7 Reasons to Major in Risk Management and Insurance

While the economy no doubt has an impact on the insurance industry, it should be noted that consumers and business still continue to need insurance.

Additionally, the industry is facing a significant loss of talent in the near future. A McKinsey & Co. study suggests that 25 percent of insurance industry professionals will retire by 2018, which will provide opportunities for the next generation of graduates to contribute in meaningful ways to the industry.

Financially Rewarding

Careers in risk management and insurance can be financially rewarding. Some career paths, such as in Actuarial Science are some of the highest paid and have the highest demand in the U.S. In addition, an emphasis in risk management and insurance can provide specific skills as compared to a general business major. Those specific skills can lead to higher salaries.

Clear Career Paths and Opportunities for Advancement

Majoring in risk management and insurance can lead to numerous opportunities and career paths within the insurance industry as well as other industries. Examples include careers as actuaries, risk managers, underwriters, financial and risk analytics, compliance, and internal audit to name a few.

The insurance industry requires specific skills and knowledge. That industry specific knowledge sets up barriers to entry where it can be extremely difficult for someone coming in from an entirely different industry to succeed as quickly as an experienced insurance professional. Acquiring that specific knowledge, coupled with the upcoming talent shortage provides fertile opportunities for growth and advancement.

Risk management and insurance majors are usually part of a University’s business program and therefore require additional business classes similar to those required by a business major. Therefore, if you choose not to pursue a career in the insurance industry, you will have the core business knowledge to pursue careers in other industries. Think of a risk management and insurance degree as a focused business degree.

Opportunities to Help Others

An insurance policy is just a piece of paper representing a “promise” to be there when policyholders need them the most. It is when a policyholder makes a claim that they will learn whether they have selected a strong insurance company or not. That peace of mind promise that insurance companies provide is taken very seriously. You will have opportunities to help those in times of need.

Good corporate citizenship is a core value of many in the industry. Many companies provide numerous opportunities to volunteer in local and national causes. A 2015 McKinsey & Co study found that the U.S. property-casualty insurance industry contributed $575 million to charity in 2014, up about 15 percent from 2011.

Solid Benefits

As mentioned, the insurance industry is technical in nature and therefore provides highly competitive compensation and benefits in an effort to attract and retain talented employees with the appropriate skills. A major in risk management and insurance will provide you foundation to build your technical skill set and growth as a professional.

Many insurance companies are large multi-national corporations with offices around the world. If you enjoy travel, careers in risk management and insurance may be your ticket to experience new cities around the globe.

A career in risk management and insurance can be very challenging, rewarding, and constantly evolving.