Career Development in Insurance Sector Essay

Potential for line of achievement k straightledge in damages policy orbit is most vibrant baksheeshic today. 1 Million plus persons be working today as an employees in damages empyrean and 5 Million plus persons ar associated with this celestial sphere as Agents, Consultants, Surveyors, liberation Assessors, Underwriters, involve Settlers, Salvage Dealers, Brokers, Sub-brokers, etceteraetc. The exploitation rate in policy heavens is more than 20% in last 3 dogged time. in that location is big potency for development in restitution field. The heavens is nether developed and penetration of indemnity is very very low in the earth comp bed to other evolution and developed countries. India is leading towards cardinal of the strongest scrimping of the world by 2020 and it is international phenomenon that restitution heavens always booms along with ontogenesis sparing. indemnification Services atomic number 18 the foundation for smooth performance of all line of descent & commercial activities. indemnification is the backbone of overall economic system of the sylvan.For the developing country akin India where festering of the economy is at rep hoist digit rate, restitution talent is inevitable. All Industries in this scenario can be monetarily sanitary protected from all types of catastrophic and manmade risks. restitution is a fomite for ontogeny in growing economies. The whole world is looking at India as one of the giant and Asian tiger in following(a) 8 to 10 old age. All this is true. But very interesting incident of the today is that no one is aw argon about the exact probable of public life development and opportunities in indemnification vault of heaven. This article is dedicated to relegate the facts and figures about railroad career development opportunities in amends Sector in India. This is an effort to enlighten and guide the readers, employees, students, stake holders to infrastand the facts and fountaints of redress sector and how one can develop long term career in policy Sector.The article forget review all aspects of indemnification sector and discuss Opportunities for Career Development Growth potential in policy Sector Changing Scenario of Insurance Sector Manpower & acquisition Sets essential by Insurance Sector Regulatory Changes in Insurance Sector New trends and Developments International Impacts Present Academic Scenario Available Educational Facilities youthful Educational & Academic Developments Speed and growth cycles of career enhancement in Insurance Sector Salary Packages at Entry takes, Middle Level and Top Level How to reform Employibility and Skill Sets Career Opportunities Outside India Subsectors in Insurance for Career Development Preparing Career Development Path in Insurance Sector Challenges & Opportunities for Career Development in Insurance Sector, FAQs i.e. often Asked Questions Career Opportunities in Insurance Sector, etc After 25 years of realize in Insurance Sector and witnessing the changing scenario of restitution sector later on IRDA, I keep up noticed that the cede and future workforce in Insurance sector is totally puzzled about the career enhancement and confused to find a road map for growth. Thousands of Career Fairs & Exhibitions crosswise the country are covering all sectors for career opportunities exchangeable IT, BPO, ITES, Engineering, Automobile, Management, Finance, Medical, health Care, Accounts, Law, Company affairs, etc, nobody is talking about amends sector for career development. People believe that redress is a small part of pay sector and it need not be cared beyond mere merchandising of indemnification harvestings.Unfortunately I confirm to state that working employees, students, parents, media, academicianians, colleges, universities, top executives of damages sector and society as a whole are not aware about the exact potential and place sett ing of career enhancement in Insurance Sector. Working in insurance sector is always a secondary thought and society hesitate to find career in insurance sector. Association in insurance drill is always presumed as below status career.This prejudice attitude towards insurance sector is a great harm for red-hot entrants and career growth of current workforce. This is ironical that due to this negative attitude, the new generation is neglecting and under estimating a golden opportunity of developing gorgeous career in insurance sector. It is more unfortunate that after more than 100 years of commencement of insurance course activity in our country, the academicians, regulators and top executives in Insurance Sector live with ignored the need and importance of up(a) the brand image of insurance sector.Growth Potential in Insurance Sector in India * Insurance is one of the fastest growing sector in India. Hardly 6 % of the population of the country has covered by life Insurance. T he penetration is as low as 0.9 % in frequent insurance. soundlyness Insurance has reached to merely 3 % of the population. In country like USA, where the population is 35 Crores, there are more than 6000 companies are active in insurance calling. In India, population is more than 110 crores and merely 52 companies are working in Insurance Sector. If we assume that merely 50% population is insurable, still we need 10,000 companies to cater the need of 55 Crore people. Only biography Insurance sector has grown to certain intent and people say that I wish to purchase LIC policy for my car or LIC policy for stocks in my factory.Only compulsory policies of general insurance sector affirm been sold like repel policies and fire and industrial policies. Large number of general insurance products are not up to at once k right awayn to the employees of general insurance companies. Thanks to electro mechanical equipments, scientific development and commercialization of medical pr ofession, health insurance penetration has reached to 3 % of population. quiet this number is very poor comparing to developed countries. Central governing body has targeted Life Insurance Penetration to 40 %, Health Insurance at 30 % and General Insurance at 15 % of the population by 2030. This entrust create very huge potential for development in insurance Sector. The insurance business was merely 12 billion US $ by 2000 which has reached to approximately 100 Billion US $ by 2012 and is now expected to grow metre Billion US $ by 2020 and 5000 Billion US $ by 2030.