Insurance

The insurance industry centres around protecting financial assets from future events, whether this is theft, damage or loss of property or, on a more personal level, death, illness or injury. Insurance careers offer many opportunities across a range of industry sectors around the world.

Types of insurance

• Life assurance and pensions are concerned with retirement saving and insurance against earlier-than-expected deaths or ill health. The best known of these products are life assurance policies, which pay out a sum of money if the policy holder dies before a specified date, and pension schemes, which are investment portfolios designed to guarantee an income upon retirement. However, there are also other products available such as income protection policies, designed to pay out if the policy holder is unable to work through illness or disability, and personal investment portfolios.
• Corporate/commercial insurance financially safeguards businesses from a variety of risks including public, employer or product liability (for a work-based accident, for example); negligence; interruptions to their normal business activities causing a loss of income; contents insurance for commercial premises; and for commercial transport systems.
• General insurance is an umbrella term for any type of insurance except life assurance. This therefore extends across a number of different insurance products and specialisms.
• Personal insurance is taken out by individuals rather than corporations and might include home building contents insurance, travel insurance, pet insurance, personal motor insurance and private medical insurance.
• Reinsurance is a risk management strategy for insurance companies. If the financial undertaking of a policy is too big a sum for one insurance company, another insurance company will accept part of that risk for a certain financial return. Reinsurance spans single high net-worth policies and numerous small policies that, while small in themselves, if claimed collectively would draw on the insurance company’s resources considerably – for example, individual homeowners’ policies claimed in the face of widescale natural disasters.

Types of graduate employers in the insurance sector

There are many different types of insurance organisations that employ graduates. Insurance companies essentially manufacture different insurance products and services to offer customers, which they then promote to insurance brokers and price-comparison websites. They may also offer products and services on the behalf of other organisations such as retailers that offer financial services or travel agencies that provide travel insurance policies. Some insurance companies specialise in a particular type of insurance (such as reinsurance or commercial insurance) but many companies span a range of insurance specialisms and functions. Increasingly, retail banks provide their own insurance products and so there are some insurance-specific opportunities with retail banks.

'As the industry is so diverse, it’s not surprising that there are many different job roles for graduates.'

Insurance brokers are the distributors of insurance products. Brokers are concerned with finding the best product for a particular client from a number of insurance providers, whether that client is an individual or a large conglomerate. In an increasingly competitive marketplace, some insurance brokers have started to offer risk management services to clients as well. Independent financial advisers (IFAs) also provide brokerage services on life assurance and pensions.

The markets based in London are also key insurance organisations in the UK. The London Market is concerned with trading international insurance policies, focusing mostly on general insurance, reinsurance and high-exposure risks. Lloyd’s of London is an insurance market of members who carry insurance risks in syndicates.

Types of graduate jobs in insurance

As the industry is so diverse, it’s not surprising that there are many different job roles for graduates. You may work in a technical area such as underwriting or claims. Underwriting involves deciding whether a company should take on an insurance risk and how much they should ask in premiums. Working in claims, you investigate a claim and decide whether and how much a company should pay out.

There are also sales roles, in which you promote policies, and organisations traditionally employ actuaries to assess risk and manage pension plans. There are functions in business finance – whether that’s deciding on investments, doing financial reports or accountancy work – and operational management roles in which you oversee the people and processes in customer service departments. There are also other specialist roles (for example, in marketing, HR and IT), which are vital to the success of the business. All of these roles should be available across insurance employers.

'Historically, insurance products were distributed by over-the-counter brokers, but the advent of price-comparison websites means that it is now a much more fast-moving and competitive marketplace.'

New developments in the insurance industry

Historically, insurance products were distributed by over-the-counter brokers but the internet means that customers are now able to buy directly online and it’s much faster to complete transactions. The advent of price-comparison websites means that it is a much more fast-moving and competitive marketplace.

Starting out in an insurance career

Most insurance organisations recruit a regular intake of graduates as trainees, often via a graduate scheme. Insurance employers may also take on trainees on an ad hoc basis throughout the year as needed. Larger employers may rotate you around different departments and business functions to gain a broader understanding of the industry and international employers usually encourage you to travel to different offices around the world to experience different markets. Insurance work is usually completed in small teams and trainees can work closely with senior people.

Depending on your role, you may be encouraged to take examinations or qualifications with an appropriate professional body such as the Chartered Insurance Institute (CII) or the Institute of Risk Management (IRM).

Skills required for graduate insurance jobs

The most important attributes for insurance careers are a positive attitude and enthusiasm, as these will ensure you are self-motivated, focused and innovative. For the more technical roles, you should be comfortable with numbers although in many cases you do not need a numerate degree. Depending on your role, you may liaise with professionals from a wide range of other sectors, such as legal firms and motor repair centres, as well as clients so it is important that you have good communication skills.

'This diversity of work is one of the best things about working in insurance: each day can include any combination of legal, financial, relationship building and risk management aspects.'

This diversity of work is one of the best things about working in insurance: liaising with a range of organisations means you are exposed to different business cultures and each day can include any combination of legal, financial, relationship building and risk management aspects. Consequently, you have to be able to cope in a fast-paced and constantly changing environment.

Carolyn Hector is head of operational marketing – corporate partnerships at AXA Insurance. She has eight years’ experience in the industry and is both a Chartered Insurer and Marketer.