THE ORIGINS OF INSURANCE IN QUEBEC
The concept of insurance originated in England a few centuries ago. In Quebec, the first insurance companies started up during the French regime in the 17 th and 18 th century. Very soon, the francophone community began investing in this sector, even though the world of finance had long been a mainstay of the anglophone community. In the 1830s, private fire insurance companies started setting up shop. In 1956, when the Mutual Fire Insurance Federation (Fédération des mutuelles-incendie du Québec) was founded, eventually becoming what is known today as the Groupe Promutuel. Up until World War II, the state did not provide any insurance at all; however theses days, it is a major insurer covering a wide range of services including employment insurance, auto insurance, health insurance, etc.
THE INSURANCE SECTOR
This sector is divided into two areas: life insurance, which covers individuals against health problems or helps people prepare for their finances for the future (eg: life insurance and annuity plans), and property and casualty insurance, which insures goods (eg: home and automobile insurance, etc.).
Personal Insurance
When we think of personal insurance, we automatically think of life insurance, but there is also disability insurance, accidental death or dismemberment insurance, dental insurance, travel insurance, as well as insurance that covers serious or long-term illnesses, in addition to pension plans and retirement savings plans.
This is a flourishing market with more than 127 different companies in Quebec. There are some giant corporations such as Manuvie, Sun Life and Great West, as well as medium-sized businesses such as Standard Life, Industrielle Alliance, and Desjardins. In addition, there are a multitude of small businesses specializing in niche markets such as group insurance or annuity-related products. Head offices of the larger companies are mainly located in Ontario, but some of them maintain important regional offices in Montreal.
Property and casualty insurance
Property and casualty insurance, called general insurance covers fires, accidents, and special risks, includes 1,800 companies and brokerage firms with a combined turnover standing at six billion dollars. This sector employs some 23,000 people; 11,000 are certified insurance agents, brokers and claims adjusters, and their work is regulated by the Autorité des marchés financiers (AMF) of Quebec.
JOB PROSPECT IN THIS SECTOR
Employment prospects in this sector are exceptional.
Despite the wave of mergers and takeovers in the last few years, the personal and life insurance sector is expanding. The aging population and worries about the state healthcare system are only contributing to its overall growth. It is significant to note that since the prescription medicine plan was put in place, it has not hindered the progress of this sector.
There is a serious lack of qualified workers, not only because the industry is in expansion (especially due to ‘direct’ insurers who make contact with consumers through their agents), but also because a lot of people employed in the insurance sector will soon be retiring. According to a survey commissioned by the Coalition for the Promotion of Personal and Casualty Insurance, more than 4,000 jobs will open up in 2008, which means that nearly a third of the current workforce will be retired by the end of 2008.
TRADES IN THE INSURANCE BUSINESS
Examples of different trades in the insurance sector
Underwriters are responsible for fixing the insurance premiums for life insurance policies. As the amount of the premium depends on the risk taken by the insurance company, the underwriter must first of all evaluate the client’s state of health. It is possible for underwriters to seek assistance from a doctor but very often they should have enough medical knowledge to figure out how to make sense of medical files. In certain cases, they may send a nurse to a client for a urine or blood test.
Insurance companies are now recruiting people who have at least a DEC (diplôme des études collégiales), but they also favour candidates who have an interest in health-related fields such as nurses wanting to make a career change.
Claims adjusters are the ‘Sherlock Holmes’ of the industry. Every time someone files an accident claim (fire, flood, car accident) the claims adjuster investigates the person insured and talks to the police, any witnesses, and the client’s lawyers in order to write up their reports in which they establish the circumstances of the disaster and the extent of the damage. To be a good claims adjuster, you cannot simply know how to deal with insurance contracts, you also have to be comfortable in the field and exercise tact when dealing with clients.
Certain claims adjusters work for insurers or independent firms specializing in claims adjustments, while others known as ‘public claims adjusters’ defend the rights of policy holders.
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