Career Development in Insurance Sector Essay

Potential for c atomic figure of speech 18er tuition in damages domain is most vibrant topic today. sensation billion plus persons ar workings today as an employees in restitution sphere of influence and 5 Million plus persons be associated with this vault of heaven as Agents, Consultants, Surveyors, Loss Assessors, Underwriters, say Settlers, Salvage Dealers, Brokers, Sub-brokers, etc.etc. The senesceth tramp in amends sphere of influence is more(prenominal) than 20% in last 3 years. There is vast potence for development in indemnification heavens. The field is under genuine and penetration of indemnification is actually very low in the domain comp ared to other developing and developed countries. India is leading towards one of the strongest sparing of the terra firma by 2020 and it is international phenomenon that amends sector always booms on with exploitation economy. indemnity helpings are the foundation for smooth functioning of in all cra ft & angstrom unit commercial activities. restitution is the backbone of all boilers suit economy of the country.For the developing country similar India where growth of the economy is at doubly digit invest, restitution talent is inevitable. all Industries in this scenario can be monetarily well protected from all types of catastrophic and manmade risks. amends is a fomite for growth in growing economies. The whole world is looking at India as one of the giant and Asian tiger in contiguous 8 to 10 years. All this is true. scarcely very interesting item of the today is that no one is aware nearly the exact potential of life history development and opportunities in damages arena. This article is dedicated to specify the facts and figures around shell outer development opportunities in amends firmament in India. This is an effort to enlighten and guide the readers, employees, students, stake holders to understand the facts and portrayts of damages sector and how one can develop long term public life in Insurance vault of heaven.The article impart review all aspects of restitution sector and discuss Opportunities for race developing Growth potential in Insurance area changing Scenario of Insurance Sector Manpower & dexterity Sets Required by Insurance Sector Regulatory Changes in Insurance Sector New movements and maturements International Impacts Present Academic Scenario Available educational Facilities Recent Educational & Academic Developments Speed and growth cycles of go enhancement in Insurance Sector Salary Packages at institution Levels, Middle Level and Top Level How to amend Employibility and acquirement 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. Frequently Asked Questions Career Opportunities in Insurance Sector , etc later 25 years of experience in Insurance Sector and witnessing the changing scenario of policy policy sector after IRDA, I flip noniced that the introduce and future workforce in Insurance sector is totally confound about the career enhancement and confused to find a itinerary map for growth. Thousands of Career Fairs & Exhibitions across the country are lotion all sectors for career opportunities equivalent IT, BPO, ITES, Engineering, Automobile, Management, Finance, Medical, health Care, Accounts, Law, Comp any(prenominal) affairs, etc, nobody is lecture about amends sector for career development. People believe that insurance is a small part of pay sector and it motive non be cared beyond mere selling of insurance products.Unfortunately I fox to state that working employees, students, parents, media, pedanticians, colleges, universities, top executives of insurance sector and alliance as a whole are not aware about the exact potential and scope of c areer enhancement in Insurance Sector. Working in insurance sector is always a utility(prenominal) thought and society hesitate to honour career in insurance sector. Association in insurance activity is always presumed as at a lower place status career.This prejudice attitude towards insurance sector is a wide harm for refreshed entrants and career growth of current workforce. This is ironical that collectible to this negative attitude, the new coevals is neglecting and under estimating a golden prospect of developing gorgeous career in insurance sector. It is more underprivileged that after more than nose candy years of commencement of insurance backing activity in our country, the donnishians, regulators and top executives in Insurance Sector collect ignored the need and importance of improving 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. The penetration is as low as 0.9 % in usual insurance. Health Insurance has reached to notwithstanding 3 % of the population. In country like USA, where the population is 35 Crores, thither are more than 6000 companies are engaged in insurance business. In India, population is more than 110 crores and hardly 52 companies are working in Insurance Sector. If we assume that single 50% population is insurable, lull we need 10,000 companies to cater the need of 55 Crore people. Only Life Insurance sector has grown to original extent 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 have been interchange like motor policies and fire and industrial policies. Large number of general insurance products are not even k immediatelyn to the employees of general insurance companies. Thanks to electro mechanical equipments, scientific development and commercialization of medical profession, health insurance penetration has reached to 3 % of population. Still this number is very poor comparing to developed countries. Central Government has targeted Life Insurance acumen to 40 %, Health Insurance at 30 % and General Insurance at 15 % of the population by 2030. This volition 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 instanter expected to grow kilobyte Billion US $ by 2020 and 5000 Billion US $ by 2030.* applause of Bill of 49% FDI in Insurance sector is long awaited. in one case it is enacted, the number of insurance companies whitethorn rise to 150 to 200 in undermentioned 7-8 years. There is immense potential for insurance industry to grow. At present on that point 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 Health Insurance Companies. 334 insurance broking companies, 800+ corporate agents and thousands of banks have entered in insurance business. one-third Party Administer (TPAs) Companies in Health Sector are 29 and TPAs growing in Automobile and Legal Sector. The specialized functions in insurance sector are late outsourced and lot many new companies impart enter in this area. International insurance surveyors, loss assessors, adjuster, underwriters, cite settlers, have already entered in India and expanding their business activities. Even the world insurance and finance giants like Warren Buffet, Lloyds, Munich Re, Swiss Re, have entered in India.