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Industry Profile -- by Jolene Cheslock
Consider the following situations:
- You are driving and get into an accident.
- You come home and your basement is flooded.
- You have property damage from the hailstorm the night before.
- You are injured on the job.
- You have bought a new car.
- You moved in to new apartment or home.
- You are going to start a new business.
What do these things all have in common? All require the involvement of someone working in the insurance industry. When you call to get a quote on insurance, or make claim, or adjust your policy, many things go on behind the scenes. There are people deciding the cost of insurance for different groups, people selling policies, people investigating claims, and people working for companies that insure the insurance companies. And you thought it was only a simple phone call.
There are many different types of insurance - life, health, and general insurance for things like homes, businesses, cars, jewellery etc. This industry profile covers general insurance, or in industry talk, property and casualty insurance.
Presently in Alberta there are 10,323 people in the insurance industry - 3,738 primary insurance employees, 6,105 brokers and employees, and 480 independent adjusters and appraisers. In Canada, there are 97,199 general insurance employees and 230 private general insurance companies. It is predicted that the insurance industry will have average occupational growth until the year 2005. While the forecast may not super-rosy, the insurance industry is generally solid as people are always going to need to protect themselves from future hardships and losses, and insurance offers that protection.
People in the insurance industry normally work in an office environment from 35 to 55 hours per week, and some have out of office work. Most occupations in the industry require working with other people, so two key abilities are strong people skills and strong communication skills. Average sale skills, analytical ability, creativity, and initiative are also needed for insurance industry occupations. The educational requirements vary. You can get in to the industry with a high school diploma and be trained on the job, or take some insurance courses, or enter with a post-secondary education.
Here's a closer look at some of the occupations available in the insurance industry:
Actuaries are people who apply their knowledge to predict the future. Not with a crystal ball - but instead a calculator. They apply mathematics - probability, statistics, and risk theory - to predict the risk of insuring property and business. Actuaries help people and insurance company's plan for the future by predicting future risks and planning to reduce the consequences of those risks. Insurance actuaries are fundamental to the insurance industry as they involved in almost every aspect. Post-secondary education is not required to be an actuary, however, the work is technically demanding, and as a result most actuaries have a post-secondary education.
- Pay will range from $45,000 to $115,000 per year
- Well above average growth is expected to the year 2005
Insurance adjusters deal with insurance claims. They investigate the causes and origins of claims by gathering evidence from a variety of sources and determine who is at fault, if the person is covered under the insurance policy and will negotiate any settlements. The minimum requirements are a high school diploma and a driver's license. Insurance adjusters are trained through a combination of on-the-job experience and courses.
- Pay will range from $17,000 to $49,700 per year
- Below average growth is expected to the year 2005
Insurance underwriters are the people who determine which people and businesses qualify for an insurance policy. Working closely with insurance agents and brokers, underwriters review policies to ensure policies are suited to potential clients and also ensure policy premiums are adequate to cover potential costs. Education requirements will vary from company to company, but generally underwriters have some post-secondary education or insurance-specific training. On-the-job training is common.
- Pay will range from $16,000 to $45,000 per year
- Below average growth is expected to the year 2005
Insurance agents/brokers are those who help customers choose the best policy to protect their valuables or themselves by selling policies to cover their homes, businesses, lives. Agents/brokers often work for an agency that represents more than one insurance company. Agents/brokers may also be called upon to find new clients and sell them insurance policies. There are no standard educational requirements, however, most companies will require at minimum a high school diploma. On-the-job training is common.
- Pay will range from $18,000 to $90,000 per year
- Below average growth is expected to the year 2005
Insurance data clerks work in some insurance brokerages and are responsible for tasks such as processing the paperwork required when a person or business renews an insurance policy. Organizing files and working closely with the agents or brokers is also a part of the work. There are no standard educational requirements for this position, however, a minimum of a high school diploma and some insurance specific training may be required in some offices.
- Pay will range from $14,000 to $40,000 per year
- Below average growth is expected to the year 2005
Risk managers help businesses control risks and losses. Risk managers identify and analyze potential problems decide on the most effective risk management technique oversee the implementation and progress of the chosen technique, such as implementing safety training for employees. Employers prefer risk managers with post-secondary education.
- Pay will range from $16,000 to $45,000 per year
- Below average growth is expected to the year 2005
Reinsurers insure the insurance companies. You didn't think your insurance company would recommend you get insurance and not insure themselves? No way. There were no salary ranges, or growth rate predictions for reinsurers, but there are about 1,500 reinsurers employed in Canada. The Canadian reinsurance business is unique compared to the rest of the insurance business - it is very global. As a result of history, most reinsurance companies in Canada have foreign roots. It is not uncommon for reinsurance employees to travel all over the world and deal with people in many different cultures. Previous insurance experience is required.
Each industry profiled in nextSteps also includes several jobs that are related or universal across industries. Some of those jobs that included in, or are related to, the insurance industry are: accountants, financial planners, bank workers, realtors and property managers.
Previous issues with more on some of these occupations:
- Financial Careers, November 2000 (Accountants, Banking Investment Managers, Financial Analysts, Accounting Clerks, Credit / Loan Managers, Financial Planners)
- Real Estate Careers, March 2000 (Real Estate Appraisers, Real Estate Assessors, Property Managers, Home Inspectors)
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