Occupations in the Industry
About 44 percent of insurance workers are in office and administrative support jobs such as those found in every industry (table 1). Many office and administrative support positions in the insurance industry, however, require skills and knowledge unique to the industry. About 29 percent of insurance workers are in management or business and financial operations occupations. About 16 percent of wage and salary employees in the industry are sales workers, selling policies to individuals and businesses. Several others are employed in computer and mathematical science occupations.
Office and administrative support occupations. Office and administrative support occupations in this industry include secretaries, typists, word processors, bookkeepers, and other clerical workers. Secretaries and administrative assistants perform routine clerical and administrative functions such as drafting correspondence, scheduling appointments, organizing and maintaining paper and electronic files, or providing information to callers. Bookkeeping, accounting, and auditing clerks handle all financial transactions and recordkeeping for an insurance company. They compute, classify, update, and record numerical data to keep financial records complete and accurate. Insurance claims and policy processing clerks process new policies, modifications to existing policies, and claims forms. They review applications for completeness, compile data on policy changes, and verify the accuracy of insurance company records. Customer service representatives have duties similar to insurance claims and policy processing clerks, except they work directly with customers by processing insurance policy applications, changes, and cancellations over the phone. They may also process claims and sell new policies to existing clients. These workers recently are taking on increased responsibilities in insurance offices, such as handling most of the continuing contact with clients. A growing number of customer service representatives work in call centers that are open 24 hours a day, 7 days a week, where they answer clients’ questions, update policy information, and provide potential clients with information regarding the types of policies the company issues.
Management, business, and financial operations occupations. Top executives direct the operations of an independent insurance agency, brokerage, or a large insurance carrier. Marketing managers direct carriers’ development of new types of policies that might appeal to the public and strategies for selling them to customers. Sales managers direct the activities of the sales workers in local sales offices of insurance carriers and independent agencies. They sell insurance products, work with clients, and supervise staff. Other managers who work in their companies' home offices are in charge of functions such as actuarial calculations, policy issuance, accounting, and investments.
Claims adjusters, appraisers, examiners, and investigators decide whether claims are covered by the customer’s policy, estimate and confirm payment, and, when necessary, investigate the circumstances surrounding a claim. Claims adjusters work for property and liability insurance carriers or for independent adjusting firms. They inspect property damage, estimate how much it will cost to repair, and determine the extent of the insurance company’s liability; in some cases, they may help the claimant receive assistance quickly in order to prevent further damage and begin repairs. Adjusters plan and schedule the work required to process claims, which may include interviewing the claimant and witnesses and consulting police and hospital records. In some property-casualty companies, claims adjusters are called claims examiners, but in other companies, a claims examiner’s primary job is to review claims to ensure that proper guidelines have been followed. Only occasionally—especially when disasters suddenly increase the volume of claims—do these examiners aid adjusters with complicated claims.
In the offices of life and health insurance carriers, claims examiners are the counterparts of the claims adjuster who works in a property and casualty insurance firm. Examiners in the health insurance carriers review health-related claims to see whether the costs are reasonable based on the diagnosis. Examiners check claim applications for completeness and accuracy, interview medical specialists, and consult policy files to verify information on a claim. Claims examiners in the life insurance carriers review causes of death and also may review new applications for life insurance to make sure that the applicants have no serious illnesses that would prevent them from qualifying for insurance.
Insurance investigators handle claims in which companies suspect fraudulent or criminal activity, such as suspicious fires, questionable workers’ disability claims, difficult-to-explain accidents, and dubious medical treatment. Investigators usually perform database searches on suspects to determine whether they have a history of attempted or successful insurance fraud. Then, the investigators may visit claimants and witnesses to obtain a recorded statement, take photographs, inspect facilities, and conduct surveillance on suspects. Investigators often consult with legal counsel and are sometimes called to testify as expert witnesses in court cases.
Auto damage appraisers usually are hired by insurance companies and independent adjusting firms to inspect the damage to a motor vehicle after an accident and to provide unbiased estimates of repair cost. Claims adjusters and auto damage appraisers can work for insurance companies, or they can be independent or public adjusters. Insurance companies hire independent adjusters to represent their interests while assisting the insured, whereas public adjusters are hired to represent the insured’s interests against insurance carriers.
Management analysts, often called loss control representatives in the insurance industry, assess various risks faced by insurance companies. These workers inspect the business operations of insurance applicants, analyze historical data regarding workplace injuries and automobile accidents, and assess the potential for natural hazards, dangerous business practices, and unsafe workplace conditions that may result in injuries or catastrophic physical and financial loss. They might then recommend, for example, that a factory add safety equipment, that a house be reinforced to withstand environmental catastrophes, or that incentives be implemented to encourage automobile owners to install air bags in their cars or take more effective measures to prevent theft. Because the changes they recommend can greatly reduce the probability of loss, loss control representatives are increasingly important to both insurance companies and the insured.