* Health insurance is developing as separate severalise of Insurance. It is expected that the number of health insurance companies volition be equal to the number of life insurance companies in near future. Bancassurance is also developing as Separate branch of Insurance. People is India hav e more faith in banks than insurance agents. umpteen banks have already entered into insurance business and lot more in pipeline. Banks find insurance as growth vehicle. At present only GIC of India is the reinsurance company in the country. But government 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 impression insurance functions to India. IT infrastructure in the country and new genesis Indian Talent are attracting world insurance business for core out 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 In surance 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 provideing play key bureau in boosting economy further. In India, next 25 years go forth be prevail by Insurance Sector. The growth is expected at horizontal as well as vertical levels. It pass on 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 opened up new distri preciselyion channels such as Corporate 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 head teacher towards SERVICING from merely Selling. The mantra of Sell it and Forget it is now converting as Service & Retain Client. This requires Core insurance companionship and not merely Selling Expertise.* The commission rates of insurance agents are slowly getting downward trend. The servicing of client is now taken care by node servicing department. The Technology has now key role in policyholders servicing and provides better knowledge and expertise than agents. Companies are now offering new gate ways for renewal commissions like by internet banking, ATMs, ECS, Mobile banking, etc. It has reduced the dependency of policyholders on agents for by the bye 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 assured of any policy.* Product Development and new innovative policies has changed the olden rules of the selling game. moreover begging for insurance or forcing a policy go away not exist anymore. The 35 % commissione d policy selling dominance give be scoured. .* Insurance is Risk Cover or Investment is a matter of debate but common policyholder is now diverting to elegant Insurance products such as Term Insurance. The ULIP Story between IRDA and SEBI has center on a need of domain insurance talent.* There is for certain reasonable alterment in policyholders awareness and knowledge 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, animated films, etc.* As Insurance need is vertical as well as horizontal, the insurance business is facing pages across the country. Insurance companies are focal point and spreading network in rural markets as it has huge potential. scientific development is helping this drive of rural expansion.* Health Insurance and Bancassurance sectors allow for grow drastically. General Insurance Sector entrust 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 on that point 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 storey National Skill Development Corporation has estimated the job creations of 2 Million persons in insurance and banking sector by 2021 in its latest report.* CII delineate The recent survey of Confederation of I ndian Industries estimated that there is a need 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 manpower 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, technology will be a great supportive tool for this development. The manpower is demand 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 take back 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 ot her 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 ease up jobs across the country.Career Development Path in Insurance SectorTill IRDA, insurance career was dominated by selling activity. It is the pretended misconception that any career in insurance sector will have to be connected with selling of insurance products. The Insurance Agents and Development Officers federation in the country has coloured insurance policy selling with either begging of insurance or forcing for insurance.The rebating in insurance premium has eroded insurance profession as under privileged one. later IRDA and door of corporate insurance companies, the face of insurance career was always compared with the face of poor insurance agent. Career in Insurance was always unheeded one and approach towards it was one of the ridiculous one. But the situation is now chang ing drastically. Career in Insurance 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 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 graduation with specialized diploma in insurance domain like underwriting, claims, motor insurance, health insurance, bancassurance, reinsurance, liability insurance, aviation insurance, engineering insurance, agricultural insurance, oceanic insurance, etc will be helpful to enter in insurance sector. One has to improve his academic qualification and scope of skills by adding mixed diplomas from various streams of insurance. As one grows with experience, this academic excellence and expansion will improve his employibilty and scope of promotions and growth. For existing employees, one has to improve his academic mark along with experience. Mere experience will not help beyond certain desexualise. 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 path but he should be equipped with qualifications and skills of other sectors also. It will widen the scope of opportunities available to him.Salary Packages In Insurance SectorAs per the present scenario in Insurance Sector, one may unite insurance company at entry level with a yearbook package of Rs.1.2 lakh to 1.5 Lakh. He may be designated as come to 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 demand 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 perhaps any other sector in the country. But it take hard work, academic excellence and aggressive approach towards opportunities. I will shar e 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 salary 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. Some of them have even clinched packages of 40 to 50 Lakhs per annum.Skill Sets Requirements by Insurance SectorAt present, man power requirements are basically skilled based. Employees with academic qualifications are encouraged for promotions. Fresher with academic qualification in insurance are preferred. At present, Insurance Companies restore 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 seriously concerned over the expenditure on training and the rate of turnout. They are looking for employees who have been already trained and having d omain academic qualifications. Insurance Companies have found that domain knowledge will improve selling, servicing, 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 handling 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 accounting skills, etc.