* Approval of Bill of 49% FDI in Insurance sector is long awaited. Once it is enacted, the number of insurance companies whitethorn rise to 150 to 200 in next 7-8 years. in that location is immense potential for insurance industry to grow. At present there are 24 Life, 27 Non Life and 1 Reinsurance, thus total 52 Insurance companies are in insurance business. Out of this, 4 companies are working exclusively as Heal th Insurance Companies. 334 insurance broking companies, 800+ corporate agents and thousands of banks have entered in insurance business.Third Party Administer (TPAs) Companies in Health Sector are 29 and TPAs growing in Automobile and jural Sector. The specialized functions in insurance sector are slowly outsourced and rush many new companies volition enter in this area. International insurance surveyors, loss assessors, adjuster, underwriters, claim settlers, have already entered in India and expanding their business activities. crimson the world insurance and finance giants like Warren Buffet, Lloyds, Munich Re, Swiss Re, have entered in India.* Health insurance is developing as separate sleeve of Insurance. It is expected that the number of health insurance companies ordain be touch to the number of life insurance companies in near future. Bancassurance is in any case developing as Separate branch of Insurance. People is India have more credence in banks than insurance agents. Many banks have already entered into insurance business and lot more in pipeline. Banks find insurance as growth vehicle. At present simply GIC of India is the reinsurance company in the country. But governing body is now thinking over allowing many more international reinsurance companies in India. In few years, we may find 5 independent branches of insurance in India as Life, General, Health, Bancassurance & Reinsurance.* India is becoming Insurance Hub of the world. Giant insurance companies from across the globe are outsourcing nerve centre insurance functions to India. IT infrastructure in the country and new generation Indian Talent are attracting world insurance business for core functions for cost effective solutions. Indian software companies are leading in this race. Even BPO in Insurance Sector is growing very fast. All this require technical and domain skills sets of Insurance functions. This IT, ITES and BPO business in Insurance Sector from outside India is expected to rise to 1000 Billion US $ by 2025 It is believed that next boom is in insurance sector. Insurance willing coquette signalise lineament in boosting economy further. In India, next 25 years will be predominate by Insurance Sector. The growth is expected at horizontal as well as vertical levels. It will be from inside the country and from outside the country.Changing Scenario in Insurance Business in India * Insurance was strictly dominated by Agents and Development officers till 2000. But IRDA has exposed up new distribution channels such as bodied Agent, Insurance Broker, Bancassurance, Mallasurance, Online Sale of Insurance, Direct Sale, etc. These new channels are growth engines of the insurance industry. One interesting aspect of this growth is that Insurance Sector is heading towards SERVICING from merely Selling. The mantra of Sell it and Forget it is now converting as Service & Retain Client. This requires Core insurance association and not merely Selling Ex pertise.* The commission rates of insurance agents are slowly getting downward trend. The servicing of client is now interpreted care by customer servicing department. The Technology has now bring out role in policyholders servicing and provides better noesis and expertise than agents. Companies are now offering new gate ways for renewal commissions like through internet banking, ATMs, ECS, Mobile banking, etc. It has reduced the dependency of policyholders on agents for timely renewal of existing policies.* Government is slowly removing the Income Tax rebates from insurance policies. It has already signaled the same and introduced few provisions in current budget by restricting the percentage of amount of premium with the sum certified of any policy.* Product Development and new innovative policies has changed the olden rules of the selling game. unadulteratedly begging for insurance or forcing a policy will not exist anymore. The 35 % commissioned policy selling assurance wil l be wear away. .* Insurance is Risk Cover or enthronisation is a matter of debate but common policyholder is now diverting to PURE Insurance products such as Term Insurance. The ULIP Story betwixt IRDA and SEBI has focused on a need of domain insurance talent.* There is certainly reasonable improvement in policyholders awareness and acquaintance about insurance. Government, IRDA and NGOs like FIBLI, insurance companies and related stake holders are concentrating on customer education, literacy and awareness about insurance products and services through advertisements, seminars, workshops, comics, e-literature, joyous films, etc.* As Insurance need is vertical as well as horizontal, the insurance business is spreading across the country. Insurance companies are focalisation and spreading network in rural markets as it has huge potential. Technological development is helping this drive of rural expansion.* Health Insurance and Bancassurance sectors will grow drastically. Gener al Insurance Sector will also develop. In life Insurance Sector, Term Insurance Business will dominate.* In future, Online Insurance will have a key role in new business. * It will be difficult to get insurance claims in future. There will be huge scope for Claim consultants who will help people to get insurance claims.* Insurance sector will slowly dominate the economy and there will be overall developments in insurance sector. There will huge revenue generation form insurance business in India as well as outsourced insurance business from outside India.Employability Potential in Insurance SectorAs insurance sector is growing with 20% rate, there will be a huge requirement of Insurance professionals in the country.* NSDC Report National Skill Development Corporation has estimated the job creations of 2 Million persons in insurance and banking sector by 2021 in its a la mode(p) report.* CII Report The recent survey of Confederation of Indian Industries estimated that there is a n eed of 21 lakhs insurance educated employees by 2025.