JOBS IN INSURANCE
Insurance refers to the guaranteed safety of life and individual or company properties against specified loss or harm. Insurance has developed into a process of protecting the interests of people from loss and uncertainty. It is a social mechanism to lower or eliminate the risk of loss of life and property. The insurance industry has played a significant role in the overall economic growth of a society and a country as a whole by ensuring the stability of the business and the functioning of processes. It gives assurance to people and companies who would like to engage in high-risk companies with high returns.
There are several benefits provided by the insurance industry, the major one being the provision of safe and security of life and property. There are many risks involved with life and property, such as fire, accidents, and marine, and as a result, insurance provides financial support and reduces uncertainties in business and a person’s life. Coverage generates financial resources through the premiums they collect. This money is invested in government stock and securities, enabling the country to create more funds for economic development. Life insurance encourages savings in society as a result of regular and systematic payments of premiums. Life insurance also provides a channel of investment other than protecting against risks and uncertainties. The additional benefit of insurance is that it allows for medical support. It is an essential tool in managing health risks such as unexpected critical illness. Insurance plays a significant role in spreading risk from the insured to the insurer. The main idea behind insurance is the spreading of risk among a vast number of people.
There are many job opportunities provided in the insurance industry, among them being actuary, claim adjusters, appraisers, agents and brokers, loss control specialists who are also known as loss control representatives and underwriters. Each job opportunity will be discussed in detail in the following paragraphs.
Actuary
An actuary is a profession in insurance whose work is to analyze financial risks using statistics, mathematics, and economic propositions. Actuaries help insurance companies in determining better risks or the ones the companies are less likely to pay out claims resulting from frequent loss helping them to remain profitable and financially stable to be able to pay any claim. This profession has been in use since the idea of insurance was first discovered and used. An actuary must know human behavior and also be in a position to use information systems to come up and manage programs that control risk. To qualify as an actuary, you must have done a degree in actuarial science or have degrees in economics, finance, accounting, statistics, and mathematics and, at the same time, pass an examination on actuarial offered by the Society of Actuaries.
Actuaries engage their skills of analysis to weigh the likelihood of occurrences that directly cause loss, such as property loss, sickness, disabilities, injuries, and deaths. They help insurance companies invest intelligently to maximize income and be in a better position to pay any genuine claim presented to them. The actuaries use the results from risk analysis to design and cost insurance policies. One of the primary areas actuaries pays great attention is on mortality risk in life insurance. The determining factors in life insurance that help to determine how much premium to charge are lifestyle factors and history of health conditions. An actuary also advises the insurance on the best way to invest profits gained to get the best returns. In property and general insurance, an actuary analyzes information to lower the risk of funds and property loss and assist in coming up with ways to manage these risks and come up with insurance rates based on the risk factors. Actuary advises the insurance officials to set aside enough funds to pay for any potential claims.
Claim Adjusters
Insurance claim adjuster represents and works for an insurance company; their role is to investigate insurance claims from the clients to come up with the extent of liability for the insurance and how much to compensate that would be reasonable to both sides. They work on several claims ranging from property claims such as damage to vehicles, buildings, and structures, claims involving injuries on persons without forgetting claims on third-person property damage. They review cases independently by discussing it with the claimant. The insurance claim adjusters do research on records, including police and medical records, and also perform inspection and take photos on all the properties involved and interviewing any witness available to come up with a detailed and fair conclusive report. They work in line with statutory guidelines provided in assessing and finding out damage levels, policy coverage, and liability using the minimum time as possible.
It’s the work of the insurance claim adjuster to confirm that the insurance policy document covers the damage caused in place. If the damage is covered, the policy will take care of the losses incurred and may also include any other related difficulties experienced. For instance, if your insured business car was involved in an accident and you had to hire a private vehicle to continue with your work, the insurance company should cater to these costs. The adjust asks a lot of questions as well as taking as many photos as possible to serve as evidence, and they would also require access to all parts of the property.
Appraiser
An appraiser is a staff employed in an insurance company that ensures fair compensation to a claimant who holds a policy document in the event of theft, accident, damage to property, or any other forms of loss. The insurance appraiser determines the value of the item or property insured and the extent of damage to the property. He/she must have detailed information about the subject or property appraised and its repair or replacement cost. Policyholders pay monthly premiums to maintain the agreement made with the insurance company. The insurance company derives the premiums from the value of the property insured. Once the insurance has come up with the cost of loss, they pay the policyholder to replace or repair the damaged property.
