The advent of technology changed the nature of the insurance industry, and the pandemic has further converted the way it operates. Both businesses and individuals require protection against financial loss, theft or damage to life or property. Through an insurance policy for which the insured pays a premium, an insurance company guarantees a secure payment for an uncertain future event.
The uncertain nature of the pandemic has further increased this need for a sense of security and assurance. New-age technologies such as Artificial Intelligence (AI), Blockchain, and Internet of Things (IoT) have changed how insurance companies operate, and have opened up several avenues in the sector.
Courses and skillsets
While one can build a rewarding career in Insurance after Class 12, a degree in Finance, Economics, Business, or Maths is beneficial. Courses such as BBA in Banking and Insurance, Insurance and Risk Management, and Insurance Management; B. Com in Banking and Insurance Management, MBA in Banking and Insurance, Insurance Management, Insurance and Risk Management, M. Com in Banking and Insurance Management, as well as diplomas and certificate courses, are available.
Essential skills include numeracy, problem-solving, attention to detail, customer service, and effective analytical and communication skills. Understanding new technologies such as AI and Machine Learning (ML) has become a prerequisite.
Impact of technology
Emerging technology trends such as AI, ML and Blockchain are set to transform the nature of Insurance. For instance, in auto insurance, the risk will shift from drivers to AI and software behind self-driving cars. According to a report by McKinsey, insurers can have unprecedented visibility into the risk around facilities through satellites, drones, and real-time data sets, leading to greater accuracy. Those with an IT background can have a fulfilling career in Insurance Technology (InsurTech) firms or start-ups. Online courses in AI and ML are also available for aspirants from non-IT backgrounds.
Insurance professionals have access to jobs in government and private agencies as well as self-employment opportunities. The first category includes public sector banks and insurance agencies, finance institutes and departments, and other relevant departments. Private banks, finance institutes, insurance firms, credit companies are also possible employers.
InsurTech start-ups are hiring fresh graduates who are up-to-date with technology, in roles such as actuaries, underwriters, and claim adjusters. Other roles include data scientists, sales agents, marketers, customer service representatives and risk managers.
According to IBEF org report, India has around 57 insurance companies, of which 24 are in the life insurance business, while 34 are non-life insurers. The Life Insurance Corporation (LIC) is the sole public sector company among life insurers. There are six public sector insurers in the non-life insurance segment. Other stakeholders in the Indian Insurance market include agents (individual and corporate), brokers, surveyors and third-party administrators servicing health insurance claims.
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