Risk Management and Insurance Career Networking Event

Risk Insurance Career Networking flyer

Please join us Tuesday, February 9, 2016 – 5:30 – 730 p.m.

SPC EpiCenter

13805 58th Street

Clearwater, FL

Click here to get directions.

Careers in Insurance

Demand for insurance agents, underwriters and claim representatives is projected to grow 10 percent through 2022, as fast as the average for all occupations. – Source: Bureau of Labor Statistics

What is Risk Management?
Risk management is a process for identifying, assessing, and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards, including those developed by the Project Management Institute, the International Organization for Standardization (ISO), the National Institute of Science and Technology, and actuarial societies.

Join us at this event to:

  • Learn about careers in the dynamic and growing risk management and insurance profession
  • Network with local insurance carriers
  • Talk to hiring managers
  • Learn about advancement opportunities
  • Learn more about what degrees you can earn to work in the risk management and insurance industry
  • Learn about scholarship opportunities
  • Ask employers questions in an informal environment is

RSVP online or call Bethany Greenley at 727-302-6487 for more information.

Joint Sponsorship between the Florida Association of Insurance Agents (FAIA) and St. Petersburg College

Please RSVP by clicking here

 

3 thoughts on “Risk Management and Insurance Career Networking Event

  1. Over the years I have known several people in the insurance industry and they never seem to have trouble getting jobs. The easiest one is in sales because you kind of come in with a small cost to the company and then prove your worth to the company with your sales statistics.

    1. The turnover rate is rather high in the claims, customer service and sales segments of the insurance industry.

      When working in claims, adjusters & claims CSR’s must have thick skin because the majority of people that you talk to are not happy. They just sustained a loss to one of their most expensive assets (vehicle, business or home). They want payment now, they don’t understand deductibles and the other guy is always at fault for an auto accident. Furthermore, most auto claims adjusters must handle 60-100 claims at one time while staying in an inbound call queue at all times. The call center environment makes the job much more stressful. While there are non-adjuster customer service positions for the claims department, they are mostly there to take first notices of loss. Answering most specific questions about a claim requires an adjuster’s license so the call must be forwarded to the adjuster call queue.

      The sales aspect of Insurance is only profitable if you are the agency principal and the product(s) that you are selling are competitively priced in the geographic area of the agency. As an agent working under an agency principal, the base pay is relatively low and the commission is not great. Some agencies only offer commission only or a draw against commission, similar to car sales.

      Typical base pays are only $3-450 per week and commissions average around 10% of what the agency principal receives. If you sell $75,000 in a month in premium, the agency only receives commission on a portion of that number. There are fees, taxes, catastrophic fund charges added to the policy premium. Furthermore, some home insurance companies only pay commission on the non-wind portion of premiums which in some cases, with the fees, taxes & charges is more than 50% of the premium. Finally, the amount of commission that the agency receives varies from company to company. It is typically in the range of 8-12%.

      So if you are making a $400/week base salary, sell $75,000 in premium and $60,000 of the $75,000 is commissionable; the sales person will receive a $600 commission check for the month. 400/wk + 600/mo (if you can maintain $75000 in premium, which is difficult) = $28,000 per year. At 40 hours per week with no vacations or sick time used, works out to just under 13.50 per hour. Not exactly a comfortable pay rate. Also, agencies that offer a base pay typically do not compensate the sales person when the policy renews and if a policy cancels for any reason, the most common is non-payment, the commission is taken away (charge back).

      In other cases, there is no base pay. It is commission only and you receive a higher portion of the commission paid to the agency. In some cases it is 50% but the sales person must pay for their own leads, pay rent for office space in the agency and pay a portion of advertising. More commonly it is around 25% with leads, rent & advertising included. So if you are selling an average of $75,000 in premium (60,000 commissionable), you are only making $1500 per month (18,000/yr). These arraignments usually involve payment for renewal business as well because you are required to service the policy and do not receive a base pay. The renewal commission is typically lower, around 10%. Over time, you can build a decent book of business but it does take a few years. The renewal rate is only about 75% but can be much lower if the companies you are representing are approved for price increases. So if you maintain 75,000 in sales per month over a 5 year period, accounting for the 75% renewal rate each year you will make $18,000 in year 1. $23,400 in year 2. $27,450 in year 3. $30,500 in year 4. $32,800 in year 5. Each year, your book of business gets bigger but it will require more work to service the policies which leaves you less time to sell new business unless you work more hours and the difference in pay from year 4 to 5 is less than a 1% increase.

      Source: Personal experience; 2 years as a claims customer service rep, 3 years as an auto claims adjuster, 1 year as an auto claims theft/fraud adjuster (SIU investigator) and 4 years as an sales agent working under an agency principal.

      1. Thank you for the feedback. The following is a reply from Cindy Webster, President/CEO of Jack Rice Insurance.

        Hi! I am sorry to hear that you have had negative experiences in the claims and sales segments of the insurance industry. As a 40 year veteran in the insurance agency side of the business I can assure you that this is not the norm.

        Admittedly, the claims segment is not for everyone – me included! That said, the people who do handle claims are very special. They have to have the right mix of knowledge, professionalism and empathy. Those that do, thrive in the claims environment. Successful claims personnel find their work rewarding as they understand that this time is one of the most significant and difficult in the customer’s life and assisting them through it is invaluable.

        With respects to sales, traditionally each insurance agency has their own compensation plan which can vary widely. However, the vast majority are much more lucrative than the one you described. In fact, six figure incomes are considered the norm in the Commercial Lines arena. The reason that the compensation plans have to be more lucrative is that agencies want to not only attract productive sales professionals, but also keep them on their team for the long term. With respect to any service work, sales professionals usually have other agency team members who handle the servicing of their books of business to ensure that their focus is only on sales growth. Indeed, while agency owners also benefit from any growth, the sales professional benefits monetarily first. I can assure you that as an agency owner, I want all my sales professionals to feel that there is no limit or impediment to their income potential.

        But just like claims, sales is not everyone’s forte. So I feel it is important to emphasize that the insurance industry has countless more employment opportunities available than just Claims and Sales which makes it such a worthwhile career path. I would welcome the opportunity to assist you further in your insurance endeavors, so please feel free to reach out to me.

        Cindy Webster
        President/CEO
        cwebster@jackriceinsurance.com

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