How Can an Online Degree Help to Develop a Career in Insurance and Risk Management?

How Can an Online Degree Help to Develop a Career in Insurance and Risk Management?

Insurance and risk management professionals assess the potential financial risks associated with property and human life, health and circumstances, and determine the level of financial payout required to replace or compensate for their loss.

Broadly speaking, the companies that operate within the insurance industry are insurers, or insurance carriers, which are the large companies that provide insurance, and insurance agencies or brokerages, which sell insurance policies.

What Are the Main Job Roles in Insurance and Risk Management?

Some insurance and risk management professionals are generalists, while others specialize in specific areas of risk and insurance such as theft, public liability, health, or fire.

The main insurance and risk management job roles and responsibilities are:

• Actuaries establish the premium rates that insurance companies set by calculating the probability or risk of a loss occurring.
• Claims adjusters determine the extent of an insurance company's liability by inspecting damaged property and estimating the cost of replacing or repairing it.
• Claims examiners check the completeness and accuracy of claim applications and verify them with reference to policy files.
• Insurance investigators become involved in claims which the insurance company suspects might be fraudulent or connected to criminal activity.
• Insurance sales agents, also known as brokers or producers, sell insurance policies. They work with clients to determine their needs, find the appropriate insurance policies for them, and provide assistance with insurance claims.
• Management analysts, also known as loss control representatives, are risk assessors. They carry out a range of inspection and data analysis processes to determine the potential risks that threaten a business or organization and often advise on steps that can be taken to manage the risks they identify.
• Underwriters determine the risks to the insurer involved in issuing a policy, and the appropriate premium to set for each policy.

Do I Need a Degree to Begin a Career in Insurance and Risk Management?

On-campus or online degree programs that include subjects such as economics, law, business, or management can help to gain entry into the insurance and risk profession. A degree program that covers risk management or insurance is an advantage. For specialist roles such as engineering insurance surveying, a degree that covers that specialism is usually required. Professional training in insurance and risk management is often provided by insurance companies who hire college graduates with a liberal arts degree and send them to company schools or enroll them in outside institutes for professional training. A master's degree can help to gain advancement to higher level positions.

Gaining a degree or other professional qualification online is the ideal way to improve your credentials and advance your career without taking time out of your busy work schedule. Online degrees also offer a flexible way to gain the license necessary in most States to work as a claims examiner or adjuster, insurance investigator, or sales agent.

What Do Insurance and Risk Management Professionals Earn?

In general, insurance and risk management professionals earn more than their counterparts in other industries. In May 2008, the median annual wage or salary for insurance and risk occupations were:

• Actuaries: $84,810 (with the top ten percent earning over $160,780). The National Association of Colleges and Employers reports that annual starting salaries for graduates with a bachelor's degree in actuarial science averaged $53,754 in 2007.
• Claims adjusters, appraisers, examiners, and investigators: $55,760, (with the top ten percent earning over $84,260)
• Financial managers, including risk and insurance managers: $99,330 (with the top twenty five percent earning over $135,070).
• Insurance sales agent: $45,430, (with the top ten percent earning over $113,930). Employees may also earn commission or a bonus.
• Insurance underwriters: $56,790 (with the top ten percent earning over $99,940).

Where Might I Find Employment?

Many insurance sales brokers work independently. There are hundreds of insurance companies in the U.S. Many are national or international companies. Others operate only locally. The three biggest Insurance companies in the U.S. in terms of market value are American International Group, Prudential Financial, and MetLife. The other largest Insurance companies are in France, Germany, Japan, Italy, the United Kingdom, and the Netherlands.