Careers in Insurance Industry:

If I had to recommend any industry for young people, it would have to a career in the insurance industry.  There is tremendous amounts of potential and room to grow. Not to mention projections predict a significant need.

Industry Needs

It has been estimated that the industry will lose about 500,000 people to retirement over the next 10 years.

According to a study by McKinsey, “Insurers also have greater exposure to the aging workforce than most industries, due to a focus on experienced workers. The number of insurance workers 55 or older has increased by 74 percent in the last 10 years, compared to a 45 percent increase for the overall workforce. This means that 20 percent of the insurance workforce is near retirement age (compared to 15 percent of the broader financial services workforce). By 2018, this number is projected to rise to 25 percent.”

This means that the industry should be hiring 50,000 entry level positions in preparation of its departing and aging workforce.

However, the property and casualty insurance industry faces a few challenges in attracting high-quality talent: a poor reputation, a limited understanding among high school and college students of the industry’s career opportunities, and a limited pool of trained talent.

The cross road of technology and insurance will present good opportunity to attract top talent.

Benefits of Insurance Career

It is a goal of many industry groups as well as this website to help improve awareness of this issue, improve the reputation, and promote the benefits of a career in insurance.  Some of the benefits of a career in insurance include:

  • The insurance industry has historically been more stability of employment than other financial services.  Certain insurance products are required by law (i.e. workers compensation, auto insurance) and somewhat protected by recessionary pressure, therefore have not felt the impact of the traditional consumer cycle.  Although insurance premiums decrease during recessions, there normally enough money to cover expenses in all economic conditions.
  • This industry has so many options for various personality types, skill sets, and educational/cultural backgrounds.  Diversity of thought is embraced in an industry focused on forecasting the future.
  • There are opportunities for introverts and extroverts in areas like actuarial and underwriting respectively.   According to sites like Be an and DW Simpson a career in actuarial science is both lucrative and personally satisfying.  “US News and World Report, the Jobs Rated Almanac, CNN Money, and others all agree: few other occupations offer the combination of benefits that an actuarial career can offer.”
  • For those individuals who want to experience all aspects of the industry as well as continue to learn about other industries, businesses, and be more social in their day to day job – Underwriting is a great career path.  Some of the skills required for underwriting include passionate readers, learners, inquisitive individuals, and those who have diverse life experiences.
  • There are also opportunities and career paths for individuals with passion towards marketing, legal, sales, management, claims, etc.  An individual could work for a claims organization, insurance carrier, insurance broker/agent, reinsurance carrier, reinsurance broker, or even a reinsurer that insurers reinsurers.
  • Travel – There are insurance and reinsurance hubs all over the world, in New York, London, Zurich, Bermuda, and outside these major hubs there is opportunity to travel across the globe.
  • Diversity – The insurance industry like most industries experience success when embracing diversity of thought, diversity of individuals, and diversity in risks.

I have thoughts and tips on How to Break into the Insurance Industry.

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Arnold Smith

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