The Insurance Industry

1
The Insurance Industry

• Prepared by the Diamonds
• Mary Keegan Bruce Penn
• Kathy Rehn Kristin Waiting
• Glenn Fitze Rose Truglio

2
Overview and Trends

• Approx. 1800 U.S. companies offer personal and
  commercial lines
• Function as financiers
• Protects the economy against losses of all kinds
• After 9/11/01, stopped writing terrorist policies

3
Overview continued...

• Insurers, banks, and securities brokers can merge
  and cross sell each others lines
• More of an investment-management focus
• They are forming strategic alliances, many
  mergers happening in industry
• Act as large investors in our economy

4
Job Outlook

• Companies seek tech-savvy candidates
• Internet Sales has reduced need for Insurance
  Agents
• Growth in systems analysts, adjusters, and
  examiners

5
Job Descriptions and Requirements
6
Actuaries

• Blood and guts number crunchers
• Determine risks and statistically render social
  trends
• Must have strong mathematical reasoning and
  statistical background
• College Degree a must

7
Agent or Broker

• Sell policies
• Personal lines limitless accounts
• Business lines Fewer customers, larger accounts
• Product Line Knowledge imperative
• Great Interpersonal Skills
• State Licensing Exam

8
More careers

• Service Representative
• Liaison to public
• Product knowledge
• College degree reqd
• Underwriter
• Evaluates applications and decides if premium
  justifies risk.
• College degree reqd
• Information Technology
• Manage data/information
• Computer skills and experience
• Technical degree or credentials preferred

• Claims Adjuster
• Negotiate claims
• People Skills
• No College required
• Loss-Control Specialist
• Prevention analysis
• Knowledge of safety
• College required
• Risk Manager
• Advise management
• Manage benefit plans
• Degrees/Work Experience

9
Typical Salaries/ Compensation

• A comparison

10
Earnings Statistics

• Weekly earnings of nonsupervisory workers
  averaged 675 in 2000.
• Median Hourly earnings range from
• 11.83 entry level office assistant
• to
• 40.23 General Manager of an independent
  insurance agency.

11
Whats to Love?

• Growth Oriented
• Life insurance
• Long term care
• Retirement investment
• Bonus of work flexibility
• Technological Outlook
• Computer aided software tools
• Image processing
• Client/server systems
• Pen-based computers

12
Love?

• Industry Extensions
• Actuarial Tables
• Direct Marketing
• Financial Planning
• Derivatives

13
Whats to Hate?

• No Job is Safe
• Computerization
• Consolidation
• Competition
• Bureaucracy
• Memo everyone
• Company policies
• No creativity
• Heartless
• No reimbursement for AIDS
• Loss ratio
• Conscience?

14
Who are they? Top 5 in U.S.A.

• 1. American International Group
• 2. State Insurance
• 3. Berkshire Hathaway
• 4. Met Life
• 5. Allstate

15
Top 5 on Long Island

• 1. Aon Group, Melville
• 2. Treiber Insurance Group, Garden City
• 3. BWD Group, Jericho
• 4. Marsh USA, Melville
• 5. Allied North America, Jericho

16
Professional Associations

• ALLIANCE OF AMERICAN INSURERS
• [phone]
• www.allianceai.org
• AMERICAN ACADEMY OF ACTUARIES
• [phone]
• www.actuary.org 
• AMERICAN ASSOCIATION OF MANAGING GENERAL AGENTS
• [phone]
• www.aamga.org
• AMERICAN INSURANCE ASSOCIATION
• [phone]
• www.aiadc.org

17
Wait, theres more...

• INDEPENDENT INSURANCE AGENTS OF AMERICA
• [phone]
• www.iiaa.org
• INSURANCE INFORMATION INSTITUTE
• [phone]
• www.iii.org
• LIFE OFFICE MANAGEMENT ASSOCIATION
• [phone]
• www.loma.org
• NATIONAL ASSOCIATION OF INDEPENDENT INSURERS
• [phone]
• www.naii.org
• NATIONAL ASSOCIATION OF INSURANCE WOMEN
• [phone]
• www.naiw.org

18
There are many, many more.
19
The College Connection on L.I.

• Employers prefer college graduates for all sales,
  managerial, and professional jobs.
• The preferred degrees will have a major in
  business, economics, finance, or accounting.
• The ability to operate computers is essential.
• Continuing education is a requirement for most
  jobs.

20
Where to go?

• Adelphi
• Dowling
• Hofstra
• CW Post
• Southampton College

• NYIT ( New York Institute of Technology)
• SUNY Farmingdale
• SUNY Old Westbury
• Molloy College

21
Continuing Education and Credentials

• Underwriters
• AU ( Associate in Commercial Underwriting) takes
  1 to 2 years combines courses and exams
• CPCI ( Chartered Property and Casualty
  Underwriter) takes 5 years and 10 exams
• Life and Health Insurance
• CLU ( Chartered Life Underwriter)
• RHU (Registered Health Underwriter)

22

• Claims adjuster/Examiner
• AIC ( Associate in Claims)
• RPA ( Registered Professional Adjuster)
• CPPA ( Certified Professional Public Adjuster)
• SPPA (Senior Professional Public Adjuster)
• ALHC (Associate Life and Health Claims)
• FLHC (Fellow Life and Health Claims)
• Actuary
• Series of National Exams to become fully
  qualified, takes approx. 5 to 10 years.
• Agents
• Must be licensed by the states in which they
  sell.
• Additional licenses to sell mutual funds,
  securities or other financial goods.

23
Insurance is all about risk.

• In summary, employment opportunities will
  continue in this industry. Lower than average
  growth for agents but replacements and support
  staff will continue to be necessary.

The End.