Goods and services. The insurance industry provides protection against financial losses resulting from a variety of hazards. By purchasing insurance policies, individuals and businesses can receive reimbursement for losses due to car accidents, theft of property, and fire and storm damage; medical expenses; and loss of income due to disability or death.
Industry organization. The insurance industry consists mainly of insurance carriers and insurance agencies and brokerages. In general, insurance carriers are large companies that provide insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers. While some of agencies and brokerages are directly affiliated with a particular carrier and sell only that carrier's policies, many are independent and are thus free to market the policies of a variety of insurance carriers.
In addition to these two primary components, the insurance industry includes establishments that provide other insurance-related services, such as claims adjustment or third-party administration of insurance and pension funds. These other insurance industry establishments also include a number of independent organizations that provide a wide array of insurance-related services to carriers and their clients. One such service is the processing of claims forms for medical practitioners. Other services include loss prevention and risk management. Also, insurance companies sometimes hire independent claims adjusters to investigate accidents and claims for property damage and to assign a dollar estimate to the claim.
Insurance carriers assume the risk associated with annuities and insurance policies and assign premiums to be paid for the policies. In the policy, the carrier states the length and conditions of the agreement, exactly which losses it will provide compensation for, and how much will be awarded. The premium charged for the policy is based primarily on the amount to be awarded in case of loss and the likelihood that the insurance carrier will actually have to pay. In order to be able to compensate policyholders for their losses, insurance companies invest the money they receive in premiums, building up a portfolio of financial assets and income-producing real estate which can then be used to pay off any future claims that may be brought. There are two basic types of insurance carriers: primary and reinsurance. Primary carriers are responsible for the initial underwriting of insurance policies and annuities, while reinsurance carriers assume all or part of the risk associated with the existing insurance policies originally underwritten by other insurance carriers.
Primary insurance carriers offer a variety of insurance policies. Life insurance provides financial protection to beneficiaries—usually spouses and dependent children—upon the death of the insured. Disability insurance supplies a preset income to an insured person who is unable to work due to injury or illness, and health insurance pays the expenses resulting from accidents and illness. An annuity (a contract or a group of contracts that furnishes a periodic income at regular intervals for a specified period) provides a steady income during retirement for the remainder of one's life. Property-casualty insurance protects against loss or damage to property resulting from hazards such as fire, theft, and natural disasters. Liability insurance protects policyholders from financial responsibility for injuries to others or for damage to other people's property. Most policies, such as automobile and homeowner's insurance, combine both property-casualty and liability coverage. Companies that underwrite this kind of insurance are called property-casualty carriers.
Some insurance policies cover groups of people, ranging from a few to thousands of individuals. These policies usually are issued to employers for the benefit of their employees or to unions, professional associations, or other membership organizations for the benefit of their members. Among the most common policies of this nature are group life and health plans. Insurance carriers also underwrite a variety of specialized types of insurance, such as real-estate title insurance, employee surety and fidelity bonding, and medical malpractice insurance.
Other organizations in the industry are formed by groups of insurance companies, to perform functions that would result in a duplication of effort if each company carried them out individually. For example, service organizations are supported by insurance companies to provide loss statistics, which the companies use to set their rates.
Recent developments. The recent financial crisis has resulted in large losses for the insurance industry. Industry conditions in the near term remain tenuous, particularly as many companies will continue to experience declining revenues, investment losses, and credit rating downgrades, which can affect an insurer’s ability to repay debt by having to pay a higher interest rate. Additionally, insurance companies who were trading in credit default swaps and other risky instruments without sufficient hedging suffered especially hard, and some companies even became insolvent. Companies with prudent risk management strategies also suffered large losses, because most investment instruments owned by insurance companies experienced falling values as they were being sold or marked down as the stock market deteriorated in late 2008. Nonetheless, as insurers rebuild capital and adhere to stricter Federal regulations, the insurance industry is likely to stabilize.
Insurance carriers now sell products traditionally associated with other financial institutions, such as banks and securities firms. These products include securities, mutual funds, and various retirement plans. The Internet is an important tool for insurance carriers in reaching potential and existing customers. Carriers use the Internet to enable customers to access online account and billing information, submit claims, view insurance quotes, and purchase policies. In addition to individual carrier-sponsored Internet sites, several "lead-generating" sites have emerged. These sites allow potential customers to input information about their insurance policy needs. For a fee, the sites forward customer information to a number of insurance companies, which review the information and, if they decide to take on the policy, contact the customer with an offer. This practice gives consumers the freedom to accept the best rate.
