Insurance, Tata AIG Life Insurance, Aviva Life Insurance Company, SBI Life Insurance and ING Vysya Life Insurance. Apart from the government-owned New India Assurance, Oriental General Insurance, National Insurance and United India Assurance in the general insurance sector, the other prominent players are - Bajaj Allianz General Insurance, ICICI Lombard General Insurance, IFFCO Tokio General Insurance, Royal Sundaram Alliance, TATA AIG Life Insurance and Reliance General Insurance.
India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerisation of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies. The insurance agents still remain the main source through which insurance products are sold. Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional moneyback policies, which is not considered very appropriate for long-term protection and savings. There is lots of saving and investment plans in the market. However, there are still some key new products yet to be introduced - e.g. health products. The rural consumer is now exhibiting an increasing propensity for insurance products. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a study conducted by MART the results showed that nearly one third said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and credibility among the rural populace. The perceived benefits of buying a life policy range from security of income bulk return in future, daughter's marriage, children's education and good return on savings, in that order, the study adds.
Well because of all these reasons there is a high need for trained individuals in this sector.
There are a number of options to choose from for a career in Insurance. An insurance company will have openings in the marketing, distribution, actuarial, underwriting, operations and investing departments.
Slide 5: Most of the jobs in Insurance sectors are 1)Actuaries 2) Underwriter Surveyor Investment Marketing & Distribution Third Party administrator Insurance investigation and fraud detection
Slide 6: Job Prospects:Insurance is the new sunrise industry and a large number of openings are generally available. A plain graduate in the area of marketing and sales can expect anything between 8000/- to 15000/- per month plus incentives to begin with. Highly qualified professionals in the area of actuarial science are much in demand and command a very lucrative career. Their starting salary is the region of 50000/- and more per month and rises as more and more experience is gained. Most of the companies pay a very good premium to the qualification and offer incentives to retain the right people. Also the salaries rise exponentially with right kind of experience and qualifications.
Slide 7: Career Opportunities in Insurance Sector- Actuary With the opening of the Indian economy and insurance sector as well, there is a tremendous potential for an actuary not only in Indian insurance sector but also worldwide, given that, the regulations now prescribe that every company must have an appointed actuary. The actuary basically is a mathematician or a statistician, who works out the premium rates, the product design, and in a sense also decides on the solvency margin of insurance companies and thus the very growth and future of the company depends upon his accurate assessment. The job profile of an actuary makes him one of the most sought after and revered insurance professional and also commands excellent pay and perks of office.
Slide 8: We have an Actuarial Society of India in Bombay which conducts these professional examinations and currently, more than 1200 members are pursuing this education.´
Slide 9: Job Profile Evaluates the risk for companies to be used for strategic management decisions and choosing the right alternative. Actuaries use their analytical and mathematical skills to predict the risk of writing insurance policies through the use of mathematical, statistical and economic models. An actuary not only fixes the premium rates for new products, but also revises both products and prices. They calculate costs to assume risk, for example how much to charge policyholders for life or health insurance premiums?
Slide 10: Who can qualify Mathematics and Statistics graduates can try the actuarial course. The eligibility requirement is higher secondary education.
Slide 11: Job ProspectsThe Actuary belongs to the top management team thus the compensations are very attractive for example in U.S., the salary will be more that 80000 US dollars per annum. The field is not only relevant to insurance industry but to the whole financial sector. Without an actuary, an insurance company cannot function. In India also with opening of the insurance sector and a large number of insurance companies entering the fray, the times were never so good for insurance professionals. There is a huge demand and supply gap especially in the top end segment of the market and actuary stands out as one such sector. A qualified and experienced actuary can easily command a starting salary of upto Rs. One lakh per month or more and being part of top management, is privy of decision making and authority.
Slide 12: Insurance- Surveyors and Underwriters There is an increased demand and interest in the field of survey and underwriting in the insurance sectors. An underwriter is the person who makes a decision whether to grant insurance to a person or not and if so, on what terms and conditions. His role is to assess the risk and determine the premium rates that should be charged from him.
