Careers in Insurance
With the coming in of the private companies, the Indian insurance sector has seen exponential growth. Today the sector has become indispensable to the economy in not only creating liquid assets but also generating employment for millions. Presently there are about 30 insurance companies in India apart from the government companies of LIC ,GIC and postal insurance. Other private and Multi National Companies like Om Kotak Mahindra, Birla Sun-Life, Tata AIF Life, Reliance, HDFC Standard Life-Insurance Co., Max New York Life, Royal Sundaram, Cholamandalam, IFFCO Tokyo and Tata AIG are big players in the sector.
The foremost choice to open a career in insurance field is to start as an insurance agent whose main task is to advice people and enterprises about insurance. Depending on their educational qualification and strengths, the agents have a good chance of becoming an employee of the company. The industry also provides great opportunities in marketing, distribution, actuarial, underwriting operations and investing departments.
Course Details For Career in Insurance
To pursue a career in the insurance industry, one has to pass the entrance examination conducted by the Actuarial Society of India, Mumbai. Students who have passed 10 + 2 or equivalent exam are eligible. License is needed to work in this field which can be achieved through a training program that is conducted by the IRDA. Apart from this insurance has been included in the subject of studies in many universities at the graduation level. After the completion of graduation or post graduation in management one can work in the insurance marketing and sales of private insurance companies. Insurance companies belonging to the private sector also hire management graduates for different functions based on their requirement.
The eligibility criteria for the varied posts in the Insurance industry are:
Administrative Officer (AO) & Assistant Administrative Officer (AAO): Graduate/ Postgraduate degree holders in any subject with minimum of 50% marks from a recognized university and age between 21 and 28 years can apply for these posts. Recruitment is through a written examination and interview.
Development Officer: Graduates in any discipline between 21 and 26 years of age can apply for the post of Development Officer. Selection is based on written tests in English and Mathematics and an interview. Selected Candidates have to serve as apprentice for a period of 1 year.
Insurance Agents: The minimum educational qualification for an insurance agent is 10 + 2. Before joining as insurance agents, one needs to undergo 100 hours of classroom training by the respective Insurance Company based on the syllabus laid down by IRDA. After completion of training, they have to appear for the examination conducted by the Insurance Regulatory Development Authority (IRDA).
Composite Agent: They are the one who sells both life and general insurance policies. Eligibility criteria are the same as that of insurance agents but they have to appear for one more test, also conducted by IRDA.
Insurance Surveyor: Licensed by the Controller of Insurance, the surveyor can be engineers, accountants, medical graduates etc. To hold a license of a surveyor, one has to possess any one of the following:
- Fellowship or Associate ship of the Institute of Insurance Surveyors and Adjustors (IISA), Mumbai.
- Fellowship or Associate ship of the Institute of Chartered accountants or Cost and Works Accountants.
- A degree or diploma in architecture from a recognized university or institute.
- A degree or diploma from a recognized institute of engineering.
- A degree or diploma in Naval Architecture.
Actuaries: Graduates with 55% marks in Mathematics/ Statistics/ Econometrics/ Computer science or MBA in finance, CA, CWA, MCA are eligible to join for actuary training. Training in this field can be pursued from the Actuarial Society of India (ASI), Mumbai or The Institute And Faculty of Actuaries, London, UK. To work as an Actuary, one has to pass an entrance exam conducted by these institutes twice a year, in May-June and October-November.
The post of Assistants, Typists, Machine Operators, Stenographer, Telephone Operators, Clerks etc. are open to graduates and school-leavers and the age limit is between 18 to 25 years. The candidates applying have to go through a written test and interview.
Apart from this, there is a huge demand for sales and marketing professionals in the sector where the minimum qualification in graduate with 50% mark.
The eligibility criterion for recruitment to both the LIC and GIC is the same. Those who have passed the Licentiate Examination of the Insurance Institute of India, are preferred by the LIC and GIC for recruitment.
Institutes Offering Courses in Insurance in India
There are different institutes in India that provide courses in Insurance.Mentioned below are a few premier institutes
- Actuarial Society of India,Mumbai
- Amity School of Insurance and Actuarial Science, Noida
- Birla Institute of Management and Technology, New Delhi
- College Of Insurance, Mumbai
- Institute of Insurance and Risk Management, Hyderabad
- International Institute for Insurance and Finance, Hyderabad
- International School of Actuarial Sciences (ISAS), Hyderabad
- National Insurance Academy, Pune
- The ICFAI School of Finance and Management, Hyderabad
The pay scale in the government sector is based on government rules depending on position held. For each grade, along with their basic pay other allowances are also granted. In the private sector the salary scales are more lucrative. They take in management graduates to work mainly in the areas of marketing and sales with an initial salary ranging from Rs 15,000 to Rs 25,000 per month.
Commissions are the most common form of compensation for insurance agents and the amount depends on the type and amount of insurance sold, and whether the transaction is a new policy or a renewal. On the 1st year of policy, they may get about 25-32% of the premium amount, followed by 7.5% in the 2nd and 3rd and 5% in 4th and 5th year. When they meet their sales goals bonuses are also awarded. Remuneration of agents are governed by IRDA regulations, while earnings of surveyors depend upon nature of work and assignments.
Actuaries are one of the most highly paid people in the insurance sector and the entry level salary is expected to be somewhere around Rs. 8 lakh per annum and with a few years experience they could earn a seven figure salary per annum, especially in the private sector. For the underwriters it is around Rs. 6 lakh per annum