Hours. Many workers in the insurance industry—especially those in administrative support positions—work a 5-day, 40-hour week. Those in executive and managerial occupations often put in more than 40 hours. There are several occupations in the insurance industry where workers may work irregular hours outside of office settings. Those working in sales jobs need to be available for their clients at all times. This accommodation may result in these individuals working 50 to 60 hours per week. Also, call centers operate 24 hours a day, 7 days a week, so some of their employees must work evening and weekend shifts. The irregular business hours in the insurance industry provide some workers with the opportunity for part-time work. Part-time employees make up 8 percent of the workforce.
Work environment. Insurance employees working in sales jobs often visit prospective and existing customers' homes and places of business to market new products and provide services. Others working in the industry may need to frequently leave the office to inspect damaged property, and at times can be away from home for days, traveling to the scene of a disaster—such as a tornado, flood, or hurricane—to work with affected policyholders and various government officials.
A small, but increasing, number of insurance employees spend most of their time on the telephone working in call centers, answering questions and providing information to prospective clients or current policyholders. These jobs may include selling insurance, taking claims information, or answering medical questions.
The insurance industry had about 2.3 million wage and salary jobs in 2008. Insurance carriers accounted for 61 percent of jobs, while insurance agencies, brokerages, and providers of other insurance-related services accounted for 39 percent of jobs.
The majority of establishments in the insurance industry were small; however, a few large establishments accounted for many of the jobs in this industry. Insurance carriers tend to be large establishments, often employing 250 or more workers, whereas agencies and brokerages tend to be much smaller, frequently employing fewer than 20 workers.
Many insurance carriers' home and regional offices are situated near large urban centers. Insurance workers who deal directly with the public are located throughout the country. Almost all of those working in sales work out of local company offices or independent agencies. Many others in the industry work for independent firms in small cities and towns throughout the country.
About 42 percent of insurance workers are in office and administrative support jobs such as those found in every industry (table 1). Many office and administrative support positions in the insurance industry, however, require skills and knowledge unique to the industry. About 29 percent of insurance workers are in management or business and financial operations occupations. About 17 percent of wage and salary employees in the industry are sales and related workers, selling policies to individuals and businesses. About 11 percent are in professional and related occupations, including many computer and mathematical science occupations.
Office and administrative support occupations. Office and administrative support occupations in this industry include secretaries, typists, word processors, bookkeepers, and other clerical workers. Secretaries and administrative assistants perform routine clerical and administrative functions such as drafting correspondence, scheduling appointments, organizing and maintaining paper and electronic files, or providing information to callers. Bookkeeping, accounting, and auditing clerks handle all financial transactions and recordkeeping for an insurance company. They compute, classify, update, and record numerical data to keep financial records complete and accurate. Insurance claims and policy processing clerks process new policies, modifications to existing policies, and claims forms. They review applications for completeness, compile data on policy changes, and verify the accuracy of insurance company records. Customer service representatives have duties similar to insurance claims and policy processing clerks, except they work directly with customers by processing insurance policy applications, changes, and cancellations over the phone. They may also process claims and sell new policies to existing clients. These workers recently are taking on increased responsibilities in insurance offices, such as handling most of the continuing contact with clients. A growing number of customer service representatives work in call centers that are open 24 hours a day, 7 days a week, where they answer clients' questions, update policy information, and provide potential clients with information regarding the types of policies the company issues.
Management, business, and financial operations occupations. Top executives direct the operations of an independent insurance agency, brokerage, or a large insurance carrier. Marketing managers direct carriers' development of new types of policies that might appeal to the public and strategies for selling them to customers. Sales managers direct the activities of the sales workers in local sales offices of insurance carriers and independent agencies. They sell insurance products, work with clients, and supervise staff. Other managers who work in their companies' home offices are in charge of functions such as actuarial calculations, policy issuance, accounting, and investments.
Claims adjusters, appraisers, examiners, and investigators decide whether claims are covered by the customer's policy, estimate and confirm payment, and, when necessary, investigate the circumstances surrounding a claim. Claims adjusters work for property and liability insurance carriers or for independent adjusting firms. They inspect property damage, estimate how much it will cost to repair, and determine the extent of the insurance company's liability; in some cases, they may help the claimant receive assistance quickly in order to prevent further damage and begin repairs. Adjusters plan and schedule the work required to process claims, which may include interviewing the claimant and witnesses and consulting police and hospital records. In some property-casualty companies, claims adjusters are called claims examiners, but in other companies, a claims examiner's primary job is to review claims to ensure that proper guidelines have been followed. Only occasionally—especially when disasters suddenly increase the volume of claims—do these examiners aid adjusters with complicated claims.
