Careers in Insurance The insurance industry employs The insurance industry employs over 2.3 million workers over 2.3 million workers Wage and salary employment in the Wage and salary employment in the industry is projected to grow 10% industry is projected to grow 10% in the next ten years in the next ten years In 2004, weekly earnings for In 2004, weekly earnings for workers in the industry averaged workers in the industry averaged $756, considerably higher than $756, considerably higher than the average of $529 for all the average of $529 for all
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Careers in Insurance
The insurance industry employs over 2.3 The insurance industry employs over 2.3 million workersmillion workers
Wage and salary employment in the industry Wage and salary employment in the industry is projected to grow 10% in the next ten yearsis projected to grow 10% in the next ten years
In 2004, weekly earnings for workers in the In 2004, weekly earnings for workers in the industry averaged $756, considerably higher industry averaged $756, considerably higher
than the average of $529 for all private than the average of $529 for all private industryindustry
Careers in Insurance
How many insurance jobs can you name?How many insurance jobs can you name?
Actuary Actuary
Agent Agent
AttorneyAttorney
Broker Broker
Chemist Chemist
Claims AdjusterClaims Adjuster
Data Systems Manager Data Systems Manager
The Possibilities are Endless!The Possibilities are Endless!
Field Representative Field Representative
Financial ManagerFinancial ManagerLoss Control SpecialistLoss Control Specialist
Marketing Marketing
Nurse Nurse Operations Officer Operations Officer
Personnel Director Personnel Director
Physical Therapist Physical Therapist
Public Relations Manager Public Relations Manager
Risk Manager Risk Manager
Training Manager Training Manager
UnderwriterUnderwriter
Careers in Insurance
Growing areas of the insurance industry are Growing areas of the insurance industry are medical services and health insurance and medical services and health insurance and expansion into other financial services such expansion into other financial services such as securities and mutual fundsas securities and mutual funds
Office and administrative occupations Office and administrative occupations usually require a high school diploma, usually require a high school diploma, whereas employers prefer college whereas employers prefer college graduates for sales, managerial and graduates for sales, managerial and professional jobsprofessional jobs
Careers in Insurance: Operations
Three Segments of Insurance Three Segments of Insurance Company OperationsCompany Operations
MarketingMarketing
UnderwritingUnderwriting
ClaimsClaims
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
The process of identifying potential The process of identifying potential customers and then creating and customers and then creating and
supplying the products and services supplying the products and services they needthey need
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
Four types of distribution systemsFour types of distribution systems
•Independent agencyIndependent agency
•Exclusive agencyExclusive agency
•Direct writing Direct writing
•Direct responseDirect response
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
Independent AgencyIndependent Agency
Independent agents are in business for Independent agents are in business for themselves and usually represent several themselves and usually represent several different insurance companiesdifferent insurance companies
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
Exclusive AgencyExclusive Agency
Exclusive agents are in business for Exclusive agents are in business for themselves but are contracted to do themselves but are contracted to do business with only one companybusiness with only one company
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
Direct WritingDirect Writing
Direct writers are employed by an Direct writers are employed by an insurance company and rely on personal insurance company and rely on personal contact, direct mail, the internet, or contact, direct mail, the internet, or telephone contact with the customer for telephone contact with the customer for their businesstheir business
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
Direct ResponseDirect Response
Direct writers are employed by an Direct writers are employed by an insurance company and rely solely on insurance company and rely solely on direct mail, the internet, or telephone direct mail, the internet, or telephone contact with the customer for their contact with the customer for their businessbusiness
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
AdvertisingAdvertising
Insurance companies use traditional Insurance companies use traditional advertising campaigns such as television, advertising campaigns such as television, radio, magazine, mail and the internetradio, magazine, mail and the internet
