Career Opportunities in Insurance Sector (FYBBI Sem-II) PDF

CAREER OPPORTUNITIES IN INSURANCE SECTOR NAME TULSI KUMARI ROLL NO 2411062 FYBBI SEM- II SUBJECT- PRINCIPLES AND PRACTICES OF BANKING & INSURANCE TEACHER- Mrs. Archana Kadam...

CAREER OPPORTUNITIES IN INSURANCE SECTOR NAME TULSI KUMARI ROLL NO 2411062 FYBBI SEM- II SUBJECT- PRINCIPLES AND PRACTICES OF BANKING & INSURANCE TEACHER- Mrs. Archana Kadam YEAR- 2024-25  1 INDEX CHP NO TOPIC PG NO REMARK 1 Introduction 3-4 2 Review of Literature 5-6 3 Research Methodology 7 4 Data analysis & interpretation 8-11 5 Conclusion & Suggestions 12 6 References 13  2 INTRODUCTION India is a country with a large proportion of its population being young and employable. With the public sector ceasing to provide sufficient opportunities of employment, the educated have to invariably look for private sector employment for their sustenance and growth. With low levels of financial inclusion, financial sector offers immense scope and potential for expansion. Insurance penetration in particular is low in the country providing immense scope for expansion for insurance business. The large number of insurers in the private sector, intense competition and diverse kind of intermediaries and specialists who have a role to play in the insurance business provide immense employment opportunities in insurance sector. The primary purpose of the insurance sector is to provide financial security and stability by mitigating risks associated with unforeseen events like accidents, illness, natural disasters, or death. Some types of insurance include:  Life insurance: Provides financial benefits to beneficiaries upon the insured’s death or after a set period.  Health Insurance: Covers medical expenses and hospitalization costs.  Property and Casualty Insurance: Protects against losses from accident, theft, or natural disasters (e.g., home and auto insurance).  Liability Insurance: Covers legal liabilities arising from personal and professional actions.  Specialized Insurance: Includes travel, marine, and cyber insurance. Insurance sector plays a vital role in the global economy by providing financial stability, risk management, and security to individuals and businesses. With its continuous evolution and increasing demand for innovative products, the industry offers promising career opportunities for professionals across various domains. Technological advancements and the rise of InsurTech(Insurance technology) have further expanded the scope of the industry, creating innovative roles in data analytics, artificial intelligence, digital transformation. The industry is characterized by its diversity, offering careers in areas such as actuarial science, underwriting, claims management, sales, marketing, risk assessment. These roles cater to individuals with varied skills and interests, making the sector inclusive and accessible to a wide talent pool. Furthermore, the insurance industry is known for its resilience and stability, often 3 remaining unaffected by economic downturns. It provides job security, competitive salaries, and opportunities for professional growth, making it an attractive option for long term career planning. In addition to personal benefits, careers in insurance contribute to societal well-being by helping individuals and businesses recover from unforeseen events and secure their future. This societal impact adds a layer of purpose and relevance to choosing a career in this field. Over the past few years, there’s been a marked shift in the perception of insurance from being a luxury to an absolute necessity. This change is primarily due to rising health consciousness, increased instances of lifestyle diseases, and unforeseen circumstances like the global pandemic. Moreover, India’s vast young demographic provides an immense opportunity. This young workforce is not only health-conscious but also financially aware. They understand the importance of early investments and risk coverage, making them a ripe market for insurance penetration. With more companies adopting digital means, the process of buying insurance has never been easier. This digital accessibility, combined with facility to compare diverse policies online, has simplified decision-making journey for the everyday user. And this growth isn’t limited to urban regions alone. India’s rural territories, often considered as tougher markets, are gradually understanding the concept of insurance. Based on a recent specific study, the Indian insurance sector is projected to rank as the sixth largest market by the year 2032. OBJECTIVES The objectives of the study are as follows: To find out the multiple employment opportunities available in Indian insurance sector. To understand professional requirements of insurance sector. To understand employment opportunities in insurance sector.  To study the current scenario of the employment in insurance sector. 4 REVIEW OF LITERATURE Smita Ravikumar Kuntay (2017) in her research paper titled “Employment opportunities available in Insurance sector in India” has studied on the number of career opportunities available in Indian Insurance sector. This sector has diversified substantially since the liberalization reforms of the 1990s, which allowed private players to enter the market. She identified that this sector’s expansion has created diverse employment opportunities across marketing, underwriting, operations, actuarial analysis, and more. She highlighted that employment in the insurance industry is not only confined to direct roles but also extends to specialized professions like actuaries, legal consultants, and medical professionals. The industry’s demand for skilled individuals with expertise in sales, technology, and customer relations is evident. Additionally, the sector’s focus on rural inclusion, driven by regulatory mandates from the Insurance Regulatory and Development Authority of India (IRDAI), has expanded employment prospects beyond urban centers. She concluded that opportunities are many and will grow with almost 25 new entrants expected to be in this sector. The services of independent entrepreneur or group of professionals joining together is what required today The book