CAREERS IN THE INSURANCE INDUSTRY

byLaura Kinchen

CAREERS IN INSURANCE: 3 SEGMENTS

Three Segments of Insurance Three Segments of Insurance Company OperationsCompany Operations

UnderwritingUnderwriting

MarketingMarketing

ClaimsClaims

CAREERS IN INSURANCE UNDERWRITING

Determines:Determines:• who an insurance company’s customers will

be

• what the companies’ products will be

• at what price those products will be sold

WHAT IS AN UNDERWRITER?

• Decides whether insurance is provided

• Identifies and calculates the risk of loss from policyholders

• Determines appropriate premium

• Determines policy terms and conditions

CAREERS IN INSURANCE UNDERWRITING

Line UnderwriterLine Underwriter• Responsible for the day-to-day decisions

• Must refer to the insurer’s underwriting guidelines

Underwriting ManagementUnderwriting Management• Sets the company guidelines for underwriting

• Delegates underwriting authority

CAREERS IN INSURANCE UNDERWRITING

ActuaryActuary• assess the risk of events occurring and help

create policies for businesses and clients that minimize the cost of that risk

• estimate the probability and likely cost to the company of an event such as death, sickness, injury, disability, or loss of property

CAREERS IN INSURANCE MARKETING

The process of identifying potential customers and then creating and supplying the products and services they need

CAREERS IN INSURANCE MARKETING

Four types of distribution systemsFour types of distribution systems• Independent agency

• Exclusive agency

• Direct writing

• Direct response

CAREERS IN INSURANCE MARKETING

Independent AgencyIndependent Agency

Independent agents are in business for themselves and usually represent several different insurance companies

CAREERS IN INSURANCE MARKETING

Exclusive AgencyExclusive Agency

Exclusive agents are in business for themselves but are contracted to do business with only one company

CAREERS IN INSURANCE MARKETING

Direct WritingDirect Writing

Direct writers are employed by an insurance company and rely on personal contact, direct mail, the internet, or telephone contact with the customer for their business

CAREERS IN INSURANCE MARKETING

Direct ResponseDirect Response

Direct writers are employed by an insurance company and rely solely on direct mail, the internet, or telephone contact with the customer for their business

CAREERS IN INSURANCE MARKETING

AdvertisingAdvertising

Insurance companies use traditional advertising campaigns such as television, radio, magazine, mail and the internet

Insurance companies also rely on local agents to advertise the company

CAREERS IN INSURANCE CLAIMS

Insurance ClaimsInsurance Claims

A claim is a demand by a person or business seeking to recover from an insurance company for a loss that might be covered by an insurance policy

WHAT IS A CLAIMS ADJUSTER?

• plan and schedule the work required to process a claim

• investigate claims by interviewing the claimant and witnesses, consulting police and hospital records, and inspecting property damage to determine how much the company should pay for the loss

WHAT IS A COST ESTIMATOR?

develop the cost information that business owners and managers need to make a bid for a contract or to decide on the profitability of a proposed new project or product.

determine which endeavors are making a profit

CAREERS IN INSURANCE CLAIMS

Responsibilities of a Claim Adjuster Responsibilities of a Claim Adjuster • To respond promptly when a claim is

submitted

• To obtain adequate information

• To properly evaluate the claim

• To treat all parties fairly

ADVANTAGES TO A CAREER IN INSURANCE

RecognitionRecognition Insurance professionals lead businesses

and communities

RewardsRewardsCompetitive compensation matches job

satisfaction

ADVANTAGES TO A CAREER IN INSURANCE

FlexibilityFlexibilityThe industry invites people to take charge The industry invites people to take charge

and work at their own pace in any locationand work at their own pace in any location

ChallengeChallengePeople in insurance make a difference by People in insurance make a difference by

solving problems and helping peoplesolving problems and helping people

ADVANTAGES TO A CAREER IN INSURANCE

VarietyVarietyEvery day is a new adventure. The work is Every day is a new adventure. The work is

as varied as the customers' needsas varied as the customers' needs

AdvancementAdvancementSelf-motivated, skilled people Self-motivated, skilled people advance quicklyadvance quickly