If you are studying to earn a degree in finance, you may be interested in learning about the types of finance jobs in the insurance industry. While many students who initially try to pursue finance degrees do not consider entering the insurance industry when they graduate, but this is a thriving and multi-billion dollar industry that has a growing need for finance grads. If you would like to know about the roles you are qualified for in insurance when you have a formal degree in finance, read on and learn what you need to know.
Risk Managers in the Insurance Industry
Insurance companies use risk to calculate premiums and also to assess how much financial risk the company should take on and still stay financially secure. If you work as a finance risk manager, you will analyze the market and the company’s assets and make recommendations on what the appropriate level of risk is for the company to take on. You will use the strategies that you learned in your finance coursework to help the finance executive make decisions that will not overexpose the company or offer too low of a return. While this is a high-paying career, it is also highly stressful.
Actuaries who Set Insurance Rates
Actuaries play a very important role in the insurance industry by helping companies calculate the risk that is presented by policyholders. If you hold this title, you need to be skilled in mathematics and have a deep understanding of statistics. You will use mortality rates, claims trends, driving record factors, and other factors to make predictions and projections on how likely a policyholder would be to file a claim. Once rates have been set, agents will be able to quote clients for products based on their personal information. Actuaries must get a professional license by passing a series of actuarial exams before they can work in this field. Because it can take 6 to 10 years to complete each exam, you can expect to earn between $150,000 and $200,000 per year, according to the Society of Actuaries.
Corporate Finance Officer for Insurance Company
If your goal is to become an executive, you may want to consider becoming a Chief Finance Officer for an insurance company. A CFO is responsible for all of the financial operations within the insurance company. Not only do they oversee the employees in the finance department, they also establish strategies that the company will use to invest and to maintain their financial health. You will need an advanced degree in finance, and experience with budgets, corporate tax, and business law to hold this title. It can take as long as 15 years to climb the ladder and become a CFO.
Related Resource: Insurance Analyst
There are several different job options for finance degree holders who would like to work in insurance. You can become an actuary, an executive, a risk manager, an underwriter or even a sales agent. You will need a minimum of a bachelor’s degree to enter the industry, but some jobs may require a master’s or an MBA. You may need to work your way up from an entry-level position before you can hold some of the upper-level titles. Compare the types of finance jobs in the insurance industry, and find the perfect match so that you can choose your career path.