titled “Employment opportunities in insurance sector” highlights the vast career potential in India’s growing insurance industry, driven by low penetration and increasing demand. It provides an overview of the sector’s evolution, key players, and diverse employment opportunities across life, non-life, and reinsurance segments. They have discussed various roles such as agents, brokers, actuaries, legal professionals, IT specialists, and marketing experts, emphasizing the need for a skilled workforce at all levels. It also outlines the training infrastructure available to equip individuals with necessary skills and projects significant growth in employment, estimating millions of jobs by 2030. The report positions insurance as a stable and lucrative career option for diverse professionals in both urban and rural areas. Hema Chaurasia (2014) in her research paper titled “ Exploring Recruiting Challenges of the Insurance Industry” has studied on the recruitment and workforce challenges in insurance sector. She emphasizes that the insurance industry is a critical driver of economic stability and provides significant career potential. She stated that The insurance sector faces a shortage of 5 skilled workers due to the retirement of baby boomers and insufficient new entrants. This creates ample opportunities for those seeking careers in the field. She emphasizes the need for educational institutions to develop curricula that prepare students for careers in insurance, enhancing employability and bridging the skills gap. She points out that resolving workforce challenges can create more job opportunities and sustain the industry’s growth, making it an attractive career choice for young professionals. She highlighted the need for strategic recruitment practices, such as proactive measures, targeted marketing for multigenerational workforces, and leveraging educational institutions to develop industry-relevant skills. She argued that addressing these challenges can enhance job opportunities, improve organizational sustainability, and create a skilled workforce for the sector.  6 RESEARCH METHODOLOGY Objectives of the study:  To find out the multiple employment opportunities available in Indian insurance sector.  To understand professional requirements of insurance sector.  To understand employment opportunities in insurance sector  To study the current scenario of the employment in insurance sector. Research method For this study, desk research methods have been used. Desk research method is a method that involves using existing data. Desk research can be defined as a type of research, where you collect data at your desk (metaphorically speaking) from existing sources to get initial ideas about the given topic. So for understanding insurance industry and its contribution to economic development, the study will focus on the available past data and draw a conclusion on it. Source of data: The study is totally based on secondary data. The data is collected from many sources like IRDAI reports, parliament bills, journals, newspapers, and official websites. Data analysis tools The data is presented in the form of charts. Scope of study: The study showcases the growth and future of insurance sector in India and the various employment opportunities in insurance sector. Limitations:   This study only relies on secondary data so there is no actual proof other than the written. Article, secondary sources, relevant report  The available secondary data with the specific research question or objectives, leading to gaps in addressing the research problem.  Some data which are got through secondary method is outdated which is not relevance Job roles Estimated no. of employees Estimated share percentage Insurance 800000 55% Agent/Broker Customer support 200000 14% roles Claims adjuster 100000 7% underwriter 80000 5% Marketing and sale 250000 17% actuary 10000 1% Technology/IT roles 60000 4% in now day India.  Time constraints also lead to limitation of the study. 7 DATA ANALYSIS AND INTERPRETATIONS Data analysis: Interpretations: This table represents the approximate number of employees in different job roles in insurance industry in India and its percentage. Through this data we can interpret that :   Agents/Brokers dominate the workforce because they are the primary point of contact for customers and drive policy sales, especially in rural and semi-urban areas. A broker is representative of the insured (i.e. Customer) rather than of the insurer, but he is like an agent in the sense that he gets paid in the form of commission by the insurance company with whom he places the business. The broker solicits business from the Insured and then places the business with an appropriate Insurance Company. He can deal with any number of Insurance companies as opposed to the single company that an agent can represent. Brokers also provide pre sale and after sales service to the Insured. 8  Customer Support Roles have a significant share to handle policyholder queries and post-sale services.  Specialized roles like Actuaries and Underwriters have smaller shares due to their niche nature. But they have a greater scope in the future Actuary is a most remunerative profession in Insurance sector in India. In life insurance companies the appointment of Actuary is statutory requirement. It is a specialist who evaluates financial risks to calculate a suitable premium for policies. Such professionals implement financial statistics and mathematical theories to estimate appropriate premiums in order to minimise the risks for insurance companies. Underwriters are in charge of issuing policies and deciding which policies an insurance company should offer prospective customers. They also calculate the cost of insurance coverage. They detail the policy they create by analysing information from prospective policyholders and assessing the risks, likelihood, and potential cost of a claim. Irrespective of the job roles mentioned in the above table there are many other career opportunities that the Indian insurance sector offers. Let’s have a brief look at some of these career options: 1. Risk Managers: Traditionally, risk managers have focused on event risks, but some