According to IRDA (Insurance Regulatory and Development Authority), India’s insurance industry consist 52 companies. About, 3.96% of GDP is paid by Indian insurer as premium in 2012-13. Last decade witnessed an accelerated growth in insurance sector. This actually happened after opening the door for FDI in insurance sector in 2000. In the starting, 26 % of FDI was allowed, It increases to 49% in 2014. This clearly shows the government analysis toward insurance sector to play an important role to accelerate the economy through this sector. Apart from LIC, that is the sole public sector company, 24 life insurance company in India and 28 non-life insurance companies are existing.
Huge potential resisting with insurance sector that help the economy to expand and increase scope for finance professionals and produce more job for value addition to national income. This gives twin benefits to the country. first is to increase GDP through generating income and other is protecting assets of the country. Since, the world financial fluctuations do affects the peoples and the economy too. The risk protection measure make country to boost confidence and expectation in the markets. The new financial exclusion inclusion policy of new government sparks in whole country. The Jan Dhan yojana of including every person of the country through bank account is a great steps of the government policy, just taking back the step of ‘trickle down’ policy to direct emphasises on the general public. Free insurance of Rs 1 lakh secure the large section of society. This really cover the risk of wider range of risk of population.
Employment opportunities in Insurance Sector
According to the NSDC (National Skill Development Cooperation), insurance sector and banking sector growth estimated increase of 2 millions more jobs by 2021. Reports of CII (Confederation of Indian Industries) and ASSOCHAM also signalled significant job creation in coming decade across whole nation. In this sector, many jobs created in marketing executive, generally are insurance agents. The wrong perception exist about their career in this sector because agents generally have begging or forcing approach to sell their policy. This makes public to neglect for choosing the insurance sector. The entry of new firms and increasing FDI in this sector changed the behaviour to approach toward customers.
After Graduation and with specialised diploma in insurance domain helps them in entering the insurance sector. Diplomas as claims, health insurance, motor insurance, bancassurance, reinsurance, underwriting, liability insurance, marine insurance, agriculture insurance, marine insurance, engineering insurance and aviation insurance has huge scope in insurance sector. Concerning to management and technical expectation aspects, insurance deals with risk evaluation, medical science and accountancy etc. The fundamental structure is uncommon and hard needed much efforts to understand.
Education institution analysis the need to design new specialised courses for this sector. Tilak Maharashtra Vidyapeeth (TMV), pune introduced new specialised courses. TMV also offers PG Diploma in insurance, underwriting, claim, health insurance and bancassurance with duration of 1 year. And for undergraduate level, diploma in insurance, banking and financial services are available.
Salary in Insurance Sector
Salary in insurance sector differ according to the experience. In the entrance level, the salary is same as offered in the other financial services. It is keeps on increasing with year of experience. Following table shows the salary according to experience.
|0-1 year||Rs. 1.2 lakh to Rs. 1.5 lakh|
|3-4 year||Rs. 3 lakh to Rs. 4 lakh|
|6-8 year||Rs. 7 lakh to Rs. 10 lakh|
|12- 15 year||Rs. 15 lakh to Rs 20 lakh|
Salary in insurance sector also depends on designation. Their average salary according to Designation is given below.
|Manager in Operation||Rs. 5.5 lakh|
|Manager in Sales and Marketing||Rs. 4 lakh|
|Area Sales Manager||Rs. 6.5 lakh|
|Actuarial Analyst||Rs. 4 lakh|
|Branch Manager||Rs. 7 lakh|
|Training Manager||Rs. 4.7 lakh|
|Business Development Manager||Rs. 4.5 lakh|
With the accelerated growth rate in services, Banking and non banking financial sector also shows rapid growth. Insurance sector is also trending upward growth, It convert it into huge employment generation in this sector. Growth of insurance sector have twin benefits, first is income generation and risk protection for valuable assets. This encourage the government to increase the FDI limit that bring competition and efficiency in the insurance sector. This increases the employment opportunities for this sector. Education institutes also analysing need for design courses for insurance sector. Many institutes started offering new graduate and PG diploma course in many specialized domains of insurance.