The insurance appraiser knows the value of insured items and property and their repair or replacement cost. An appraiser assists the insurance company to curb insurance fraud as they use their expertise in this field to determine whether cost estimates are right or not. Being an employee of the insurance company, he/she will work on favor of the company when necessary. If, in any case, the claimant fails to agree with the appraiser’s determination, he may hire an independent insurance appraiser. The appraiser will assist both the insurance company and the claimant from being involved in costly and tedious legal wars.
Agent and Brokers
Insurance agents and brokers are responsible for passing the licensing examination that is done by the insurance department. To go through this examination, you are supposed to have explicit knowledge of the different insurance policies, practices, and rules. Agents and brokers provide all this knowledge we need will obtaining insurance cover. The agent worked for the insurance company in the position of sales representative and paid on commission. The difference between agent and broker is that an agent writes policies while the broker assists the customer make the policy.
It is vital to take into consideration several factors before purchasing a contract, one, in any case, the insurance is secured, make sure you see the basis of the security. Ask for a detailed breakdown of policy details to understand all the characteristics that have all the explanations related to coverage, premiums, and deductions. Insurance agents and brokers receive a commission as their returns; they provide a written memo stating the fee they are charging. There is a limitation in the maximum fee charged if the placement is done through the auto plan but no restrictions if the installation is through other forms or sources such as the voluntary market. Agents and brokers should never over cash as a form of inducement. Always try to get the best way of coverage by contacting different brokers and agents or friends with insurance cover policies. Satisfied friends and relatives in conjunction with honest agents and brokers will help get the best plan.
Loss Control Specialists
In an insurance company, loss control specialist who is also known as loss control representatives does inspections and report preparation for insurance underwriting functions. These reports are used by the company while ensuring a commercial structure in case of renewal or a new policy. Conducting surveys for loss control gives insurance underwriters information on insured items, loss potential, and their available restrictions and the probability of doing away with undesirable conditions. The reports may cover business property and casualty lines like inland marine, liability, property, and compensation of workers. Loss control specialist communicates to the insured and book to visit their area. They gather all critical information through interviews, inspecting the place, and taking photos to help avoid a covered loss.
A loss control specialists provide essential professional services such as contacting the insured person who has raised a claim or any customer they wish to visit, finds out any potential loss that may occur, investigate all the possible causes of injury and come up with a corrective action to prevent its repeat in future. They develop an action plan to lower the likelihood and reduce the magnitude of the loss, they also come up with a recommendation report addressing risk exposure and highlight the importance of correcting it and uploads this reports, photos, and diagrams on a specific website. It is through accurate and high-quality loss control surveys conducted by loss control specialists that underwriter use in the choosing of profitable business and assists the insured to control losses through loss control services in place.
Underwriters
Insurance underwriters are the staff of insurance companies who are trained insurance professionals who have a great deal of knowledge on risk and how to prevent them from occurring. The term underwriting refers to the process of monitoring the risk involved in insuring vehicles, homes, and life to find out if it is profitable to be offered by the insurance company. Underwriters have great wisdom on risk assessment and use it to decide whether to insure a property or life and what cost. Insurance underwriters are the company’s risk-takers and take financial responsibility, and they review information agents give and concludes on whether the company is willing to take a risk on it.
Underwriters review information to decide the real risk, determine the policy covers the insurance company accepts to insure and the conditions involved, and also look for proactive solutions to reduce or curb claims from future insurance risks. Advice from Insurance underwriters is appreciated in cases of multiple applications, examples of first insurance, and if payment issues arise. Underwriting can as well automated through computer programs, mostly in the absence of exceptional circumstances.
The discussion above provides evidence that the insurance industry has provided jobs that have changed the way of life to many people. The insurance sector has contributed significantly to the growth of the economy through money circulation to manage cash flow, investing their profits in other business, it pays back losses incurred by companies as a result of property damage, theft among others and giving investors’ confidence and courage to invest in risky business with high returns. It has also encouraged a saving culture among many people through life insurance while benefiting dependants, loved ones or any other beneficiary.