* ASSOCHEM Report on Insurance Sector It has pointed out on employability potential in Insurance Sector in its latest report. The report has estimated work force requirement to be 30 Lakhs by 2030. The job creation in insurance sector will be across the country as insurance business is spreading across the country. The innovative distribution channels will play a vital role in insurance penetration and of course, applied science will be a great supportive tool for this development. The manpower is required across the country.Insurance companies, banks and financial services providers are focusing and spreading network in rural markets as it has huge potential. It will return huge employability not only at Metro and urban areas but at semi urban and rural levels, too. At present there are 52 companies, 334 brokers, 1200 + banks, 29 TPAs, 2000 IT, ITES & BPO companies, 400 surveyor and other insurance services provider companies are working in India. The number will rise to double or triple in next 8 to 10 years. These companies will have offices across the country and will generate jobs across the country.Career Development Path in Insurance SectorTill IRDA, insurance career was dominated by selling activity. It is the anticipate misconception that any career in insurance sector will have to be connected with selling of insurance products. The Insurance Agents and Development Officers partnership in the country has coloured insurance policy selling with every begging of insurance or forcing for insurance.The rebating in insurance premium has eroded insurance profession as under privileged one. After IRDA and entranceway of corporate insurance companies, the face of insurance career was always compared with the face of poor insurance agent. Career in Insurance was always neglected one and approach towards it was one of the ridiculous one. But the situation is now changing drastically. Career in Insuranc e is not merely a selling activity. Insurance Sector require domain technical knowledge. The employees with core insurance competency can only grow henceforth. After a decade of privatization, corporate companies have understood that insurance is not a FMCG product and one must(prenominal) possess technical skills and fundamental knowledge to exist & grow in this market. Servicing will be key for growth and for this, one require domain expertise.For new entrants, any step with specialized diploma in insurance domain like underwriting, claims, motor insurance, health insurance, bancassurance, reinsurance, liability insurance, aviation insurance, engineering insurance, agricultural insurance, marine insurance, etc will be helpful to enter in insurance sector. One has to improve his academic fashioning and scope of skills by adding various diplomas from various streams of insurance. As one grows with experience, this academic excellence and expansion will improve his employibilty an d scope of promotions and growth. For existing employees, one has to improve his academic position along with experience. Mere experience will not help beyond certain limit. As we expect 49 % FDI and steep increase in number of insurance companies, the existing employees will have clear advantage to grow.But for this, they must obtain domains skills and competency through academic enhancement. The present employee in insurance sector should focus on overall and multi dimensional development in his capacities, skill sets and academic qualifications. The candidate with multifaceted core skills will have better opportunities over general candidate. He should not limit himself only to underwriting or claims. He should always seek for more and more knowledge. One can select a sector of insurance like Life or general or health for developing his career bridle-path but he should be equipped with qualifications and skills of other sectors also. It will widen the scope of opportunities ava ilable to him.Salary Packages In Insurance SectorAs per the present scenario in Insurance Sector, one may join insurance company at entry level with a yearbook software system of Rs.1.2 lakh to 1.5 Lakh. He may be designated as Associate or Assistant. In 3-4 years, he may grow to higher position with a scale of Rs. 3 to 4 Lakhs if he has academic qualifications with experience. After 6-8 years after joining insurance, one may easily grow to annual package of 7 to 10 Lakhs. After 12 to 15 years, one may dream to annual package of Rs.15 to 20 Lakhs. Of course, this needs academic up gradation and continuous improvement of domain skills. This trend may continue for next 20 years as there is long term and inside outside country potential.The speed of career growth and expansion is smooth and fast in insurance sector than mayhap any other sector in the country. But it needs s manoeuvreing work, academic excellence and aggressive approach towards opportunities. I will component part one practical example here. The employees who joined insurance sector in the newly entrant companies like Bajaj Allianz, HDFC, ICICI etc between 2001 to 2003 were drawing annual remuneration package of 1.5 to 2.5 lakhs. They are now grown to key positions in new companies after 8 to 10 years with annual packages of Rs.20 to 25 Lakhs. any(prenominal) of them have even clinched packages of 40 to 50 Lakhs per annum.Skill Sets Requirements by Insurance SectorAt present, man power requirements are fundamentally skilled based. Employees with academic qualifications are encouraged for promotions. Fresher with academic qualification in insurance are preferred. At present, Insurance Companies recruit freshers and train them for 6 months or one year. But the attrition rate is so high that more than 42 % of new recruits leaves the company.Insurance companies are naughtily concerned over the expenditure on training and the rate of turnout. They are looking for employees who have been already trained and having domain academic qualifications. Insurance Companies have found that domain knowledge will improve selling, servicing, trading operations and all other functions. New companies prefer persons with experience and academic qualifications. Skill sets required by the insurance sector are underwriting skills, claim discussion skills, operational skills, servicing skills, risk assessment and classification skills, insurance product skills, distribution channel operating skills, coordination skills, IT skills with domain knowledge, insurance accountancy skills, etc.