Do you know what an insurance analyst does? If you are in college or you recently graduated with a degree in finance or business, pursuing a career in the insurance industry could be the perfect choice for you if you find an occupation that allows you to hone your skills. If you work as an insurance analyst, your job will be to review policy or claims information and analyze the potential risks an applicant will present or whether or not the details of a claim are factual and the claim is legitimate. Read on, and learn more about the roles of the insurance analyst so you can decide if this is the title you would like to hold.
Analyzing Rating Factors to Determine Rates
Analysts may be responsible for one specific task or for several tasks depending on the insurer that they work for. One of the main responsibilities of analysts who work in the industry is to determine what risks are involved for various lines of insurance and then how these risks should impact premiums and how much is due to bind the coverage. The risks that increase the likelihood of a driver filing an auto insurance claim are different than the risks that increase the likelihood of an individual filing a medical insurance claim. If you are employed to review the potential risks and recommend rates for policyholders, you will be part of the rate calculation operations of the company and will work under the actuary and with an underwriter.
Analyzing Insurance Claims to Identify Fraud
Policy holders file fraudulent claims on a daily basis. Not all unfounded or illegitimate claims can be identified, but analysts who are in charge of reviewing claims cases made by the insured party are in this area of analysis to look for fraud. If you work in this area of insurance, you will read claims reports, review documentation, and perform your own investigation to find the fraudulent claims. Once the investigation is over, the analyst will give the upper-level managers in claims their report and make recommendations on whether or not charges should be filed.
Becoming an Insurance Analyst for a Large Company
Insurance agents may help small and mid-sized companies build the right commercial policies, but large organizations and entities have a need for their own insurance analyst. These analysts do not work for the insurer, but instead the company that is buying insurance products. You will identify the potential risks that are present for the company based on their location and their dealings and then you will recommend products that will reduce or eliminate risk. While you may recommend basic lines of commercial insurance, in most cases you will be informing the executives about specialized plans that will help fill in the gaps that exist in the standard commercial insurance portfolio.
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As you can see, the insurance analyst can wear many different hats. With the field projected to grow by 16 percent in the next 8 years, now is a good time to enter the field, according to the Bureau of Labor Statistics. You can either work in the insurance industry, the public sector, the private sector or with non-profit organizations when you hold this title. Make sure that you decide where your skills would be best suited before you apply for this position. Once you review openings and you find out what an insurance analyst does with the specific employer, you can decide if you want to start the application process.
