Insurance is a stable dynamic industry that provides a wealth of advancement and career opportunities. From administrative support to management programs, from sales to information technology, from accounting to customer service anything you want to do in business, you can do in the insurance industry. In today’s world, there is rarely any industry that is untouched by the Insurance. Therefore, thinking for making a career in this sector is indeed a good idea. The basic skill-sets required for the jobs in Insurance sector are excellent communication skills, persuasion abilities, interactive personality, etc.
Insurance is understood as a coverage by contract whereby one party undertake to indemnify or guarantee another against loss by a specified contingency, the amount for which it is insured. Insurance can therefore cover life, health, goods, equipments, travel or anything of value to the person.
There are two types of orientations primarily in any insurance company-
- Underwriting
- Investment
Underwriting is foreseeing the risk and deciding the premium accordingly. To this effect an underwriter writes a policy to benefit and secure the insurance company.
The investment aspect of insurance is equally demanding too. Typically in an insurance company there is a surplus of premium. This surplus has to be invested wisely. The insurance company therefore has substantial staff that is rigorously involved in bringing back profitable returns to the investment company.
It is a specialist field and students aspiring to carve a niche in the field need to have academic backing coupled with specialist knowledge in the field. Exposure to the field and experience will lead to even more inspiring avenues.
Career Prospectus
Insurance professionals with core competency and domain knowledge are in demand not only in India but abroad also. Any graduate with insurance skill can get employment opportunities in India as well as abroad. The persons with minimum 5 years experience in Insurance with domain skill and academic qualification has good scope for career development in abroad. Some sector in Insurance for employments opportunities are-
- Life Insurance Companies
- Agricultural Insurance company
- ·Non-Life Insurance Companies
- Mutual Funds
- Banks and Financial Institutions selling Insurance
- Insurance Brokers
- Insurance Corporate Agents
- Insurance Third Party Administrators ( TPA )
- Insurance Consultants
- Corporate Hospitals
- Healthcare Management Institutes
- IT, Software Developing & Testing
- BPO
Eligibility
The eligibility criteria for the various posts in the Insurance industry are :
Administrative Officer (AO) & Assistant Administrative Officer (AAO)- Graduate/ Postgraduate degree holders in any subject with minimum of 50% marks from a recognized university. Age between 21 and 28 years can apply for these posts. Recruitment is through a written examination and interview.
Development Officer - Graduates in any discipline from a recognized university. Age between 21 and 26 years can apply for the post of Development Officer. Selection is based on written tests in English and Mathematics and an interview. Selected Candidates have to serve as apprentice for a period of 1 year.
Insurance Agents - The minimum educational qualification for an insurance agent is 10 + 2. Before joining as insurance agents, one needs to undergo 100 hours of classroom training by the respective Insurance company based on the syllabus laid down by IRDA. After completion of training, they have to appear for the examination conducted by the Insurance Regulatory Development Authority (IRDA).
Composite Agent- sell both life and general insurance policies. Eligibility criteria is the same as that of insurance agents but they have to appear for one more test, also conducted by IRDA.
Insurance Surveyor : Licensed by the Controller of Insurance, the surveyor can be engineers, accountants, medical graduates etc. For the license of a surveyor, one has to possess any one of the following-
- Fellowship or Associate ship of the Institute of Insurance Surveyors and Adjustors (IISA), Mumbai.
- Fellowship or Associate ship of the Institute of Chartered accountants or Cost and Works Accountants.
- A degree or diploma in architecture from a recognized university or institute.
- A degree or diploma from a recognized institute of engineering.
- A degree or diploma in Naval Architecture.
Actuaries - Graduates with 55% marks in Mathematics/ Statistics/ Econometrics/ Computer science or MBA in finance, CA, CWA, MCA are eligible to join for actuary training. Training in this field can be pursued from the Actuarial Society of India (ASI), Mumbai or The Institute and Faculty of Actuaries, London, UK. To work as an Actuary, one has to pass an entrance exam conducted by these institutes twice a year, in May-June and October-November.
The post of Assistants, Typists, Machine Operators, Stenographer, Telephone Operators, Clerks etc. are open to graduates and school-leavers. Age limit is between 18 to 25 years. The candidates applying have to go through a written test and interview.
The eligibility criterion for recruitment to both the LIC and GIC is the same. Those who have passed the Licentiate Examination of the Insurance Institute of India, will get preference in LIC and GIC recruitments.
Remuneration
In private sector the salary scales are more lucrative. They take in management graduates to work mainly in the areas of marketing and sales with an initial salary ranging from Rs 15,000/- to Rs 25,000/- per month. In government sector the pay scale is as per government rules depending on each position. For each grade, along with their basic pay other allowances are also granted.
Commissions are the most common form of compensation for insurance agents and the amount depends on the type and amount of insurance sold, and whether the transaction is a new policy or a renewal. When they meet their sales goals bonuses are also awarded. Remuneration of agents are governed by IRDA regulations, while earnings of surveyors depend upon nature of work and assignments.
Actuaries are one of the most highly paid people in the insurance sector and the entry level salary is expected to be somewhere around Rs. 65000/- per month and with a few years experience they could earn a seven figure salary per annum, especially in the private sector. For the underwriters it is around Rs. 50000/- per month.