Five Surprising Degrees to Consider If You Want to Work in the Insurance Business

If you want to work in the insurance business, you should consider earning a degree that will enrich your experiences and skills. You may not necessarily need a degree to work in all positions at an insurance company, but a degree will likely set you apart from other candidates during the recruitment process as well as provide you with valuable knowledge that you will need to thrive in your post. People who are drawn to the insurance industry sometimes wonder about what kind of education would be needed to work at an insurance company. The five degrees listed below will teach you the right skills to prepare you for a long and successful career in insurance in the 21st century.  

1. Economics 

Many positions at an insurance company entail assessing risks to make smart business decisions. Claims adjusters, estimators, underwriters, and risk consultants that work for an insurance company must be able to accurately assess risk, offer reasoning, and provide solutions in any given situation. By studying economics, you will take courses that will develop your ability to understand human behavior, incentives, and risk scenarios. Additionally, you will learn to create mathematical models and, if you are lucky, take an econometrics class. Some of the courses that you will take include public finance, money and banking, investments, and statistics. Depending on your institution’s program, you may be able to earn a bachelor’s degree in economics while focussing on certain specialty areas, such as risk management, personal financial planning, or insurance. The average price of tuition for earning a bachelor’s degree at an in-state public institution is $7,427 a year.    

2. Finance 

If you’re thinking about becoming a broker or underwriter for an insurance provider, you will benefit greatly from earning a bachelor’s degree in finance. In the insurance industry, there is a term called the “float.” In essence, the float is the money that insurance providers get to hold onto after policyholders pay premiums and make claims. Many insurance companies are increasingly choosing to book underwriting losses and then make them up by intelligently investing the float. When you study finance, you will take the necessary courses to prepare you to make important decisions, like this one, for your employer. A bachelor’s degree in finance will enroll you in courses about accounting, financial analysis, and business law. While you technically only need a broker’s license to become a broker, having a degree in finance may help get you to a portfolio management position at an insurance company one day, where you will make important decisions about investments, risk management, and more.  

3. Computer Science/Design

Insurance companies need to hire more than risk consultants, brokers, and underwriters. In order to keep up with consumers’ demands for advanced technology, quick claims processes, and useful mobile apps, insurance companies must also hire computer engineers, software developers, app designers, coders, and more. Next-generation insurance companies are those that are fulfilling these consumer needs and setting themselves apart from traditional insurance providers. One of the next-generation insurance companies, Lemonade, has gotten great reviews and a lot of praise from the investment community because their service is very software-centric. Lemonade claims to make heavy use of artificial intelligence and easy consumer applications to save cost and manage risk. If you receive a degree in computer science or computer design, you will have the ability to work with these next-generation insurance providers and turn consumer needs into reality. Not only will you help develop mobile apps and websites, you will also play a key role in troubleshooting technological issues and creating a better, user-friendly experience for policyholders.

4. Marketing

Insurance companies spend a ton of money on marketing alone—just think of all of the GEICO commercials that you see throughout the day. In fact, State Farm and Progressive spent more than $1 billion on ads in 2019. The people behind these advertisements are typically the marketing executives of an insurance company. Insurance products are a need, which means that almost everybody needs to consider which insurance provider to choose at one point or another. Because of this, competition in the insurance industry is fierce, and good marketing campaigns could be the determining factor in whether a customer chooses your company, or your competitor. If you are interested in working behind the scenes of a marketing campaign of an insurance company, you should consider earning a bachelor’s degree in marketing. Getting a marketing degree will help you understand multiple aspects of marketing, including advertising, public relations, community management, social media tactics, sales, analytics, business law, consumer behavior, and more. 

5. Communications 

For a lot of people, insurance can be a tricky and confusing topic. This is why it’s important for insurance companies to hire people who communicate well with customers and the public. Earning a bachelor’s degree in communications will help you develop the skills that are required for a communications professional at an insurance company, including writing, public speaking, sales, and customer service. Client service is one of the most important aspects of an insurance company. Even a few reports of poor customer service can turn a potential customer away from choosing your insurance company. A good customer service representative or manager knows how to communicate properly with a potential or current policyholder by answering questions, providing support, and explaining products. This position also works to improve customer service processes, such as phone calls. With a communications degree, you can also take the route of a talent recruiter for an insurance company. In fact, the insurance industry is in desperate need of improving its recruitment process to hire, retain, and engage a younger generation of insurance professionals.

Final Thoughts

Are you interested in working in the insurance business? If so, earning a degree before you start working will help set you up for success. With a bachelor’s degree in economics, finance, computer science, marketing, or communications, you will gain proper skills that will help you succeed in a career at an insurance company. Not only will you take the right courses, but you will also develop professional skills, such as time management, writing, and public speaking. Whether you plan on working as an insurance broker, a customer service agent, or as a marketing executive at an insurance company, having a bachelor’s degree will take your career to the next level. Before deciding which degree to pursue, consider your career goals, as well as what kind of education you need to receive to achieve those goals. If you aim to work as an insurance broker, a degree in economics or finance will best suit your needs. On the other hand, if you want to work behind the scenes, a degree in marketing, computer science and design, or communications will prepare you well.    

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