Insurance is a form of risk management primarily used to hedge (investment taken to reduce or cancel risk) against the risk of a contingent loss. Insurance is thus defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Insurance is thus a financial agreement that binds two people or entities to certain obligations which is known as Insurance Policy. One who buys insurance (gets insurance coverage is the policy holder or insured) and the one who sells the policy is the insurer. From the time the insured signs the policy he/she has an obligation to pay a certain amount of money known as premium at regular intervals for a stipulated period to the insurer. In fact, insurance is a contract to pay a premium in return for which the insurer will pay compensation in certain eventualities e.g. fire, theft, motor accident, etc.
The Privatization of the Insurance in India has led to many players like max life insurance, Reliance money, kotak life insurance etc; jumping into the fray which was hitherto fore domain of LIC, Oriental Insurance or the Assurance India ltd. This has led to generation of thousands of jobs and career opportunities.
Eligibility: To pursue a career in the insurance industry, one has to pass the entrance examination conducted by the Actuarial Society of India.
Job Prospectus and Career Options: Each department of the insurance industry has their own set of responsibilities and performs various tasks. The career path begins as an insurance agent who advices individuals and enterprises about insurance products. The agents have a good chance of becoming an employee of the company. This industry also provides great opportunities in marketing, distribution, actuarial, underwriting operations and investing departments.