Insurance Risk Management Careers
Insurance risk management careers focus on developing strategies and systems that use insurance to safeguard a company against risk. By analyzing and predicting the potential financial losses for insuring individuals and organizations, insurance risk managers help companies calculate insurance premiums. Insurance risk management positions can specialize in a particular type of insurance or division, or rotate to obtain experience in different areas of the insurance business.
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Function
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Insurance risk managers are responsible for devising systems and programs that limit a company's financial losses. By creating insurance policies that comply with accepted safety standards and government legislation, managers put together cost-effective plans that guard companies against various risks. For example, insurance risk management professionals develop programs that outline how firms can protect their assets in a lawsuit. Insurance risk managers also conduct research and create reports that analyze how to protect organizations against financial risks resulting from international trade, politics and civil unrest.
Education
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The U.S. Bureau of Labor Statistics (BLS) reports that most financial management jobs require a bachelor's degree in business administration, economics or finance. Strong analytical, interpersonal communication, business administration and financial skills are also required in a risk management position. Employers increasingly prefer candidates with a master's degree or MBA. It is also common for insurance risk personnel and other financial managers to earn certification to stay current on the changing policies and legislative changes in federal and state laws. For example, financial managers can obtain risk and insurance management (RIMS) certification through the Risk Management Society (see Resources).
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Salary
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The BLS reported that average annual wages for financial managers, which include insurance and risk management jobs, was $113,730 per year as of May 2009. Financial managers employed by insurance carriers reported an average annual wage of $123,970. According to Columbia University, candidates starting out in the risk insurance management field can expect a salary between $35,000-$80,000, as of August 2007.
Potential
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Employment opportunities for financial management positions are expected to grow 8 percent between 2008 and 2018, according to the BLS. Driving this growth will be government legislation, international commerce and increased business transactions. As financial risks from business investments and insurance premiums increase, the employment of risk and insurance managers is also expected to rise. Companies will need insurance risk managers' financial expertise to help them mitigate risk and boost profits.
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References
Resources
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