Insurance jobs are gaining rapid popularity these days, even among millennials. Their perception of insurance jobs has significantly changed over the years. And now, they consider insurance jobs to very respectable. A survey conducted in 2017 by Vertafore, the largest provider of technology for the insurance industry in the US, stated that 72% of millennials plan to work in insurance as long as possible. Moreover, 87% of millennials would recommend a career in insurance to their friends.
Likewise, approximately 10,000 baby boomers are retiring every day as of 2019, according to Investopedia, an American website that provides investing and finance education. Since insurance is an industry dominated by baby boomers, a workforce crisis might hit the industry sooner or later. Hence, carriers and employers are trying hard to get millennials to fill up the insurance jobs.
As such, what are some of the vital things that millennials need to understand while pursuing insurance jobs? Let’s find out.
Insuring People Vs. Insuring Things
Insurance has two major subsets: life/health and property/casualty. They’re often known as life insurance and property and casualty (P&C) insurance. As clear as it is from the name itself, life/health insurance deals with protection for life and health. It also includes protection against long term care and disability. P&C insurance, on the other hand, insures the physical belongings, properties, and resources of people, organizations, and businesses.
So, one must decide which line of insurance to get into. If we look into statistics, insurance jobs in P&C sector are doing well in comparison to the life/health sector. According to S&P Global Market Intelligence, a corporation specializing in financial information and analytics, the net premiums were written in the P&C industry totaled $1.22 trillion in 2018, accounting for 51 percent, and that in the life/annuity sector accounted for 49 percent.
The Compensation Types
Salary is one of the first concerns while considering any job. In the case of insurance jobs, the compensation can be both as a salary-basis or commission-based. In insurance jobs like underwriters, actuaries, claims adjuster the pay method is salary model. Whereas in jobs like agents, counselors, and, advisors both basis are in use. Compensation types may also differ depending on the state, and the carriers, which is a reason why the pay varies in different locations.
The Tradeoffs Can Be a Real Deal
Aside from full monetary compensation, insurance companies can also offer other benefits. These benefits may be provided along with or in replacement of monetary compensation. Such benefits include things like training, marketing resources, career support in education, loan provisions, etc. For some people, these offers are ideal with the logic that it will pay off in the long run. But for other people, such proposals are worthless, and they’d rather prefer full monetary reimbursements.
These are just a few of the considerations that millennials need to contemplate for getting insurance jobs. If they are serious about getting into the insurance industry, they need to research furthermore. Nevertheless, we hope you found this article informative and helpful. For any queries, drop them down in the comments section below!