Insurance companies also rely on local Insurance companies also rely on local agents to advertise the companyagents to advertise the company
Careers in Insurance: Operations
Insurance MarketingInsurance Marketing
Marketing ManagementMarketing Management
Activities include producer supervision, Activities include producer supervision, producer motivation, and product producer motivation, and product management and developmentmanagement and development
Careers in Insurance: Operations
Insurance UnderwritingInsurance Underwriting
Determines:Determines:
•who an insurance company’s customers will bewho an insurance company’s customers will be
• what the companies products will be what the companies products will be
•at what price those products will be soldat what price those products will be sold
Careers in Insurance: Operations
Insurance UnderwritingInsurance Underwriting
UnderwriterUnderwriter
•Evaluates applicants for insuranceEvaluates applicants for insurance
•Selects those that are acceptable to the Selects those that are acceptable to the insurerinsurer
•Price coveragesPrice coverages
•Determines policy terms and conditionsDetermines policy terms and conditions
Careers in Insurance: Operations
Insurance UnderwritingInsurance Underwriting
Line UnderwriterLine Underwriter
•Responsible for the day-to-day decisionsResponsible for the day-to-day decisions
•Must refer to the insurer’s underwriting guidelinesMust refer to the insurer’s underwriting guidelines
Underwriting ManagementUnderwriting Management
•Sets the company guidelines for underwritingSets the company guidelines for underwriting
Process that underwriters followProcess that underwriters follow
•Gather necessary information from various Gather necessary information from various sources to evaluate applicantssources to evaluate applicants
•Making the underwriting decision, which Making the underwriting decision, which includes analyzing options and choosing the includes analyzing options and choosing the best optionbest option
•Implementing the underwriting decisionImplementing the underwriting decision
•Monitoring the underwriting decisionMonitoring the underwriting decision
Careers in Insurance: Operations
Insurance ClaimsInsurance Claims
A claim is a demand by a person or A claim is a demand by a person or business seeking to recover from an business seeking to recover from an
insurance company for a loss that might be insurance company for a loss that might be covered by an insurance policycovered by an insurance policy
Careers in Insurance: Operations
Insurance ClaimsInsurance Claims
Claim RepresentativeClaim Representative
•Also called an adjusterAlso called an adjuster
•Responsible for investigating, evaluating, Responsible for investigating, evaluating, and settling claimsand settling claims
Careers in Insurance: Operations
Insurance ClaimsInsurance Claims
Responsibilities of a Claim Representative Responsibilities of a Claim Representative
•To respond promptly when a claim is submittedTo respond promptly when a claim is submitted
•To obtain adequate informationTo obtain adequate information
•To properly evaluate the claimTo properly evaluate the claim
•To treat all parties fairlyTo treat all parties fairly
Careers in Insurance: Operations
Insurance ClaimsInsurance Claims
Types of Claim RepresentativesTypes of Claim Representatives
•Insurance company employees Insurance company employees
•Independent adjustersIndependent adjusters
•Independent representatives that charge a fee Independent representatives that charge a fee to a company for claim servicesto a company for claim services
Insurance ClaimsInsurance Claims
Types of Claim RepresentativesTypes of Claim Representatives
•AgentsAgents
•Companies give agents authority to settle small Companies give agents authority to settle small claims claims
•Public adjustersPublic adjusters
•Hired by the insureds to represent themHired by the insureds to represent them
Careers in Insurance: Operations
Careers in Insurance
Advantages to a Career in InsuranceAdvantages to a Career in Insurance
RecognitionRecognition
Insurance professionals lead businesses and Insurance professionals lead businesses and communitiescommunities
Advantages to a career in InsuranceAdvantages to a career in Insurance
FlexibilityFlexibility
The industry invites people to take charge and The industry invites people to take charge and work at their own pace in any locationwork at their own pace in any location
ChallengeChallenge
People in insurance make a difference by People in insurance make a difference by solving problems and helping peoplesolving problems and helping people
Careers in Insurance
Advantages to a career in InsuranceAdvantages to a career in Insurance
VarietyVariety
Every day is a new adventure. The work is as Every day is a new adventure. The work is as varied as the customers' needsvaried as the customers' needs
AdvancementAdvancement
Self-motivated, skilled people advance quicklySelf-motivated, skilled people advance quickly