In the offices of life and health insurance carriers, claims examiners are the counterparts of the claims adjuster who works in a property and casualty insurance firm. Examiners in the health insurance carriers review health-related claims to see whether the costs are reasonable based on the diagnosis. Examiners check claim applications for completeness and accuracy, interview medical specialists, and consult policy files to verify information on a claim. Claims examiners in the life insurance carriers review causes of death and also may review new applications for life insurance to make sure that the applicants have no serious illnesses that would prevent them from qualifying for insurance.
Insurance investigators handle claims in which companies suspect fraudulent or criminal activity, such as suspicious fires, questionable workers' disability claims, difficult-to-explain accidents, and dubious medical treatment. Investigators usually perform database searches on suspects to determine whether they have a history of attempted or successful insurance fraud. Then, the investigators may visit claimants and witnesses to obtain a recorded statement, take photographs, inspect facilities, and conduct surveillance on suspects. Investigators often consult with legal counsel and are sometimes called to testify as expert witnesses in court cases.
Auto damage appraisers usually are hired by insurance companies and independent adjusting firms to inspect the damage to a motor vehicle after an accident and to provide unbiased estimates of repair cost. Claims adjusters and auto damage appraisers can work for insurance companies, or they can be independent or public adjusters. Insurance companies hire independent adjusters to represent their interests while assisting the insured, whereas public adjusters are hired to represent the insured's interests against insurance carriers.
Management analysts, often called loss control representatives in the insurance industry, assess various risks faced by insurance companies. These workers inspect the business operations of insurance applicants, analyze historical data regarding workplace injuries and automobile accidents, and assess the potential for natural hazards, dangerous business practices, and unsafe workplace conditions that may result in injuries or catastrophic physical and financial loss. They might then recommend, for example, that a factory add safety equipment, that a house be reinforced to withstand environmental catastrophes, or that incentives be implemented to encourage automobile owners to install air bags in their cars or take more effective measures to prevent theft. Because the changes they recommend can greatly reduce the probability of loss, loss control representatives are increasingly important to both insurance companies and the insured.
Underwriting is another important management and business and financial occupation in insurance. Underwriters evaluate insurance applications to determine the risk involved in issuing a policy. They decide whether to accept or reject an application, and they determine the appropriate premium for each policy.
Sales and related occupations. Insurance sales agents, also referred to as producers, may work as exclusive agents, or captive agents, selling for one company, or as independent agents selling for several companies. Through regular contact with clients, agents are able to update coverage, assist with claims, ensure customer satisfaction, and obtain referrals. Insurance sales agents may sell many types of insurance, including life, annuities, property-casualty, health, and disability insurance. Many insurance sales agents are involved in "cross-selling" or "total account development," which means that, besides offering insurance, they have become licensed to sell mutual funds, annuities, and other securities. These agents usually find their own customers and ensure that the policies sold meet the specific needs of their policyholders.
Professional and related occupations. The insurance industry employs relatively few people in professional and related occupations, but they are essential to company operations. For example, insurance companies' lawyers defend clients who are sued, especially when large claims may be involved. These lawyers also review regulations and policy contracts. Nurses and other medical professionals advise clients on wellness issues and on medical procedures covered by the company's managed-care plan. Computer systems analysts, computer software engineers and computer programmers, and computer support specialists are needed to analyze, design, develop, and program the systems that support the day-to-day operations of the insurance company.
