Ensure a place in insurance

The entry of several private players in the insurance sector has generated more jobs as well as created a greater demand for specialised courses to train manpower in this field, write Manish Kumar Singal & Nalini Ranjan

WITH the liberalisation of the Indian economy, one field that has become wider and more challenging is insurance. Earlier, there was only one insurance company - the Life Insurance Company (LIC) offering life insurance and three general insurance companies providing miscellaneous insurance policies.

Now the scene has changed drastically. There are at least 12 major private insurance companies operating in the market. And due to rapid expansion of this field, about 5 lakh job opportunities have been created in the past five years. These new jobs are mainly in the form of marketing agents or insurance advisers. At present, it is estimated that more than 11 lakh insurance agents or advisers are working for various insurance companies in the Indian market.

There are a number of opportunities in the insurance industry. A person can opt to become an insurance consultant, development officer (DO), assistant administrative officer (AAO) or surveyor. The minimum qualification to get selected for these jobs is graduation with some experience in marketing. Students can become insurance agents after plus two also.

The candidates have to appear for an entrance test conducted by the insurance agencies. After they clear this test are appointed to different posts.

The minimum qualification to become an insurance consultant is plus two. Thereafter, a person's success in this line depends upon his communication skills, his contacts and the quality of service provided to clients.

An AAO can even work his way up to the post of chairman in an insurance company.

According to S. K. Singhal, an insurance consultant practising in Delhi, "To become a surveyor, a person has to be technically qualified. Surveyors are mostly appointed by general insurance companies. They get commission for each survey and their income touches five figures to six figures per month. Candidates with a diploma or degree in any engineering field generally choose this career. One can also do part-time work as a surveyor while doing any other job."

There are mainly four functional areas in the field of insurance -- formulation of insurance policies, management, marketing and advertisement. Almost all institutes offering a course in insurance cover all these areas.

Premium is the most important part while formulating a policy for any insurance company. It should be formulated in such a manner that it is both consumer and company-friendly.

Another important aspect is packaging. It should be so packaged that it delivers the maximum benefits to policy holders.

After the inception of the IRDA, many private insurance companies have jumped in to the partially tapped field of insurance, resulting in better and more competitive policies for customers and throwing up of more challenges for agents. Among the companies that've entered this sector are New York Life, Prudential, Met life, Birla Insurance, Kotak Mahindra, ICICI and HDFC. This has led to stiff competition among them and a preference for trained personnel.

The IRDA has also laid down guidelines for insurance companies to give due attention to potential insurance policy holders. This has opened opportunities in the rural areas too.

After completing a PG diploma in insurance, one can easily become an insurance adviser or agent for any prestigious company.

Agents' earnings are related to achievement of targets set by the company. However, LIC initially provides three-year financial and other support to its agents.

On the basis of performance, one can climb to senior positions like Group Leader (Marketing), Claim Settlement Officer, Area Manager, Regional Manager, Zonal Manager, General Manager, Director (Insurance) and so on.

Pay packages are quite good at the middle and senior levels. At the entry level, the main source of income is the commission.

Merely arming oneself with a degree in insurance is not a guarantee for success in this field. An agent or adviser must possess good communication and networking skills. He should have presence of mind, confidence and the ability to persuade others.

Earlier, there were no formal courses to train insurance agents. Rather, the insurance companies gave on-the-job training to newly appointed agents. But with the coming of several multinational insurance companies to India, the emphasis is on recruiting people who've had some formal training that can be helpful in the insurance field.

To meet the demand of the insurance industry, a few institutes have come up with a number of related courses. To name a few - postgraduate diploma in management and marketing of insurance, MBA in insurance etc. The College of Vocational Studied under the aegis of Delhi University offers insurance as a subject in its B.Sc. course. Admission is given on the basis of the marks obtained in plus two. Some institutes also offer short-term courses in insurance. Some authorised institutions under the Insurance Regulatory and Development Authority (IRDA) also offer PG diploma in insurance. A bachelor's degree and at least two years' field experience in insurance is essential to get admission to these courses.

Apart from this, the IRDA also offers a 100-hour insurance agent course for aspiring candidates. In most of the cases, insurance companies sponsor the course for their agents. The minimum qualification for this is also plus two.