Satyam Bruyat

Career in Insurance Sector, Pay scale and Growth

Career in Insurance Sector

Positives/Negatives of Insurance Sector

Positive

The industry is on the path of development. The possibilities are increasing day by day for people having good people and selling skills.
In the next few years, the insurance sector will touch new heights, the benefits of which will eventually reach the students making a career in this field.
Many good institutes are working in this field like NIA of Pune which offers excellent courses in insurance sector. In addition, institutes like Birla Institute and ICFAI offer courses in this subject through both regular and distance education.

Negative

Students or insurance professionals should have a high ability to convince people about the policy and to persuade them to buy which may sometimes be disliked by the people.
Day by day new companies are debuting in this field. Recently, as Reliance has stepped into this area. So people are less able to trust these companies.

Pay Scale in Insurance Sector in India

According to the company, 10000 to 30000 rupees can be easily obtained in the beginning. On reaching a higher post, you can also get a monthly pay scale of Rs 1 lakh. If you have done MBA in Insurance from a reputed B-school then you can expect much better pay scale in your first job itself

Major Companies in Insurance Sector in India

The top ten companies providing employment opportunities based on optional statistical information are as follows:

Life Insurance Corporation of India, Bajaj Allianz General Insurance, ICICI Lombard General Insurance, ICICI Prudential Life Insurance, New India Insurance Company, IFFCO Tokyo General Insurance, Oriental Insurance Company and HDFC Standard Life Insurance.

Introduction Career in Insurance Sector

Insurance is a special relationship between the insurer and the insured, where the insured gets a fixed monthly or annual amount deposited with the insurer as a ‘premium’ and in return for which the insurer will suffer any accident, illness or any other pecuniary loss to the insured. In case the amount exceeds the premium.

This insurance proves to be very beneficial for you in the event of any person in the family getting sick or an accident. Nowadays, insurance companies have many insurance policies to deal with various critical situations of life such as, life insurance, travel insurance, vehicle insurance, health insurance and home insurance.

Apart from government companies like Life Insurance Corporation and National Insurance Company in our country, many private companies like ICICI Prudential, Max New York, Birla Sun Life, Bajaj Allianz and Tata AIG also offer very profitable insurance policies to their customers in this sector.

The main objective of the insurance policy is to secure the future of the insured person and his family in the event of any natural calamity, theft or any other accident. If you have selling skills, communication skills and understand the problems of people and are ready to give them all possible financial help, then insurance sector is best for you.

Process to start career in insurance sector in India

Students can make a career in this field after graduation. However, some students prefer to join the insurance sector from 12th onwards. Nowadays many companies also offer part-time jobs to graduate students.

Still, it would be preferable to take a masters degree in insurance management after college to get complete knowledge of the subject.
The postgraduate course in Insurance consists of the following subjects:

  • Principles and Applications of Life Insurance and General Insurance
  • Life Insurance and Non-Life Insurance Sectors
  • insurance law
  • Life Insurance Underwriting and Risk Management
  • Insurance Liability and Life Insurance Claims
  • Re-insurance and life insurance products
  • The main objective of this study is to introduce you to the various aspects of the insurance sector.

Career Scope in Insurance Sector in India

If you have felt during your student life in school or after that you have good people and selling skills then insurance subject will be suitable for you. You can start a career as an Insurance Agent or Sales Executive- Insurance of a reputed insurance company.

For this you have to clear agent exam conducted by IRDA (Insurance Regulatory Authority of India). After working like this for a few years, you can also become an insurance manager.

To make insurance a career, two types of skills are required- first, making people friends easily and second, identifying their problems correctly and making them understand the importance of insurance.

You can explain to them how insurance provides protection against any future accident. Insurance can at least provide protection to the people financially.

Fees Structure of Career in Insurance Sector

According to the university and institute, the annual fee for MBA-Insurance course can be between 1 to 2 lakhs. ICFAI, NIA and Birla Institute are some of the best insurance schools. Apart from this, many institutes offer diploma courses and courses in insurance through distance education.

Scholarship

No separate loan of any kind is provided for the insurance course. But working professionals can get scholarship from their company for this course. Similarly, education loan up to Rs 7.5 lakh can be obtained from banks like State Bank of India.

Job Opportunities, Career in Insurance Sector in India

The employment prospects for insurance professionals are increasing day by day. You can start a career as an insurance agent where you have to sell insurance policies to people. For this, you are given a fixed target, which you have to meet by earning for the company in the form of premium.

In return, you are given a commission. Apart from this, the position of Sales Manager- Insurance is also important where you have to handle a team of insurance agents. You can also start your career as an insurance underwriter.

Demand and Supply in Insurance Sector in India

There is a lot of demand for insurance professionals these days. Today, only 14 percent of the world’s population is insured by insurance agents, which means that still 86 percent of people have no insurance of any kind. Hence the demand is much higher than the supply.

Today this area needs people with a passionate and business vision. Since it is often said that “insurance is a matter of prayer”, a good income can be obtained with the right policy and a clean system.

Market watch

In the last few years, many companies like Max New York, ICICI Lombard, Bajaj Allianz have come up with new policies to attract people. Most of the policies are reliable and for the benefit of the people.

The insurance industry has always touched new heights except in 2009, the year in which almost all the big companies registered a decline in their earnings.

International exposure

Insurance is the best medium to secure financial condition, movable and immovable property and life. In developed countries like US and UK, this sector is reliable and well-organized.

It is in developing stage in India and is emerging rapidly. But LIC and GIC two companies are very reliable, apart from these all private companies work according to the strict rules of Insurance Regulation Development Authority.

Tips to get employment in Insurance Sector in India

You can get a job after pursuing an undergraduate or postgraduate degree in insurance with the help of the following tips:
  • Regularly checking websites of good companies and apply for job openings
  • Increase your circle of friends and acquaintances who you can use in future in your insurance deal
  • Read a book to enhance business practices, communication and selling skills
  • Keep track of the global insurance landscape and new strategies that are yet to be launched in the country
  • Keep abreast of new laws and rules like IRDA Act and amendments in them
  • Keep an eye on the big finance companies and their positions on the stock market so that you can plan your bargaining and selling.

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