The insurance sector, often perceived as traditional and unvaried, is in reality a vibrant field brimming with diverse career opportunities. For those just beginning their professional journey, the industry offers an array of internships and job openings, catering to a wide range of interests and skills. Engaging in events organized by the Rotman Commerce Insurance Association(RCIA) provides a unique platform for making invaluable connections, opening doors to these abundant opportunities.
Insurance is not just about policies and claims; it's a multifaceted industry where various interests and skills converge to create a dynamic work environment. If you have a knack for numbers and a passion for finance, the insurance industry offers a fulfilling path in actuarial science and investment, where assessing risks and forecasting economic trends are key. Those with a talent for communication and sales can find their niche as insurance brokers, understanding client needs and offering tailored insurance solutions. For those interested in law, the insurance industry offers a unique avenue to apply legal expertise in writing and interpreting insurance policies.
Joining RCIA events is more than just attending seminars and workshops; it's about immersing yourself in the industry's culture. These events offer the chance to meet professionals from various sectors within insurance, providing insights into different career paths. Networking here is not just about securing a job or an internship; it's about building relationships that can guide and support your career development.
In conclusion, the insurance industry is a hidden gem, offering a plethora of opportunities for individuals from various backgrounds. Whether your interest lies in finance, sales, or law, there is a place for you in this diverse sector. By engaging with RCIA and its events, you open yourself to a world of possibilities, professional growth, and the chance to be part of an ever-evolving industry. Explore this hidden gem, and you might just find your dream career waiting for you.
Typically, when people think about investing, they think of banks, hedge funds, and private equity firms. However, what many don’t realize is that insurance companies make the majority of their profits through investment. As people pay their insurance premiums a large pool of money is formed which is used to pay out claims. Thus, when people are not making claims an insurance company is able to invest the premiums to generate profits. Some insurance companies also sell financial instruments that individuals can purchase and include as a part of their personal investment portfolio. One of these financial instruments is called a segregated fund which is similar to a mutual fund. Segregated funds are primarily sold by Canadian insurance companies and offer moderate returns on investment along with the benefits associated with a life insurance policy. This means that they are mainly sold by life insurance companies such as Canada Life, Manulife, and Sun Life.
Segregated funds are structured as deferred variable annuity contracts that hold life insurance benefits. A variable annuity is a contract whose value varies based on the performance of an underlying portfolio of smaller accounts known as sub accounts. These underlying portfolios are typically designed to be safer than most investment options with more modest returns as they are often owned by pensioners who cannot afford to lose their retirement savings. An example of a company who manages segregated funds is GWL Realty Advisors which is one of the investment divisions of The Canada Life Assurance Company. Canada Life is the result of a recent merger between The Great-West Life Assurance Company, London Life Insurance Company, and The Canada Life Assurance Company. GWL Realty Advisors currently has $18.5 billion in assets under management (AUM). Their portfolio mainly consists of property management teams and real estate development projects. These are safe investments that can guarantee steady returns for those who have invested in the segregated fund.
The major benefit of segregated funds over traditional mutual funds is that they offer a guarantee of 75% to 100% of the principal investment upon death which is directly paid to the beneficiary named on the policy. However, to maintain this guarantee you must keep the contract until maturity which typically ranges anywhere from 10 to 20 years. Segregated funds also typically have higher management expense ratios (MERs) than mutual funds which are fees charged by the fund to cover operating expenses.
Segregated funds are just one example of how the insurance industry offers career paths for those who are interested in investments, real estate management, and pension funds. Through RCIA you will have the opportunity to network and become more familiar with these opportunities which will be presented to you at our events during the school year.
The insurance industry wields significant influence in our modern world, yet it often remains a mystery to many beyond the routine payment of monthly or annual premiums for home, auto, and life policies. In many cases individuals are forced to have insurance as a result of government policy. For example, in Canada you cannot legally drive a vehicle on the road without having an up-to-date auto insurance policy. These government policies have resulted in insurance companies amassing substantial assets. A prime example is Manulife, a Canadian insurance giant, which currently has $807 billion in assets under management. Additionally, they are ranked #3 in Retail Segregated Funds as of the end of 2021. Our upcoming blog post on October 16th, 2023, will delve deeper into this topic of segregated funds.
Unfortunately, the industry has a bad reputation for being deemed necessary, but not liked. This in combination with the fact that there are various misconceptions regarding insurance means it is often overlooked by people looking for careers post-graduation. However, the insurance sector has a significant number of lucrative opportunities, including mergers and acquisitions (M&A), accounting, marketing, private equity, and real estate investing just to name a few. M&A activity in the insurance sector has experienced a recent surge with a total of 449 transactions completed in 2022. This figure represents the largest number of mergers and acquisitions the industry has seen in over a decade. Currently, the global insurance market is valued at an estimated $5.6 trillion with projections to be worth $9.8 trillion by 2027.
With so many opportunities in an ever-growing industry our goal at RCIA is to help keep you stay informed about insurance and facilitate the establishment of a lifelong network with industry professionals. Subscribing to our weekly blog will also keep you up to date on current RCIA events where you can begin to develop this network. As we continue to write these blogs, we encourage you to leave comments below, indicating which insurance topics you'd like us to explore further in our upcoming posts.
A Day in the Life was unlike any other event we’d held before. To be fair, virtual firm visits are unlike many other events anyway.
The insurance industry is one that is diversified and wide ranging in terms of jobs and opportunities available to those interested. Careers related to the industry can be specific and centralized relating to actuaries, underwriters or claims adjusters, or they can be more decentralized relating to the broader insurance field such as data science, risk managers, or investments division.
Rotman Commerce Insurance Association is a club which was created two years ago to explore opportunities in the lesser-known industry in retrospect. The club was curated with a team of six enthusiastic members who eagerly awaited the official recognition of the club as a student organization at the University of Toronto.
When you think of “insurance,” what picture is painted in your mind?
If you’re like me a year and a half ago, or like most other students I know, your answer would be something like “a bunch of men in a room doing paperwork.” And I don’t blame you. In fact, this is a very common misconception about the insurance industry. However, there are actually many other areas of insurance you might not have known about that consist of so much more than that!
As a marketing student applying to various internships, I can undoubtedly agree that being a part of RCIA has played a significant part in securing internships and leaving a lasting impression during interviews.
To educate and provide meaningful and engaging content for students to learn more about the insurance industry.