Insurance roles

Insurance is defined as the act, system, or business of insuring property, life, the person etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved.

From insurance agents to actuaries and risk managers there is a broad range of options in insurance for
today’s graduates to choose from. Read on to learn about just some of the roles available:

Actuary
Insurance underwriter
Loss adjuster

Actuary

Main tasks
Actuaries apply knowledge of maths and probability theory, and analyse mathematical, statistical, demographic, financial, economic and social data to make predictions and assessments of long-term risks associated with financial decisions and planning. They may perform the following tasks:

  • analyse statistics (about death, accidents, economic trends etc.) to revise and design life insurance and superannuation policies
  • assess the risks and long-term effects of financial decisions
  • provide advice on investment and profit distribution to policy holders
  • ensure insurance companies’ financial reserves are sufficient to meet claims
  • make financial projections
  • analyse investment performance.

Key skills

  • strong verbal and written communication skills
  • strong ability in mathematics
  • ability to solve complex mathematical problems
  • clear and logical thinking.

Salary
According to the Institute of Actuaries of Australia, newly qualified actuaries can earn around $95,000–$110,000 and should expect generous annual pay increases. Senior and more experienced actuaries can earn around $200,000.

Employment prospects
In Australia, the number of qualified actuaries as at September 2007 was 1495. According to the Department of Education, Employment and Workplace Relations' (DEEWR) Australian Jobs 2008, job prospects for actuaries are currently good, however unemployment is above average. Future jobs growth to 2012-13 is expected to be slight.

Main employers
Traditionally, actuaries worked mainly for employers in the finance and insurance industries. Today, in addition to these traditional employers, opportunities for actuaries are opening in areas as diverse as health, education, the environment, public infrastructure, and genetics.

Find out more
Institute of Actuaries of Australia (IAA), www.actuaries.asn.au

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Insurance underwriter

Main tasks
Insurance underwriters are the decision makers of insurance companies. They assess insurance risks and determine premiums that should be charged. They may perform the following tasks:

  • review customer insurance applications
  • research and assess risks associated with different clients’ applications to determine the appropriate cover and terms that should be offered
  • calculate appropriate insurance premiums to be charged.

Key skills

  • sound judgement and decision-making skills
  • attention to detail
  • strong research and analytical skills
  • strong written and verbal communication skills
  • aptitude for working with computers.

Salary
According to Hays salary survey 2008, the starting salary for trainee insurance underwriters is around $40,000. With a few years’ experience, underwriters may earn around $60,000. Senior underwriters and underwriting managers can progress to salaries of around $120,000.

Employment prospects
According to DEEWR's Australian jobs 2008, job prospects for the category to which insurance underwriters belong (insurance agents) are currently average, unemployment is low, and future jobs growth to 2012–13 is expected to remain relatively stable. However, according to the Hays Salary survey 2008, there are currently shortages of senior underwriters.

Main employers
Insurance underwriters work predominantly for insurance companies.

Find out more
Australian and New Zealand Institute of Insurance and Finance (ANZIIF), www.theinstitute.com.au
Insurance Council of Australia (ICA), www.insurancecouncil.com.au

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Loss adjuster

Main tasks
Loss adjusters investigate insurance claims arising from incidents such as fires, car accidents, and burglaries. They may perform the following tasks:

  • visit the scene of an accident/incident to assess cause and effect
  • determine the precise damage or loss covered by a client’s insurance policy
  • report to the insurance company on the details and circumstances surrounding a loss
  • make recommendations to the insurer as to the replacement or repair of lost or damaged property
  • interview claimants and witnesses to assess the validity of claims.

Key skills

  • sound judgement
  • attention to detail
  • numeracy
  • strong verbal and written communication skills
  • aptitude for working with computers
  • legal knowledge.

Salary
According to leading recruitment specialists, the starting salary for loss adjusters is around $38,000. With a few years’ experience loss adjusters may earn around $55,000. Senior loss adjusters and those in managerial positions can earn up to around $120,000.

Employment prospects
According to DEEWR's Australian jobs 2008, job prospects for this occupation are currently good, and unemployment is below average. Future jobs growth to 2012–13 is expected to be strong.

Main employers
Loss adjusters work predominantly for insurance companies.

Find out more
Australasian Institute of Chartered Loss Adjusters (AICLA), www.aicla.org
Australian and New Zealand Institute of Insurance and Finance (ANZIIF), www.theinstitute.com.au
Insurance Council of Australia (ICA), www.insurancecouncil.com.au

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