The Profession

Why Work in Insurance?

If you like working with people and want to be part of a fast moving industry, then insurance could be for you. For graduates, a vast range of career opportunities await them in the sector, where they can apply the skills and knowledge that they have gained from their degree. Want to find out more? Read on…

There are 210,367 people employed in the insurance sector (Office for National Statistics, April–June 2009) and women make up 51% of the workforce (Office for National Statistics Labour Force Survey Q2 2009). The insurance market covers a huge variety of risks, from cars and houses to ships, planes and satellites. Those working in the world’s trouble spots need kidnap and ransom cover, oil pipelines need terrorism cover and music promoters insure against the non appearance of the leading act.

Insurance is increasingly necessary; events ranging from the school sports day to the Olympic Games could not take place without it. It has a global reach and not only underpins our own individual security but also enables big businesses to operate more freely.

Events such as floods, theft and fire can affect an individual too. Anyone with valued items, such as jewellery, a laptop or the general contents of their house may also require insurance. Individuals may also want to insure their health so that if they become ill, or die, there is a financial safety net for themselves or their family, along with retirement planning for when they get to an age when they will no longer be working.

The insurance markets
Insurance can be broken down into two types of markets. Although there are differences, the theme is the same: both are concerned with offering financial protection against unforeseen events. You will find similar career opportunities in each market, although the job title, working environment and salary may differ. The key distinctions between the markets are often the type of customer and the sum of money involved.

• The wholesale market focuses mainly on the London Insurance Market, which comprises the syndicates operating in Lloyd’s of London together with the London offices of a number of UK and international insurance companies. The risks that these companies and syndicates share are generally very large and sometimes unusual and are placed in the market by specialist brokers.

• The retail market is what most people understand by insurance and comprises the companies that we see advertising on the high street and the internet. It deals with the types of insurance that the general population need for their car, house, travel or pets, and also arranges pensions and life cover.

Types of insurance
There are generally three categories of insurance, which can happen across both or just one of the insurance markets.

• General insurance provides protection for damage that may happen to our belongings – for example cars, houses, jewellery, or for any harm that may come to us during particular events such as holidays or sports activities. Companies also need insurance against any unforeseen events that could impact upon their business, like a fire in a warehouse or a plane crash, or even a hurricane in America. General insurance is dealt with across both the retail and wholesale markets.

• Life assurance refers to financial cover for individuals in the event of their death or illness, therefore providing financial security for their family. Life and critical illness cover provides security for those who have mortgages. Life insurance occurs mostly in the retail market. People also need to be financially secure when they have retired and pensions are a huge market. Some companies insure their senior staff too.

• Reinsurance is when an insurance company arranges insurance for a risk that they have already insured themselves. The insurance company becomes the ‘insured’, and the reinsurance company is the ‘insurer’. This is a fairly specialist type of insurance, and much of this work takes place in the wholesale market. Reinsurance is normally applied when a company is insuring against very large perils, so that if paying out against the policy is necessary, the risk is shared between a number of companies rather than just falling on one.

Within an insurance firm you will find a team of specialists working together. These teams could include professionals from underwriting, broking, customer services, sales, risk management, compliance, training, actuarial, marketing and administrative roles. Each professional supports the other, ensuring that the risk is managed well and that the customers – whether it be an individual, a business or the government – feel financially secure.

It’s not just arranging and negotiating the insurance that is important though. Risk managers help organisations understand and address all the risks facing their business, including those that can be insured and those that can’t. Loss adjusting and claims management specialists have to manage the situation if the unforeseen event does indeed happen and a loss occurs. They have to use their knowledge and expertise not only to assess the validity of the insurance policy but also to liaise with a wide range of other people – fire brigade, police, lawyers and doctors to gather evidence and support the customer through the process.

What are employers looking for from graduates?
Employers in the insurance markets are looking for graduates that are committed and extremely professional in their practice. Skills are exceptionally important and employers will look for new entrants that have good communication, negotiation, problem solving and lateral thinking skills. Customer service and client relationship skills are equally important, as are good numerate abilities. According to Bell and Clements, the insurance sector is always looking for bright graduates, with a logical methodical approach and with the potential to understand the vital elements of risk. There are so many different classes of business and so many different types of jobs that graduates can be sure to find an area of interest. There are very few specific insurance degrees, so anything with a business or mathematical focus would fit perfectly.

Possessing a good understanding of the sector is an advantage. There will be some jobs that require an applicant to have an understanding of the technical knowledge needed to do the job, but don’t worry if you feel this is not something that you can offer – most employers are willing to support an entrant through training and gaining professional qualifications. Professional qualifications are very important in the insurance sector and most employers will require you to work towards achieving these. As confirmed by John Hutton, National UK Sales Learning & Development Manager at Friends Provident, “it has never been more vital for individuals to focus on their own personal development. Whether it’s the development of knowledge, skills or the achievement of qualifications, those who grow their capability will be successful in our industry in the future”.

Insurance employers are, as Willis Limited (Global Insurance Brokers) state, always seeking to identify and attract the best talent. Don’t miss out, be part of the industry and start planning your career in insurance.

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