Insurance
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The insurance industry works to guard clients' property, life, body, et cetera, from harm or loss that results from stipulated events, such as injury, disablement, accident, flood, and other such causes. This protection is commensurate with the payment made by the client to the insurer in a contractual agreement. The business of insurance is populated primarily by insurance carriers and insurance agencies, or brokerages. Carriers are large corporations that offer insurance to clients and take on the ramifications of the risks made clear in the policies they offer; agencies and brokerages sell such policies for the carriers. Other companies offer additional insurance services such as as claims adjustment, pension funds, and risk management. Insurance companies invest the money from policyholders into premiums, which are portfolios that demonstrate an insurance company's financial holdings and real estate investments, the money received from which will pay insurance holders' claims.
Preparation for a career in insurance can begin with just a high school diploma, but employers are now demonstrating a preference for those equipped with either an associate or a bachelor's degree diploma. After having earned this postsecondary education, most insurance hopefuls are recruited by companies and are trained on the job.
The majority of insurance companies strongly encourage their employees to continue their education in communication skills and industry expertise. Certification and licensing are widespread and extremely important to earn and maintain while working in insurance. Insurance salary figures are reported by hourly wage, not yearly sum. Some positions, such as insurance sales agents, depend heavily on commission in order to earn their pay.
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Accredited Schools Offering Insurance Degrees by Location
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Career Specializations
The specializations that can be entered into by insurance professionals are primarily those that can be sold as different types to potential policyholders. Among these types can be included fire, renting, auto, home, flood, and life insurances. Other concentrations include:
- Sales and Marketing Management: These individuals help to attract the public in insurance offerings, and also monitor the sales results of various agents.
- Claims Adjusters, Appraisers, Examiners, and Investigators: Those in this concentration assess whether or not a given claim is covered by a policy, estimate payment, and delve into the circumstances of a given claim.
- Insurance Sales Agents: These are the professionals, also known as producers, who interact with current clients and attempt to field new ones for the agency or brokerage.
Degree Levels
- Associate Degree in Business Administration or Insurance: 2 years to complete
- Bachelor's Degree in Business Administration or Insurance: 4 years to complete
- Completion of the Series 6 Examination*
- Completion of the Series 7 Examination*
* Study is required to earn these titles, and one can study indefinitely until ready to take the exam.
Education & Certification Requirements
As the insurance industry is reeling from damage brought on by the economic meltdown, positions for new employees are increasingly few and far between. Most employers are reserving new spots for those with associate or bachelor's degrees in the field. With one of those diplomas in tow, an employer will then enlist a new hire to participate in an intense period of on-the-job training.
In order to actually sell insurance, it is required that these aspirants take and pass the Series 6 (mutual funds or variable annuities) or Series 7 (general securities representation) exam, as proctored by the Financial Industry Regulatory Authority (FINRA). State licensing is also mandated to sell insurance; life and health insurance require one license, while property and casualty coverage demand another.
All underwriting positions in insurance demand certification. The Insurance Institute of America, the American Institute for Chartered Property Casualty Underwriters, and the American College all offer this certification. State licensing is, again, a virtual obligation in most every state, in order to legally be granted the authority to participate in insurance activity. (BLS)
Salary Information
Pay varies enormously in insurance, depending on not only experience, but also on the type of position held. Underwriters, for instance, are rewarded with a stunning $27 or more per hour. Claims adjusters, examiners, and investigators receive $26 hourly, and most insurance sales agents reap $22 with every hour served. Administrative positions in the insurance industry pay between $12 and $19 an hour. Independent sales agents are paid by commission, however, whereas other sales agents may configure a combination of both commission and salaried compensation for their work. No matter the type of agent, the attainment of experience can speedily increase the amount of pay received. (BLS)
Job Outlook
Withstanding the damage brought on by the near collapse of the economy has rather devastated the scale of employment opportunities in insurance. Estimates predict that the number of jobs in the insurance industry will indeed growth, but only at the limp pace of three percent by the year 2018. This slow increase has essentially mandated that anyone considering a career in insurance first earn a bare minimum of an associate degree, with a bachelor's degree highly preferable. The ever increasing reliance of the auto insurance sector on the Internet has effectively ruled out the possibility of many new employees entering that field. Those who demonstrate expertise in a wide variety of insurance will also be able to capitalize on the diminutive increase in demand for employees. (BLS)
Related Careers
The banking industry, just like insurance, has suffered a massive blow on account of the economy. Nevertheless, new employees are still being taken on in this financial sphere. The best and most open positions include entry-level spots, such as those for bank tellers. This said, holding a bachelor's degree or an MBA diploma can make one into a marketable candidate for positions like corporate accounting or executive business underwriting.
