Career Definition of an Insurance Risk Manager
Insurance risk managers may work for a variety of different business types. While some duties vary based on employer, these professionals are largely tasked with assessing the risks associated with an organization's operations and ensuring a company has purchased enough insurance to prevent financial losses in the event a claim does have to be filed. They are also responsible for developing insurance budgets, paying invoices to ensure consistent coverage and managing existing claims.
Insurance risk managers also scrutinize insurance claims and factors that can contribute to claims. Their objective is to find ways to reduce the likelihood of an insurance claim by taking such actions as improving safety protocols or installing new equipment that has better safety features. By determining how a company can reduce their potential risks, they can help reduce the costs of their insurance policies. In order to do their work effectively, they must be able to gather data, review procedures, identify ways to reduce risk and develop a strategy for implementing changes in the workplace. Other duties insurance risk managers may perform include training staff about risk awareness.
|Educational Requirements||Bachelor's degree|
|Job Skills||Communication skills, analytical skills, mathematical skills, budgeting skills, attention to detail, organizational skills, computer skills, ability to teach others|
|Median Salary (2020)*||$73,698|
|Job Outlook (2018-2028)**||6% (financial specialists, all other)|
Sources: *PayScale.com; **U.S. Bureau of Labor Statistics
To prepare for a career as an insurance risk manager it is advisable to study risk management, finance or a related discipline, such as business. Employers may expect insurance risk managers to have a bachelor's degree. Insurance risk managers also need computer skills and analytical skills. They can benefit from having accounting skills as well and should take courses that will develop abilities in these areas.
Insurance risk managers must have strong analytical skills because they are responsible for gathering and reviewing large amounts of data when assessing risk. They need to be able to use that data to form conclusions and identify strategies to address potential risks, so strong problem-solving skills are essential. They also need effective communication skills to convey their findings as well as mathematical skills to calculate the level of risks from different variables and produce a cost-benefit analysis when proposing operational improvements to reduce risk.
Career Outlook and Salary
The listing for ''financial specialists, all other'' provided by U.S. Bureau of Labor Statistics (BLS) encompasses the role of insurance risk managers. The BLS expects employees in this occupational category to see a 6% increase in jobs from 2018 to 2028. As of 2020, PayScale.com indicated that insurance risk managers earned a median annual income of $73,698.
Other careers that involve using the strong analytical skills that insurance risk managers need include bank financial analyst, risk management specialist and insurance underwriter. Learn more about these similar career options via the links here.