Slide 13: UNDERWRITERSWork Profile Insurance underwriters review insurance applications and decide whether they should be accepted or not based on the degree of risks involved in insuring the people or objects. In the life insurance business, an underwriter is expected to filter the "bad or substandard lives". Whereas, in the general insurance segment, he takes care of risk management . Underwriters give and obtain information, explain policies and quote rates to medical personnel, other insurance companies, or field representatives.
Slide 14: SURVEYOR The surveyor usually functions in non life business and not in life insurance business. The surveyor¶s role is to assess the loss that has been reported by the insured in respect of his insured property or asset. The insurance business operates on the principle of indemnity which means putting the customer in same position financially in which he was before the loss happened. As there is a tendency on the part of customer, to benefit out of an insurance transaction, the surveyor puts a check on that and assesses the loss. He then gives a report to the insurance company and based on the surveyor¶s report the company settles the claim.
Slide 15: Work Profile Surveyors are professionals who assess the loss or damage and serve as a link between the insurer and the insured. They usually function only in non life business. Their job is to assess the actual loss and avoid false claims. Surveyors like agents, are not employees but are independent professionals hired by the insurance company.
Slide 16: Who can qualify An insurance surveyor must possess a license issued by the Controller of Insurance under Ministry of Finance, Govt. of India. Licenses are issued to technically qualified people who are engineering graduates or diploma holders in any discipline, Chartered Accountants, Graduates in Medical Sciences. They have to undergo a one-year training program with an existing surveyors firm and thereafter pass an exam held by the Insurance Institute of India. A surveyor after obtaining the license may be empanelled by any or all of the insurance companies.
Slide 17: Insurance Sector- Investment management, Marketing and Distribution and Third Party Administration INVESTMENT MANAGEMENT Insurance is the new buzzword for job aspirants especially with the advent of a large number of insurance companies entering the Indian market. There are plenty of opportunities in various fields within the sector depending upon educational qualifications and experience. The success of insurance companies to a great extent depends upon their solvency ratios and the kind of investment they make based on premiums collected from insured persons. Thus the investment operations of insurance company is a very old but important function, given that insurance business is 300 years old and because an insurance company collects a lot of funds, they need to be invested wisely without jeopardizing public security. Every company has a few investment experts who will guide the operations, most of which may done by asset management companies where a lot of opportunities exist for professionals.
Slide 18: MARKETING & DISTRIBUTION In the marketing area the potential is unlimited. The insurance business in India is yet to grow to its full potential as still insurance penetration is pretty low. The requirements for agents or advisors who operate in th field is enormous and compensation is directly linked to the amount of business they bring for the company. A number of agents are earning very handsomely based upon their good performance. Since there are a large number of agents working in the field and bringing business for company, there is a also requirement for marketing managers and agency managers to guide, motivate and supervise them. More and more people are needed in marketing because it brings money for the company. Insurance agents may work for one insurance company or as independent agents selling for several companies. Insurance brokers do not sell for a particular company, but place insurance policies for their clients with the company that offers the best rate and coverage. Insurance agents and brokers can find openings in the health insurance sector, financial planning services, retirement planning counseling or even provide other services, for example sell mutual funds, annuities and other securities.
Slide 19: THIRD PARTY ADMINISTRATORS The other options are in health management as third party administrators, as well as back office processing as IT industry does for information technology i.e operations of other insurance companies worldwide could also be done in India. There are frauds in insurance, insurance investigation could be another choice for occupation, and call centers are also becoming a big business for marketing of insurance products, so that too could be an innovative career in the insurance industry.
Slide 20: Job ProspectsOpenings are available to graduates also in the field and starting remuneration is in the range from Rs. 15000/- and more. One can join the sector as a fresher and gain experience as well as qualifications while working in the sector. The openings are only increasing and this is the best time to be a part of the success story of the great Indian insurance sector.
ALL THE BEST««I = IntelligentN = KnowledgeableS = SuccessfulU = UnderstandingR = RationaleA = ActiveN = Never Give upC = ChallengingE = Effective : ALL THE BEST««I = IntelligentN = KnowledgeableS = SuccessfulU = UnderstandingR = RationaleA = ActiveN = Never Give upC = ChallengingE = Effective
Slide 22: A burning desire is the starting point of all accomplishment. Just like a small fire cannot give much heat, a weak desire cannot produce great results.