organizations have broadened the role to include other types of risk (e.g., operational risks). The risk manager is charged with identifying risks, evaluating risks, selecting the best techniques for treating identified risks, implementing the chosen risk management techniques, and regularly evaluating and monitoring the program. This person is also involved in the managerial processes of planning,  organizing, leading, and controlling those activities in a business that deals with various types of risk. 2. Claims Adjuster: A claims adjuster investigates insurance claims to determine the extent of insuring a company’s liability. Claims adjusters may handle property claims involving damage to structures, and/or liability claims involving personal injuries or third-person property damage. A claims adjuster reviews each case by speaking with the claimant, interviewing any witnesses, researching records (such as police or medical records), and inspecting any involved property. 9 3. Policy and Product development: Professionals in this field are involved in designing and developing new insurance products to meet the evolving needs of consumers, requiring a blend of market research, legal knowledge, and creative thinking. 4. Legal Consultants: Just like Insurance Consultants, both Insurers and Insured parties seek the expertise of legal consultants, primarily during claim disputes, arbitration, third-party claims, liability claims, or when the issue has been taken to court. It is anticipated that the number of legal disputes arising from insurance- related issues will rise significantly, with more than 20 new entrants joining the market. 5. Investigators: Independent professionals or companies that provide their services to insurance firms on a case-by-case basis to assess the authenticity and extent of claims, particularly for early claims and theft claims. These experts must possess specialized knowledge in their field as well as a strong understanding of insurance. In the future, we can expect the emergence of insurance claim investigation agencies, fraud prevention organizations, and statistical/grading companies established by entrepreneurs.  6. Recovery Agents: Their services are used by the Insurance Companies to settle third party claims. Wherein there is a chance of recovery from the third party. The insurers send the recovery agents to talk to the third party and arrive at a justified settlement thus savings on legal costs, which otherwise would have been incurred if the matter had gone to court. At times, the settlements made by the recovery agents are quite favourable. 7. Medical Professionals: TPA” means a Third Party Administrator who is engaged for a fee or remuneration determined in the Agreement for health services. He is a service provider to the Insured on behalf of insurance company. His work profile includes, to obtain all the requisite documents pertaining to the administration of insurance claim arising out of insurance contract 10 Job Skill Requirements To pursue a career in the insurance industry, one has to pass the entrance test conduct by the Actuarial Society of India, Mumbai. Students who have passed 10+2 or equivalent exam are eligible. License is desirable to work in this field which can be achieved through a training programme. Some other Requirements are also required to pursue their career in Insurance Sector. Candidates must have knowledge of sales techniques. Familiar with computers and know all the software packages. Enthusiastic, self-confident, disciplined, hard working and able to communicate effectively. Able to inspire customer confidence.  11 Conclusion The insurance industry in India has developed into a vibrant and swiftly expanding field, presenting numerous career opportunities in various areas such as underwriting, actuarial science, claims management, and digital innovation. Its robustness in the face of economic changes, along with the growing awareness of financial security among the populace, has elevated the sector’s status. As technology adoption increases, the sector looks to expand into rural regions and benefits from a youthful workforce, indicating strong potential for ongoing growth. This transformation not only enhances individual career prospects for professionals but also plays a vital role in promoting societal stability by mitigating financial risks. Recommendations:  Skill Development Initiatives : There should be an emphasis on training programs in data analytics, artificial intelligence, and other fields related to InsurTech to equip professionals for the upcoming technological shifts in the industry.  Awareness Campaigns: Increase public awareness about the diverse career paths available in the insurance sector, emphasizing growth prospects and societal impact.  Rural Outreach Programs: Focus on expanding insurance penetration in rural areas by hiring and training local professionals to cater to these regions.   Encourage Entrepreneurship: Support individuals interested in becoming brokers, recovery agents, or setting up independent insurance-related services, fostering innovation and employment.  Regulatory Support: Collaborate with government bodies and educational institutions to streamline processes like licensing and certification for roles such as agents and actuaries.  University Partnerships: Build partnerships with academic institutions to integrate specialized insurance courses into their curricula, ensuring a steady inflow of industry- ready talent. These measures will enhance the sector’s accessibility and inclusivity while preparing it for future challenges and opportunities. 12 References  [email protected]  https://timespro.com/blog/pursuing-a-career-in-insurance-best-jobs-and-career-scope  https://www.careerindia.com/tips/scope-and-career-opportunities-in-insurance-sector- in-india-034371.html  Chatgpt  https://hr.economictimes.indiatimes.com/amp/news/hrtech/talent-acquisition-and- management/emergence-of-new-job-roles-in-insurance-sector-factors-influencing- demand-for-talent/112017315  https://www.careerindia.com/tips/scope-and-career-opportunities-in-insurance-sector- in-india-034371.html  https://policyholder.gov.in  http://puneresearch.com 13