The insurance industry, a huge sector of the U.S. economy, allows institutions and people to manage risks. The two main varieties of insurance companies are insurance carries which offer insurance and the agencies and brokerages which sell insurance plans for one or several insurance carriers. Also, the insurance industry includes a range of supporting businesses including loss-prevention firms, claim adjusters and companies processing claims forms for medical practitioners. Some insurance companies also sell securities, mutual funds and retirement plans.
Typically, insurance companies need investment income to be profitable because usually premiums alone are not adequate to pay insurance claims. Insurance companies use investment income in calculating the rates required to meet claim obligations. Occasionally, the major carriers minimize their risk by purchasing reinsurance; insurance policies for insurance companies.
Insurance Employment - Employer Reviews
- Aflac Careers
- AIG Careers
- Allstate Insurance Careers
- Andesa Services Careers
- Anthem Careers
- Arkansas Blue Cross Blue Shield Careers
- Auto-Owners Insurance Careers
- Bankers Life and Casualty Careers
- CNA Insurance Careers
- Farmers Insurance Careers
- Geico Careers
- Grinnell Mutual Reinsurance Careers
- Healthnet Inc Careers
- HMO Blue Careers
- Horst Group Careers
- ICAN Benefit Group Careers
- InSphere Insurance Solution Careers
- Markel Corporation Careers
- Medcost, LLC Careers
- Mercury Insurance Careers
- Metlife Careers
- Nationwide Insurance Careers
- Palmetto GBA Careers
- Progressive Careers
- Prudential Careers
- Rain and Hail Insurance Careers
- Regence BlueCross BlueShield of Oregon Careers
- State Farm Insurance Careers
- Travel Guard Careers
- In 2009, the U.S. insurance industry's net premiums totaled $934 billion, with 55 percent of premiums recorded by life/health insurers and 45 percent of premiums recorded by property/casualty insurers (Insurance Information Institute, Inc. (iii))
- In the United States in 2009, there were 2,737 property/casualty insurance companies and 1,106 life/health insurance companies (iii)
- In 2009, insurance carriers and related activities accounted for $425 billion; 3 percent of U.S. gross domestic product (iii)
- The 50 largest insurance carriers account for about 60 percent of the insurance industry's revenue (First Research, 2011 report)
- The US insurance agency and brokerage industry has about 135,000 establishments (single-location firms and branches of multi-location firms) with annual revenue of approximately $110 billion (First Research, 2011 report)
Insurance Industry Facts Employment Background
The insurance industry has workers with a range of skills and experience. A large number of the jobs are office and administrative positions which usually require only a high school diploma. Other areas include finance, management, underwriting, sales, accounting and computer systems. Employers typically prefer those with a college degree for managerial, sales and professional positions.
A growing number of customer service representatives work in 24/7 call centers. They update policy information, answer clients' questions as well as provide information to prospective clients about the types of insurance policies the company provides.
Insurance companies also employ sales managers, marketing managers, claim adjusters, examiners, appraisers and investigators who take care of claims when fraud or criminal activity is suspected. Management analysts, also known as loss control representatives evaluate various risks faced by insurance firms. Underwriters assess insurance applicants in order to determine the risk of issuing an insurance policy.
Insurance Industry Facts Employment Statistics
- In 2010, the U.S. insurance industry employed 2.2 million workers (iii)
- In 2008 Insurance carriers were the largest segment in the industry accounting for 61 percent of the jobs (Bureau of Labor Statistics (BLS))
- Insurance agencies, brokerages and companies providing other insurance-related services accounted for 39 percent of the jobs in 2008
- Insurance carriers often employ 250 or more workers, whereas insurance agencies and brokerages often employ less than 20 workers (BLS)
- Office and administrative support workers accounted for 42.2 percent of the jobs in 2008 (BLS)
- In 2008, employees in management, business and financial occupations held 29.1 percent of the jobs (BLS)
- In 2008, claims adjusters, examiners and investigators held 9.2 percent of the jobs (BLS)
- Sales and related occupations accounted for 16.5 of the jobs in 2008 (BLS)
- The industry is capital-intensive; the average annual revenue per employees is approximately 1 million (First Research, 2011 report)
Insurance Industry Facts Employment Outlook
The Bureau of Labor Statistics forecasts a 3 percent employment growth for the insurance industry from 2008 to 2018, compared to the 11 percent employment growth projected in all industries combined. According to the Bureau of Labor Statistics, employment growth in the insurance industry will be limited due to corporate downsizing, new technology as well as increasing direct mail, Internet and telephone sales, however numerous jobs will be available due to the need to replace workers who leave the insurance industry or retire.
Medical services and health insurance are growing segments of the insurance industry. The insurance industry is also growing due to expanding into other financial services including securities and mutual funds. According to the BLS, opportunities will be best for sales agents who offer more than one type of insurance or financial service. Opportunities are expected to be good for adjusters because they're still needed to interview witnesses and inspect damages.