The Insurance Industry
Prepared by the DiamondsMary Keegan Bruce PennKathy Rehn Kristin Waiting Glenn Fitze Rose Truglio
Overview and Trends
• Approx. 1800 U.S. companies offer personal and commercial lines
• Function as financiers• Protects the economy against
losses of all kinds• After 9/11/01, stopped writing
terrorist policies
Overview continued...
• Insurers, banks, and securities brokers can merge and cross sell each other’s lines
• More of an investment-management focus
• They are forming strategic alliances, many mergers happening in industry
• Act as large investors in our economy
Job Outlook• Companies seek
tech-savvy candidates
• Internet Sales has reduced need for “Insurance Agents”
• Growth in systems analysts, adjusters, and examiners
ActuariesActuaries• Blood and guts number
crunchers• Determine risks and statistically
render social trends• Must have strong mathematical
reasoning and statistical background
• College Degree a must
Agent or BrokerAgent or Broker• Sell policies
–Personal lines : limitless accounts–Business lines: Fewer customers, larger accounts
• Product Line Knowledge imperative• Great Interpersonal Skills• State Licensing Exam
More careers:Claims AdjusterClaims Adjuster• Negotiate claims• People Skills• No College required
Loss-Control Loss-Control SpecialistSpecialist
• Prevention analysis• Knowledge of safety• College required
Risk ManagerRisk Manager• Advise management• Manage benefit plans• Degrees/Work Experience
Service RepresentativeService Representative• Liaison to public• Product knowledge• College degree req’d
UnderwriterUnderwriter• Evaluates applications and
decides if premium justifies risk.
• College degree req’d
Information Information TechnologyTechnology
• Manage data/information• Computer skills and
experience• Technical degree or
credentials preferred
Typical Salaries/ CompensationA comparison:
0
20
40
60
80
100
120
LowSalary
Avg.Salary
HighSalary
AgentAdjusterActuaryManagerUnderwriterAnalyst
Earnings Statistics
• Weekly earnings of nonsupervisory workers averaged $675 in 2000.
• Median Hourly earnings range from $11.83 entry level office assistant
to $40.23 General Manager of an independent insurance agency.
What’s to Love?
• Growth Oriented– Life insurance– Long term care– Retirement investment– Bonus of work flexibility
• Technological Outlook– Computer aided software
tools– Image processing– Client/server systems– Pen-based computers
What’s to Hate?• No Job is Safe
– Computerization– Consolidation– Competition
• Bureaucracy– Memo everyone– Company policies– No creativity
• “Heartless”– No reimbursement
for AIDS– Loss ratio– Conscience?
Who are they? Top 5 in U.S.A.1. American International
Group2. State Insurance3. Berkshire Hathaway4. Met Life5. Allstate
Top 5 on Long Island
1. Aon Group, Melville2. Treiber Insurance Group,
Garden City3. BWD Group, Jericho4. Marsh USA, Melville5. Allied North America, Jericho
Professional Associations• ALLIANCE OF AMERICAN INSURERS(630) 724-2100 www.allianceai.org
• AMERICAN ACADEMY OF ACTUARIES(202) 223-8196 www.actuary.org
• AMERICAN ASSOCIATION OF MANAGING GENERAL AGENTS
(405) 840-9393www.aamga.org
• AMERICAN INSURANCE ASSOCIATION(202) 828-7100www.aiadc.org
Wait, there’s more...• INDEPENDENT INSURANCE AGENTS OF
AMERICA(800) 221-7917www.iiaa.org
• INSURANCE INFORMATION INSTITUTE(212) 669-9290www.iii.org
• LIFE OFFICE MANAGEMENT ASSOCIATION
(770) 951-1770• www.loma.org
• NATIONAL ASSOCIATION OF INDEPENDENT INSURERS
(202) 639-0495www.naii.org
• NATIONAL ASSOCIATION OF INSURANCE WOMEN
(800) 766-6249www.naiw.org
The College Connection on L.I.Employers prefer college graduates for all
sales, managerial, and professional jobs.The preferred degrees will have a major in
business, economics, finance, or accounting.
The ability to operate computers is essential.
Continuing education is a requirement for most jobs.
Where to go?
• Adelphi• Dowling• Hofstra• CW Post• Southampton
College
• NYIT ( New York Institute of Technology)
• SUNY Farmingdale
• SUNY Old Westbury
• Molloy College
Continuing Education and Credentials•Underwriters
–AU ( Associate in Commercial Underwriting) takes 1 to 2 years combines courses and exams–CPCI ( Chartered Property and Casualty Underwriter) takes ~5 years and 10 exams
•Life and Health Insurance–CLU ( Chartered Life Underwriter)–RHU (Registered Health Underwriter)
• Claims adjuster/Examiner– AIC ( Associate in Claims)– RPA ( Registered Professional Adjuster)– CPPA ( Certified Professional Public Adjuster)– SPPA (Senior Professional Public Adjuster)– ALHC (Associate Life and Health Claims)– FLHC (Fellow Life and Health Claims)
• Actuary– Series of National Exams to become fully
qualified, takes approx. 5 to 10 years.
• Agents– Must be licensed by the states in which they
sell. – Additional licenses to sell mutual funds,
securities or other financial goods.