Careers consultant Viki Chinn shares her insights into a highly rewarding financial services career:
How would you like to work in a dynamic industry that covers nearly everything? Where no matter what your personal interests are, you can find a role which incorporates them into your everyday work? Add to that a good work-life balance and the opportunity for continued learning and development and it seems almost too good to be true.
Welcome to careers in insurance.
Yes, I did say insurance… don’t stop reading! Insurance covers almost anything you can think of, including international risk, global markets and world-famous events.
Insurance isn’t a desk-bound role. It’s about getting out there, building relationships, being commercially-minded and having a global career. London is the world’s number one market for insurance but plenty of brokers conduct business all around the UK so you can choose to work either in London or at a regional base.
Who can become an insurer?
With a range of careers available within the industry, insurance companies look for employees from a variety of backgrounds. Insurers come from disciplines as diverse as sociology, geography and classics as well as financial and numerically focused degrees. I once met a sports education graduate who worked in the sports recreation and entertainment team of a well-known insurer, and he played a key role in the insurance of the London 2012 Olympics. You may not have considered it, but without insurance, not only would the Olympics not have happened but the world would struggle to operate. Insurance really does cover everything!
What do insurance companies want from you?
The insurance industry is looking for students with good communication and problem-solving skills, the ability to analyse and knowledge of different languages. All technical knowledge is learned on the job. Applicants don’t need relevant experience but usually have to show evidence of extra-curricular activities, hobbies and motivation as well as a genuine interest in the area in which they will specialise.
What professional development will you get?
Professional qualifications play an important part in graduate schemes. Most employers put graduates through the Advanced Diploma in Insurance, a two or three year programme which is the global standard for technical expertise and knowledge in insurance. As well as insurance, it covers business, economics, marketing, law, risk management and other areas.
What kind of roles are there and how much can you earn?
- Insurance broker: An insurance broker is the “middle man” in an insurance transaction. The broker speaks with the client and helps identify and understand their needs and requirements. Following this, it’s then up to the insurance broker to seek competitive terms and conditions from insurers to cover these needs and requirements. Insurance brokers usually specialise in one area of risk. Salaries for trainees tend to start at around £27,500, rising to up to £68,000 for senior account directors and even more than £100,000 for managing directors.
- Underwriter: The role of an underwriter is in risk transfer. It’s up to the underwriter to assess a particular risk, decide if they want to take it onto their books and work how much premium to charge, considering the potential cost if claims are made. Salaries for trainee underwriters on graduate schemes typically start at £25,000 with senior underwriters earning between £30,000 and £65,000. Qualified underwriters with the right combination of qualifications, skills and experience can earn salaries exceeding £100,000.
- Actuary: Actuaries provide the mathematical and analytical foundations for financial decision-making. They evaluate, manage and advise on financial risks, based on what has occurred in the past, using statistics and applying probability theory. They then calculate premiums and advise on whether or not a company has sufficient assets to meet its potential and actual liabilities. Strong communication skills are essential and actuaries need to be able to discuss complex topics in a simple, easy-to-understand way in order to assist their clients effectively. Starting salaries for graduates usually range from £25,000 to £35,000. Typical salaries for newly-qualified actuaries are between £40,000 and £55,000. Salaries at senior level are often more than £60,000 with salaries in excess of £185,000 common for senior directors.
- Business development: Business development teams bring strategies to market. They work closely with marketing professionals and underwriters to develop new and innovative ways to maximise sales and achieve targets for their clients. Salaries can vary with some companies offering relatively low basic salaries but high performance-related bonuses. Successful business developers can earn £35,000 in their first year with salaries rising to more than £100,000 plus uncapped bonuses at the most senior levels.
- Reinsurer: Reinsurers provide insurance and financial protection to other insurance companies to protect them from losses. Reinsurers come from a variety of academic backgrounds, but numerical, commercial and language skills can give candidates an advantage. Salaries usually start at around £25,000, rising to well in excess of £100.000 for experienced reinsurers. There are also excellent opportunities for working globally and being based abroad.
These are only a few of the roles available within insurance. There are many others in related financial areas such as risk management and claims, as well as non-financial roles in areas such as HR, marketing, IT and management. A great site to find out more information about careers in insurance is www.discoverrisk.co.uk.
In my opinion, insurance is a real “hidden gem” career within financial and professional services.
Insurance as a career is a good profession. A wider scope of making a business / professional career is possible if somebody chooses insurance as career in an early age.
The article is good.