Underwriting is another important management and business and financial occupation in insurance. Underwriters evaluate insurance applications to determine the risk involved in issuing a policy. They decide whether to accept or reject an application, and they determine the appropriate premium for each policy.
Sales and related occupations. Insurance sales agents, also referred to as producers, may work as exclusive agents, or captive agents, selling for one company, or as independent agents selling for several companies. Through regular contact with clients, agents are able to update coverage, assist with claims, ensure customer satisfaction, and obtain referrals. Insurance sales agents may sell many types of insurance, including life, annuities, property-casualty, health, and disability insurance. Many insurance sales agents are involved in “cross-selling” or “total account development,” which means that, besides offering insurance, they have become licensed to sell mutual funds, annuities, and other securities. These agents usually find their own customers and ensure that the policies sold meet the specific needs of their policyholders.
Professional and related occupations. The insurance industry employs relatively few people in professional and related occupations, but they are essential to company operations. For example, insurance companies’ lawyers defend clients who are sued, especially when large claims may be involved. These lawyers also review regulations and policy contracts. Nurses and other medical professionals advise clients on wellness issues and on medical procedures covered by the company’s managed-care plan. Computer systems analysts, computer programmers, and computer support specialists are needed to analyze, design, develop, and program the systems that support the day-to-day operations of the insurance company.
Actuaries represent a relatively small proportion of employment in the insurance industry, but they are vital to the industry’s profitability. Actuaries study the probability of an insured loss and determine premium rates. They must set the rates so that there is a high probability that premiums paid by customers will cover claims, but not so high that their company loses business to competitors.
Table 1. Employment of wage and salary workers in insurance by occupation, 2006 and projected change, 2006-2016.
(Employment in thousands) | Occupation | Employment, 2006 | Percent
change,
2006-16 |
| Number | Percent |
All occupations | 2,316 | 100.0 | 7.4 |
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|
|
|
Management, business, and financial occupations | 661 | 28.6 | 8.3 |
General and operations managers | 41 | 1.8 | -1.9 |
Marketing and sales managers | 20 | 0.9 | 7.2 |
Computer and information systems managers | 14 | 0.6 | 5.9 |
Financial managers | 24 | 1.0 | 6.6 |
Claims adjusters, examiners, and investigators | 218 | 9.4 | 10.8 |
Insurance appraisers, auto damage | 12 | 0.5 | 12.0 |
Human resources, training, and labor relations specialists | 28 | 1.2 | 10.9 |
Management analysts | 29 | 1.2 | 5.4 |
Accountants and auditors | 40 | 1.7 | 7.8 |
Financial analysts | 16 | 0.7 | 16.9 |
Insurance underwriters | 91 | 3.9 | 5.6 |
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|
|
|
Professional and related occupations | 258 | 11.2 | 8.6 |
Computer programmers | 21 | 0.9 | -15.1 |
Computer software engineers | 28 | 1.2 | 24.7 |
Computer support specialists | 19 | 0.8 | 6.8 |
Computer systems analysts | 33 | 1.4 | 15.5 |
Actuaries | 11 | 0.5 | 5.4 |
Market research analysts | 12 | 0.5 | 6.5 |
Lawyers | 12 | 0.5 | 5.6 |
Title examiners, abstractors, and searchers | 23 | 1.0 | -5.5 |
Registered nurses | 25 | 1.1 | 6.2 |
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Sales and related occupations | 367 | 15.8 | 14.4 |
First-line supervisors/managers of non-retail sales workers | 18 | 0.8 | 3.8 |
Insurance sales agents | 313 | 13.5 | 15.7 |
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Office and administrative support occupations | 1,009 | 43.6 | 4.0 |
First-line supervisors/managers of office and administrative support workers | 62 | 2.7 | -6.0 |
Billing and posting clerks and machine operators | 18 | 0.8 | -2.5 |
Bookkeeping, accounting, and auditing clerks | 47 | 2.0 | 8.9 |
Customer service representatives | 266 | 11.5 | 19.2 |
File clerks | 15 | 0.7 | -45.3 |
Receptionists and information clerks | 24 | 1.0 | 10.0 |
Executive secretaries and administrative assistants | 57 | 2.4 | 8.2 |
Secretaries, except legal, medical, and executive | 62 | 2.7 | -1.5 |
Data entry keyers | 22 | 0.9 | -13.5 |
Insurance claims and policy processing clerks | 222 | 9.6 | -2.6 |
Mail clerks and mail machine operators, except postal service | 14 | 0.6 | -21.0 |
Office clerks, general | 106 | 4.6 | 7.8 |
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| Note: Columns may not add to totals due to omission of occupations with small employment
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