Actuaries represent a relatively small proportion of employment in the insurance industry, but they are vital to the industry's profitability. Actuaries study the probability of an insured loss and determine premium rates. They must set the rates so that there is a high probability that premiums paid by customers will cover claims, but not so high that their company loses business to competitors.
|Occupation||Employment, 2008||Percent Change,
|Management, business, and financial occupations||672.2||29.1||1.4|
|General and operations managers||40.4||1.8||-6.9|
|Claims adjusters, examiners, and investigators||212.8||9.2||3.6|
|Accountants and auditors||40.0||1.7||3.0|
|Professional and related occupations||263.0||11.4||4.8|
|Computer systems analysts||36.1||1.6||11.1|
|Sales and related occupations||381.5||16.5||11.7|
|Supervisors, sales workers||17.5||0.8||1.4|
|Insurance sales agents||321.6||13.9||14.1|
|Office and administrative support occupations||973.7||42.2||0.2|
|Bookkeeping, accounting, and auditing clerks||43.1||1.9||2.2|
|Customer service representatives||271.3||11.8||8.4|
|Secretaries and administrative assistants||123.1||5.3||-1.1|
|Insurance claims and policy processing clerks||223.9||9.7||-1.7|
|Office clerks, general||95.4||4.1||3.2|
|NOTE: Columns may not add to totals due to omission of occupations with small employment.|
A few jobs in the insurance industry, especially in office and administrative support occupations, require no more than a high school diploma. However, employers prefer to hire workers with a college education for most jobs, including most managerial and professional jobs. When specialized training is required, it usually is obtained on the job or through independent study during work or after-work hours. Many insurance companies expect their employees to take continuing education courses to improve their people skills and their knowledge of the industry. Opportunities for advancement are relatively good in the insurance industry.
Office and administrative support occupations. Graduation from high school or a 2-year postsecondary business program is adequate preparation for most entry-level office and administrative support jobs. Courses in business math are assets, and the ability to operate computers is essential. On-the-job training usually is provided for most customer service representatives. Because representatives in call centers must be knowledgeable about insurance products in order to provide advice to clients, more States are requiring customer service representatives to become licensed. Several years of experience and training can help beginners advance to higher paying positions. Office and administrative support workers may also advance to higher paying claims adjusting positions and entry-level underwriting jobs.
Management, business, and financial operations occupations. Management, business, and financial jobs require the same college training as similar jobs in other industries. Managerial positions usually are filled by promoting college-educated employees from within the company. However, some companies prefer to hire new college graduates at a lower cost, and many insurers send them to company schools or enroll them in outside institutes for professional training. A master's degree, particularly in business administration or a related field, is an asset for advancement into higher levels of management.
For beginning underwriting jobs, many insurance companies prefer college graduates who have a degree in business administration or a related field. As an underwriter's career develops, it becomes beneficial to earn one of the voluntary professional certifications in underwriting. For example, the Insurance Institute of America offers a training program for beginning underwriters. The Institute also offers the designation of Associate in Commercial Underwriting (ACU) for those starting a career in underwriting business insurance policies, or an Associate in Personal Insurance (API) for those interested in underwriting personal insurance policies. To earn either the ACU or API designation, underwriters complete a series of courses and examinations that generally last 1 to 2 years.
The American Institute for Chartered Property Casualty Underwriters awards the Chartered Property and Casualty Underwriter (CPCU) designation to experienced underwriters. Earning the CPCU designation requires passing eight exams, having at least 2 years of insurance experience, and abiding by the Institute's and CPCU Society's code of professional ethics.
The American College offers the equivalent Chartered Life Underwriter (CLU) designation and the Registered Health Underwriter (RHU) designation for life and health insurance professionals. For those new to the industry, the American College also offers the Life Underwriter Training Council Fellow (LUTCF), an introductory course that teaches basic insurance concepts.
In almost every State, those working as a claims examiner or adjuster must obtain a license. Licensing requirements for these workers vary by State and can include prelicensing education or passing a licensing exam. In some cases, professional designations may be substituted for the exam requirement. Separate or additional requirements may apply to public adjusters. For example, some States may require public adjusters to file a surety bond. Often, claims adjusters working for companies can work under the company license and not need to become licensed themselves. Most companies prefer to hire college graduates and those with previous experience or who have obtained licensure for claims adjuster and examiner positions. No specific college major is required, although most workers in these positions have a business, accounting, engineering, legal, or medical background. In addition, many adjusters and examiners choose to pursue certain certifications and designations to distinguish themselves. Many State licenses and professional designations require continuing education for renewal. Continuing education is important because adjusters and examiners must be knowledgeable about changes in the laws, recent court decisions, and new medical procedures.
While auto damage appraisers are not required to have a college education, most companies prefer to hire persons with formal training, previous experience, or those with knowledge and technical skills who can identify and estimate the cost of repair. Many vocational colleges offer 2-year programs in auto body repair and teach students how to estimate the costs to repair damaged vehicles.
