finance jobs with insurance

The insurance industry deals in:

  • perils
  • risks
  • potential liabilities

To grasp the financial impacts of the risks of losses, insurers, businesses and regulators look to job seekers with degrees or backgrounds in finance. Here are five jobs in the sector that rely on those with a financial training or education.

Actuaries

Premiums are often the product of actuaries. To set rates, these professionals collect and analyze data to project the likelihood a policy holder will file a claim and the costs of satisfying valid claims. The types of risks and factors actuaries consider vary by specialty. For example, life insurance actuaries focus on age, gender and smoking habits to predict life expectancy. In the automobile field, actuaries use a driver’s age, type of vehicle and driving history to determine the risk of an automobile collision involving the driver.

According to the U.S. Bureau of Labor Statistics, actuaries earn on average $110,560.

Risk Manager

Risk managers identify and evaluate the perils of running an organization. These may include:

  • fires
  • explosions
  • motor vehicle wrecks
  • illegal activity by employees
  • computer or internet security breaches
  • storm damage

In addition to finding the proper coverage for the perils, risks managers suggest or implement peril mitigation measures such as:

  • Driving record checks for commercial drivers
  • Adequately rated and operating fire extinguishers
  • Firewalls and anti-virus applications
  • Safety rules

The costs of addressing the risks and losses if the perils occur must be balanced by risk managers.

O*NET reports a predicted five to eight percent rise in employment of risk managers through 2024.

Financial Analysts

Insurers cover customers against risks and act as institutional investors. Financial analysts collect and assess sales, cash flow, management and other financially relevant data on their own companies and potential investments for the insurer. The analyst reviews financial statements and economic and industry trends to evaluate operations or investments. In regulatory agencies, financial analysts audit financial reports and other required filings. Their examinations focus on compliance with laws and regulations on:

  • sales
  • claims practices
  • advertising
  • underwriting
  • the sufficiency of capital or funding.

The U.S. Bureau of Labor Statistics projects a 12 percent rise in employment of financial analysts by 2024.

Underwriters

Decisions on applications reside in the underwriters’ realm. The underwriter approves or rejects an application and sets the terms of coverage, such as:

  • amount
  • length of time
  • deductible
  • premium

Underwriters analyze and enter into programs information furnished by applicants. Information on the potential insured may also come from:

  • credit checks
  • driving records
  • prior loss information
  • medical histories

Accurate application answers and analysis helps keep insurers from facing excessive claims by clients that could affect profits.

Depending on the insurer, software can automatically approve or deny applications. On that basis, the U.S. Bureau of Labor Statistics states that employment of underwriters should drop by 11 percent through 2024. However, specialty fields such as marine insurance may experience employment growth.

Chief Finance Officer

The chief financial officer leads the company’s fiscal activities. The CFO affords the chief executive officer and other management the financial perspectives of corporate strategy. The responsibilities include:

  • ensuring accurate and complete financial statements and data on policy sales
  • premiums collected
  • claims against or paid on policies

Oversight by the CFO also involves matters such as:

  • risk management
  • budgeting
  • forecasting future sales and expenses.

With the diversity of scenarios and perils faced by insurers and their customers, this industry offers many opportunities to use your finance background.

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