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    CAREER IN INSURANCE SECTOR:OPPORTUNITIES AND

    CHALLENGES

    Introduction

    In India, the concept of insurance was never a given aseriousthought, as compared to other countries.

    Presently in India, the insurance sector is nationalized,services arerendered by Life Insurance CorporationofIndia (LIC) and General

    InsuranceCompany (GIC)along with its 4 subsidiaries.

    While LIC provides life insurance, GIC is concerned withnon lifeinsurance like - motor, marine, fire, health andpersonal accidentinsurance.

    LIC employs people in various departments

    Publicity and public relation department Development department Personnel department Accounts department Actuarial department Secretarial department Legal department Investment department Inspection department Mortgages department Vigilance department Foreign department Corporate planning department Building department etc. With the passage of the Insurance Regulatory andDevelopment

    Authority (IRDA) bill, entry of private Indianas well as foreign

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    companies, along with existingplayers, in the insurance sector will

    add variety andquality to the present insurance services

    This resulted in creation of new employmentopportunities .Nature of work

    The insurance corporation performs varioustasks with eachdepartment having its own set ofresponsibilities. The various posts

    and theirspecific jobs are mentioned hereupon.

    Administrative Officer And Assistant Administrative Officer

    Administrative Officer (AO) and Assistant AdministrativeOfficer(AAO) belong to the class I officer group.

    The job begins with the candidates joining LIC and GICon aprobation-cum-training period of 6 months. This isto provide

    exposure about the working of insurancesector.

    AAOs can choose any of the areas fromAdministration,Development and Accounts.

    Administration AAOs handle policy making, policy claimsup tocertain limit, checking clauses and details, filingofficial returns and

    statements to higher regional officesetc.

    The Development AAOs deal with marketing andprocurement ofbusiness, promoting policies, gettingcontracts etc.

    The Accounts AAOs manage the funds includingincomes andexpenses of the corporation.

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    After 3 years of working as AAOs they can be promotedto AOs.This adds on more powers and authority andthey can be posted

    anywhere in India

    Qualifications needed

    Candidates applying for the post of AAOs should bebetween 21and 28 years of age.

    They should hold a graduate/postgraduate degree in anysubjectwith minimum of 50% marks.

    Recruitment is done by LIC Central Office at Mumbai. The entrance examination has two papers, one is ofobjective type

    and the other is of essay type - test ofEnglish

    Development Officer

    The Development Officer belongs to class II officergroup.

    They are incharge of their territory for the developmentof the insurance

    policies.

    They handle recruitment of agents, train them forprocurement of new

    business and servicing of theexisting policies.

    Over a period of time Agents recruited by theDevelopment Officers can

    also rise to the position ofthe Development Officer.

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    Qualifications needed

    The candidates applying for these posts have to gothrough a written test

    and an interview.

    There are reservations in the jobs for Handicappedpersons, SC/ST, ex-

    servicemen.

    The age requirement for these posts is between 18 to 25years.

    Apart from people directly working in the insurancecompanies, thereare other categories of people related to theinsurance sector. These

    include the following :-

    Insurance Agents

    An insurance agent is a person who takes up agencyfrom the insurance

    company to sell their policy on acommission basis.

    He acts as an intermediary between the insurancecompany and the

    policy holder .

    They plan for the financial security of individuals, familiesand

    businesses and advise them about insuranceprotection.

    They also help the policy holders at the time ofsettlement of the claim.

    Qualifications needed

    Recruitment of agents is done by theCorporation after a written test

    and an interviewfollowed by a training period of 3 years.

    Graduates in the age group of 21 to 35 yearsare preferred

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    Insurance Surveyors

    Insurance surveyors are qualified professionals deputedfor the

    assessment of losses, according to theirqualification and experience.

    They play an important role as they serve a link betweenthe insurer and

    the insured.

    Their job is to assess the actual loss and avoid falseclaims filed by theinsured and on the other hand helpthe insured who has suffered a

    genuine loss byindemnification of the loss.

    They Act As Investigators, Assessors For DeterminingThe Loss And

    Liability To Be Reported To The InsuranceCompany.

    Surveyors Are Not Employees Of The InsuranceCompanies. They Are

    Independent Professionals WhoAre Hired By The Insurance Companies.

    .

    To Hold A License Of A Surveyor, One MustPossess Any One

    Of The Following Qualifications.

    Fellowship Or Associate ship Of The Institute OfInsuranceSurveyors And Adjustors (IISA), Mumbai.

    A Degree or Diploma in Architecture of a RecognizedUniversityor Institute.

    Fellowship or Associate ship of the Institute ofCharteredaccountants or Cost and WorksAccountants.

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    A Degree or Diploma of a Recognized Institute ofEngineering.A Degree or Diploma in Naval Architecture

    ActuarialAn actuary holds one of the most important position in aninsurance

    business.

    He is involved in solving wide range of financialproblems related withinsurance investments, financialplanning and management.

    Graduates in mathematics or statistics are suited for thiskind of a job

    because the work is based on mathematicaland statistical skills.

    In the coming times it will definitely make one of thehighly paid career

    option in the insurance sector.

    Entry level salary is expected to be somewhere aroundRs. 8 lakh p.a.

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    For an organization to be successful in the long run, it is very

    essential that its employeesat everylevelare well-trained in their

    respective domains; and are equipped with the latest techniquestoacquit themselves creditably. This is an area that is additionally

    sensitive in the Indian insurancedomain because unlike several

    other areas of operation, even within the financial services

    space;insurance has been kept out of formal education at any level

    historically, from schooling up to theuniversity. More recently, it

    has been observed that some universities have been offering courses

    ininsurance although a lot more needs to be achieved. It has led to asituation where one has to look atthe industry personnel to double

    up as trainers. Owing to their professional rigors as also the lack

    of experience and skills, insurance has remained one domain where

    the availability of skilled trainingpersonnel is very limited.But what

    does it take to get into this sunrise sector that is growing ever since

    privatization of theinsurance industry? This article presents a

    factual report on the insurance sector as a whole, thenumber ofplayers operating in this space, the career opportunities available in

    this industry, thecourses available for getting formal qualifications,

    the career path in a typical private insuranceorganization and the

    skills necessary to get selected and be successful in this sunrise

    industry.

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    C o n t e n t s

    Insurance Overview4

    Insurance Courses6Career opportunities in Insurance industry11

    Opportunities for various categories of job seekers17

    Career path in the private insurance sector19

    Skills/ Traits required for getting selected20

    Demand-Supply Challenges -- 21

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    INSURANCE OVERVIEW

    In a market where the nuances are yet to be understood totally by

    the public, the role of the distributoris very vital. It is essential thatthe distributor, as such, is well-trained; and identifies the needs of

    theprospect and assists him in making an informed decision. In this

    competitive world, it is only the bestthat survive and it puts the onus

    on the distribution personnel to be updated with the changes

    fromtime to time. It does not need to be mentioned that there is need

    to see beyond mandated levels of training. The skills of the

    distribution personnel have to be ably supported by an equally

    efficient set of back-up staff in order that the business cycle iscomplete. It presupposes the staff being adept at allaspects of

    functioning. Managements should identify the needs of their staff

    being provided withrefresher and reorientation courses from time to

    time so that the entire team works as a well-oiledunit. Further, there

    should also be incentives/rewards for higher learning by staff

    members that wouldbe useful for their regular working.The INDIA-

    TODAY-Ma Foi Employment Trends Survey (March 2010) puts the

    Insurance sec