Licensing requirements to become an insurance investigator may vary among States. Most insurance companies prefer to hire former law enforcement detectives or private investigators as insurance investigators. Many experienced claims adjusters or examiners also can become investigators. Most employers look for individuals with ingenuity and who are persistent and assertive. Investigators must not be afraid of confrontation, should communicate well, and should be able to think on their feet. Good interviewing and interrogation skills also are important and usually are developed in earlier careers in law enforcement.
Sales and related occupations. Although some employers hire high school graduates with potential or proven sales ability for entry-level sales positions, many prefer to hire college graduates—especially those who have majored in business, finance, or economics.
All insurance sales agents must obtain licenses in the States in which they plan to sell insurance. Separate licenses are required for agents to sell life and health insurance and property and casualty insurance. In most States, licenses are issued only to applicants who complete specified courses and pass written examinations covering insurance fundamentals and State insurance laws. New agents receive training from their employer, either at work or at the insurance company's home office. Sometimes, entry-level employees attend company-sponsored classes to prepare for examinations. The National Alliance for Insurance Education and Research offers a wide variety of courses in health, life, and property and casualty insurance for independent insurance agents. Others study on their own and, as on-the-job training, accompany experienced agents when they meet with prospective clients. After obtaining a license, agents must earn continuing education credits throughout their careers in order to remain licensed insurance sales agents.
Insurance sales agents wishing to sell securities and other financial products must meet State licensing requirements in these areas. Specifically, they must pass an additional examination—either the Series 6 or Series 7 licensing exam, both of which are administered by the Financial Industry Regulatory Authority (FINRA). The Series 6 exam is for individuals who wish to sell only mutual funds and variable annuities; the Series 7 exam is the main FINRA series license and qualifies agents as general securities representatives. To demonstrate further competency in financial planning, many agents also find it worthwhile to obtain a certified financial planner (CFP) or chartered financial consultant (ChFC) designation.
Sales workers may advance by handling greater numbers of accounts and more complex commercial insurance policies. They may also choose to start an independent insurance agency. Many also obtain related designations such as the CPCU underwriting designation, offered by the AICPCU.
Professional and related occupations. For actuarial jobs, companies prefer candidates to have degrees in actuarial science, mathematics, or statistics, or a business-related field such as finance, economics, or business. Actuaries must pass a series of national examinations to attain full professional status—a process that often takes 5 to 10 years to complete. Two professional societies sponsor programs leading to full professional status in their specialty: the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). The SOA certifies actuaries in the fields of life insurance, health benefits systems, retirement systems, and finance and investment. The CAS gives a series of examinations in the property and casualty field, which includes automobile, homeowners, medical malpractice, workers compensation, and personal injury liability.
Four of the first seven exams in the SOA and CAS examination series are jointly sponsored by the two societies and cover the same material. For this reason, students do not need to commit themselves to a specialty until they have taken the initial examination, which tests an individual's competence in mathematics and helps evaluate their potential as actuaries. If candidates pass the initial exam, prospects can begin taking the next series of exams with the help of self-study guides and courses. Those who pass two or more examinations have better opportunities for employment at higher starting salaries than those who do not. These initial exams can be taken while the candidate is still in college, but most require extensive home study. Many companies grant study time to their actuarial students to prepare for the exams.
Demand for insurance will increase, but employment in the insurance industry will increase more slowly than employment growth across all industries.
Employment change. Wage and salary employment in the insurance industry is projected to grow about 3 percent between 2008 and 2018, compared to the 11 percent growth projected for wage and salary employment in all industries combined. While demand for insurance is expected to rise, job growth will be limited by industry consolidation, corporate downsizing, productivity increases due to new technology, and increasing use of direct mail, telephone, and Internet sales. Additionally, the recent financial crisis has resulted in large losses for the insurance industry, phenomena that will result in more prudent risk management and lower revenues. However, insurers should rebuild their capital and continue to expand into the broader financial services field, resulting in some job growth.
Significant growth is expected over the long term, even though increasing health insurance premiums have recently become difficult for some people to afford. As the members of the baby boom generation grow older and a growing share of the Nation's population moves into the older age groups, more people are expected to buy health insurance and long-term-care insurance, as well as annuities and other types of pension products sold by insurance sales agents. If reforms are enacted that makes health insurance affordable to more people, the number of people covered by some form of health insurance will likely be affected.
