The Indian insurance industry has come full circle
from being an open competitive market to nationalization and back
to a liberalized market again. Ripples of competition are being
clearly felt the public sector companies as well as the private
ones. All companies are going in for product innovation, a complete
distribution network, prudent investment management, customer service
and education.
The insurance business is divided into four classes: Life Insurance
business, Fire, Marine and Miscellaneous Insurance. Life Insurers
transact life insurance business; the rest is transacted by General
Insurers. In the area of General Insurance, Fire and Miscellaneous
insurance businesses are predominant. Motor Vehicle insurance is
compulsory.
Actuaries calculate the probability of certain events occurring.
Their statistical research and findings help determine the potential
financial risk and loss to an insurer.
Underwriters are responsible for assessing the extent of a given
risk and deciding its acceptability for insurance cover; deciding
whether any special terms or conditions should be applied to the
risk; deciding the appropriate premium for the risk.
The agent of advisor as they are sometimes called help individuals,
families and businesses select insurance policies that provide the
best protection for their lives, health, property, etc.
Loss assessors and surveyors operate independently of insurance
companies but are appointed by them to investigate the circumstances
surrounding an insurance claim. Essentially, the duty of the adjuster/
surveyor is to act as an intermediary between the insurer and the
policyholder, helping to settle valid claims as speedily as possible,
and for an amount that is fair to both insurer and insured.
Risk and Insurance Managers aim to minimise risks and losses. The
underwriting risk, operational risk, financial risk etc are some
of the critical risks that insurance companies have to manage.
Insurance broking now promises to impart a professional character
to risk coverage as a business. The broker acts as an intermediary
between the companies and insurers and represents the insurance
buyer. Insurance brokers differ from agents who represent the insurance
carrier and not the client. There are three types of licensing for
brokers-direct (life and non-life and excluding reinsurance), composite
(direct and reinsurance) and reinsurance.
The skill set
Insurance offers opportunities for people with varied personalities.
Characteristics such as curiosity, discernment, perception, discretion
and the ability to work carefully with attention to detail can be
beneficial for underwriters. They must be decisive. Loss adjusters
and surveyors are individuals who generally enjoy meeting people,
are diplomatic, flexible, and willing to work unsociable hours and
working outside the office. Aspiring actuaries need to have a practical
outlook, problem-solving skills, probing curiosity and business
sense with highly developed interpersonal communication skills.
Becoming an agent would suit individuals who are self confident,
friendly, helpful, tactful, can communicate with people from all
levels of society and at varied levels of intellect, who can be
persuasive, meticulous, pay attention to detail, possess energy
and enthusiasm and self-confidence.
Back office operations personnel must be organised, meticulous,
team players, proficient in handling computers with excellent communication
skills.
Managers in the insurance industry should possess organizing ability,
ability to grasp details quickly, good judgement, decision making
ability, a systematic approach, discipline, an analytical brain
and interpersonal communication skill.
Training Programmes
MBAs may join the industry in various fields of work related to
their areas of specialisation, be it in marketing, finance, human
resource development, etc. However, for those who wish to focus
only on the insurance industry, insurance management as a specialisation
is being offered in many management schools as part of their postgraduate
management programmes. There are also specific insurance management
postgraduate programmes also coming up.
Many universities are introducing insurance as a vocational stream
during graduation too. Actuarial training can be pursued directly
with the Actuarial Society of India. Insurance Institute of India
conducts Licentiate, Associateship and Fellowship plus other training
programmes for insurance services.
Surveyors (to be licensed by the Controller of Insurance) may be
engineers, accountants, medical graduates, other graduates, etc.
Loss assessors may come with a background of experience in the insurance
industry, but experience in engineering, quantity surveying, accountancy
or the legal profession is also relevant. Mostly surveying is a
technical role and employers favour graduates with an engineering
or scientific degree.
There is no degree subject that fully equips job applicants for
an underwriting career, but subjects like business studies, economics,
law, science and engineering, biology, physiology and medical studies
can provide new entrants with background information which could
be useful in their work.
Prominent Institutions
- Actuarial Society of India, 9 Jeevan Udyog, 278 Dr. D.N Road,
Fort, Mumbai-400001 (www.actuariesindia.org)
- National Insurance Academy School of Management, (www.niapune.com)
- Insurance Institute of India, Universal Insurance Building,
6th Floor, Sir P.M.Road, Mumbai-400001(www.insuranceinstituteofindia.com)
- Institute of Insurance Surveyors and Adjusters, General Assurance
Building, 2nd Floor, 232, Dr. D.N.Road, Mumbai-400001
- Institute of Insurance & Risk Management, 310 Road No 25,
Jubilee Hills, Hyderabad-500033(www.iirmworld.com)
- International Institute for Insurance and Finance, Platinum
Jubilee Building, Osmania University Campus, PGRRCDE, Hyderabad-500007
(www.iiifindia.com)
- Amity School of Insurance and Actuarial Science (ASIAS), Amity
Campus, Sec 44, NOIDA-201301 ( www.amity.edu/)
- Jaipuria Institute of Management, Vineet Khand, Gomtinagar,
Lucknow-226010
- Jaipuria Institute of Management, Noida at A-32 A, Sector
62, NOIDA-201301
- Birla Institute of Management & Technology, Pushpa Vihar,
Sector-IV, New Delhi-110017[ www.bimtechindia.org
]
- Institute of Integrated Learning in Management, Lodhi Institutional
Area, Lodhi Road, New Delhi-110003 [ www.iilm.edu
]
- CMD School of Insurance and Actuarial Sciences, Modinagar
(UP)-201 204 [www.cmd.edu]
- NMIMS, Insurance Centre,V.L.Mehta Road, Vile Parle (W), Mumbai
- 400056 [ www.nmims.edu
]
- Asia-Pacific Institute of Management, Opp Pocket-E, Sarita
Vihar, New Delhi-110044 (www.asiapacific.edu)
- National Law University, Jodhpur, NH-65, Nagaur Road, Mandor,
Jodhpur- 342304 [ www.nlujodhpur.ac.in
]
[Listing is indicative, not exhaustive]
Prospects
The industry offers a wide range of career opportunities as actuary,
underwriter, risk managers, loss adjusters and surveyors, financial
planning advisor, customer service and back office operations. There
is vast scope for entrepreneurship too.
As part of the ongoing financial sector reforms programme of the
Government of India, the Indian insurance market was opened fully
to competition in the year 2000 and now the industry has a mix of
public and private players both in the life and non-life business.
The four subsidiary companies of General Insurance Corporation (GIC)
Oriental Insurance Company Limited, New India Assurance Company
Limited, National Insurance Company Limited and United India Insurance
Company Limited have been de-linked from GIC and made as independent
insurance companies. GIC has been designated as a national reinsurer
to function as Life and Non-Life Reinsurance Company.
Post liberalisation, the non-life insurance market is growing at
15-20% and expected to grow rapidly in the near future. India has
the potential to become a regional reinsurance hub. Life insurance
could well turn out to be the fastest growing segment in the financial
sector in 2004 given that new business has been forecast to grow
at 20-25%. By next year, India could become the back office for
the global insurance industry.
