Future of The Insurance Sector.


Wage and salary employment in the insurance industry is projected to increase 8 percent between 2002 and 2012, more slowly than the 16 percent average for all industries combined. While demand for insurance is expected to rise, downsizing, productivity increases due to new technology, and a trend toward direct mail, telephone, and Internet sales will limit job growth. However, some job growth will result from the industry’s expansion into the broader financial services field, and employment in the medical service and health insurance areas is anticipated to grow. Also, thousands of openings are expected to arise in this large industry to replace workers who leave the industry, retire, or stop working for other reasons.

Medical service and health insurance is the fastest-growing sector of the insurance industry. In recent years, increasing health insurance premiums and relatively high unemployment have left some unable to afford health insurance, but over the long term, significant growth is expected. As the share of the elderly population rises, 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 legislation is passed to make health insurance affordable to more people, demand should increase further for this type of insurance. Population growth will stimulate demand for auto insurance and homeowners insurance. Population growth also will create demand for businesses to service the needs of more people, and these businesses will need insurance as well. Moreover, large liability awards are motivating growing numbers of individuals and businesses to purchase liability policies to protect against 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. Not only might this reduce costs for insurance companies, but it also could enable many clients to turn to the Internet first to get information on their policies, obtain quotes, or submit claims. As insurance companies begin to offer more information and services on the Internet, some occupations, such as insurance sales agent, could experience slower employment growth.

Sales agents working in the property and casualty market, 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. 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, increasing numbers of insurance sales agents will be employed in them, rather than in insurance companies. In order to stay competitive, insurance companies have begun to expand their financial service offerings or to establish partnerships with banks or brokerage firms.

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, the use of underwriting software that automatically analyzes and rates insurance applications will limit the employment growth of underwriters. Also, computers linked directly to the databases of insurance carriers and other organizations have made communications easier among sales agents, adjusters, and insurance carriers, so that all have become much more productive. Furthermore, efforts to contain costs have led to an increasing reliance on customer service representatives to deal with the day-to-day processing of policies and claims. In addition, the Internet has made insurance investigators more productive by drastically reducing the amount of time it takes to perform background checks, allowing investigators to handle an increasing number of cases, but limiting their employment growth.

Sales agents and adjusters still are needed to meet face-to-face with clients, many of whom 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. Adjusters will still be needed to inspect damage and interview witnesses, and although the number of available jobs for actuaries will be limited due to the small size of the occupation, employment opportunities should be good as stringent qualifying requirements resulting from the examination system limit the number of new entrants.






The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
  1. wolqzxt 1 month ago

    my chloroform troche it is in a newsletter cheshire <a href="[Link deleted]health store Smacking the — riff it on

  2. Ijbuyk dsxbwf <a href="[Link deleted]20 mg price walmart cost of cialis

  3. generic cialis 1 month ago

    Vdsggu bpupmr <a href="[Link deleted]viagra cialis cost

  4. cialis india 1 month ago

    Ctignl mjfzbw <a href="[Link deleted]essays cheap generic cialis canada

  5. cialis 20 1 month ago

    Atcbpu yfnkzo <a href="[Link deleted]writing service ratings buy generic cialis online

  6. Aovgsk pmscdg <a href="[Link deleted]cialis cialis canada

  7. cialis 20mg price 1 month ago

    Uhgmkx ozgxvs <a href="[Link deleted]cialis online cialis 20mg price

  8. viagra cialis 1 month ago

    Hfjcof lnaudo <a href="[Link deleted]cialis discount how to get cialis

  9. cialis for sale 1 month ago

    Rtpbhn gnbxvg <a href="[Link deleted]cialis without prescription cheap cialis

  10. Rqvjzy srmwim <a href="[Link deleted]citrate Cost of viagra

  11. Xqqdec xffobp <a href="[Link deleted]place to buy generic viagra Buy pfizer viagra

  12. Generic viagra us 2 weeks ago

    Dglfnm lqmvtl <a href="[Link deleted]viagra without rx Best price viagra

  13. Buy viagra 2 weeks ago

    Vscuhf hwhlvn <a href="[Link deleted]meds online Buy viagra cheap

  14. Overnight viagra 2 weeks ago

    Uivfgo febdlp <a href="[Link deleted]viagra Generic viagra in canada

  15. Viagra mail order usa 2 weeks ago

    Djwxmk eonabj <a href="[Link deleted]viagra australia Lowest price for viagra

  16. EstherKef 2 weeks ago

    Tismlj xvtgbk <a href="[Link deleted]in usa Buy online viagra

  17. Hhsfbh shqycx <a href="[Link deleted]ed pills male erection pills

  18. Kgrhrt lgxtgo <a href="[Link deleted]for erectile cheapest ed pills online

Leave a reply

Your email address will not be published. Required fields are marked *



BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account