Population growth also will stimulate demand for auto insurance and homeowners insurance. Also, population growth will create additional demand for businesses to service the needs of more people, and these businesses will need insurance as well. In addition, growing numbers of individuals and businesses are purchasing liability policies to protect against possible large awards from lawsuits brought by people claiming injury or damage from a product.
Many successful insurance companies will recognize the Internet's potential as a powerful marketing tool, increasing employment growth of some occupations while slowing growth of others. Growing use of the Internet might reduce costs for insurance companies, but it also could enable many clients to turn first to the Internet to get information on their policies, obtain price quotes on possible new policies, or submit claims. As insurance companies begin to offer more information and services on the Internet, employment in some occupations, such as insurance sales agents, could be adversely affected.
Productivity gains caused by the greater use of computer software will continue to limit the growth of certain jobs within the insurance industry. For example, upgrades to underwriting software have helped increase underwriter productivity. Automated underwriting quickly rates and analyzes insurance applications, reducing the need for underwriters. In addition, adoption of this technology into other segments of insurance, such as life and health and long-term care, will result in declining employment of underwriters. Workers in claims now may not have to visit the site of customers' damage; they may use satellite imagery to inspect the damage from their computers. In addition, the Internet allows insurance investigators to handle an increasing number of cases by drastically reducing the amount of time it takes them to perform background checks, limiting the additional investigators that must be hired to handle a growing workload. Also, computers have made communications easier among sales agents, adjusters, and insurance carriers—making all much more productive—by linking them directly to the databases of insurance carriers and other organizations. Furthermore, insurance carriers contain costs by increasing using customer service representatives to deal with the day-to-day processing of policies and claims.
Job prospects. Workers in property and casualty insurance, particularly in auto insurance, will be most affected by increasing reliance on the Internet. Auto policies are relatively straightforward and can be issued more easily without the involvement of a live agent. Also, auto premiums tend to cost more per year than do other types of policies, so people are more likely to shop around for the best price—and the Internet makes it easier to compare rates among companies.
Insurance companies will continue to face increased competition from banks and securities firms entering the insurance markets. As more of these firms begin to sell insurance policies, they will employ increasing numbers of insurance sales agents. In order to stay competitive, more insurance companies are expanding the range of financial products and services they offer, or are establishing partnerships with banks or brokerage firms.
Although employment in the insurance industry is expected to grow slowly, thousands of openings are expected to arise reflecting the need to replace workers who leave the industry, retire, or stop working for other reasons. Despite the fact that the internet allows many people to buy policies online, many sales agents still will be needed to meet face-to-face with clients; some customers prefer to talk directly with an agent, especially regarding complicated policies. Opportunities will be best for sales agents who sell more than one type of insurance or financial service. Opportunities should be good for adjusters because they will still be needed to inspect damage and interview witnesses as the insurance industry, the Nation's population, and the number of claims all grow. Even though the number of available jobs will be small, opportunities should be good for qualified actuaries because many people are discouraged from following this career path due to the stringent requirements of the examination system.
Industry earnings. Weekly earnings of nonsupervisory workers in the insurance industry averaged $857 in 2008, considerably higher than the average of $608 for all private industry. Wages of the largest occupations in insurance appear in table 2.
|Claims adjusters, examiners, and investigators||26.12||26.81|
|First-line supervisors/managers of office and administrative support workers||25.49||22.02|
|Insurance sales agents||21.89||21.84|
|Executive secretaries and administrative assistants||19.72||19.24|
|Bookkeeping, accounting, and auditing clerks||16.51||15.63|
|Insurance claims and policy processing clerks||15.95||15.91|
|Customer service representatives||15.55||14.36|
|Secretaries, except legal, medical, and executive||13.47||13.96|
|Office clerks, general||12.10||12.17|
The method by which insurance sales agents are paid varies greatly. Most independent sales agents own their own businesses and are paid a commission only. Sales agents who are employees of an agency may be paid a salary only, a salary plus commission, or a salary plus a bonus. An agent's earnings usually increase rapidly with experience. Many agencies also pay an agent's expenses for automobiles and transportation, travel to conventions, and continuing education.
Benefits and union membership. Insurance carriers offer attractive benefits packages, as is frequently the case with large companies. Yearly bonuses, retirement investment plans, insurance, and paid vacation often are standard. Insurance agencies, which generally are smaller, offer less extensive benefits.
Unionization is not widespread in the insurance industry. In 2008, 3 percent of all insurance workers were union members or were covered by union contracts, compared with 14 percent of workers throughout private industry.