Becoming An Insurance Clerk: Steps To Success

An insurance clerk is responsible for processing insurance applications, reinstatements, changes, and cancellations. They work closely with insurance agents and communicate with policyholders to ensure insurance information is accurate and up-to-date. To become an insurance clerk, you typically need a high school diploma, although some employers may prefer a college degree. It usually takes 1-3 years to become an insurance clerk, including on-site training and work experience. Strong communication skills, attention to detail, and administrative skills are essential for this role.

How to Become an Insurance Clerk

Education and Training

Although the minimum educational requirement for insurance clerks is a high school diploma, some employers prefer candidates with an associate's degree or higher. Candidates with a bachelor's degree in business, accounting, or a related field, as well as insurance experience, will be preferred by many employers.

A bachelor's degree in business administration can be a good starting point for a career as an insurance clerk. Coursework typically includes finance for managers, essential business skills, principles of accounting, and management information systems. This degree equips graduates with the skills to apply administrative management disciplines, make decisions based on quantitative techniques, streamline systems and processes, and develop a global perspective to formulate effective solutions.

Some employers offer opportunities for continuing education, and it may be possible to secure an entry-level position with a bachelor's degree and then further your education through a tuition assistance program.

Insurance clerks don't need any extra certification, but previous training in insurance billing is always helpful.

To become an insurance agent, which is a more advanced role in the insurance industry, you will need a minimum of a high school diploma or GED, as well as an insurance license from your state. Most companies prefer candidates with a college degree, and aspiring insurance agents should consider taking courses in business, economics, finance, marketing, or psychology.

Skills

To become an insurance clerk, you'll need a broad range of skills, including:

• Strong communication skills: Insurance clerks need to be able to communicate clearly and effectively with policyholders, insurance agents, and colleagues. They often act as customer service representatives, answering queries and providing information about insurance policies.
• Attention to detail: Insurance clerks must be detail-oriented to accurately process insurance applications, changes, reinstatements, and cancellations. They need to catch errors on insurance applications and ensure that all information is correct and up-to-date.
• Administrative skills: Clerks are responsible for maintaining accurate records, organizing documents, and managing filing systems. They also need to be proficient in using computer applications and software to input and organize data.
• Analytical and numerical skills: A good understanding of numbers and strong analytical skills are essential for insurance clerks. They need to be able to review and verify insurance coverage, process claims, and handle billing and financial transactions.
• Problem-solving skills: Insurance clerks should be quick thinkers who can solve problems on the go. They often work with insurance agents who are coordinating with customers, so being able to adapt and find solutions is crucial.
• Call center experience: As insurance clerks spend a significant portion of their day on the phone, prior experience in a call center or similar environment is beneficial. This includes possessing excellent verbal communication skills and the ability to remain calm and professional when dealing with customers.
• Positive attitude: Changing insurance policies can be stressful for customers. Insurance clerks should maintain a positive and upbeat attitude to help alleviate customer anxiety and provide a good experience.

Job Duties

The job duties of an insurance clerk can vary depending on the company they work for, but most clerks perform the same general duties.

Process New Policies

An insurance clerk's main responsibility is processing policy applications for potential new policyholders. These applications come from a variety of sources, including online applications and agent applications. Insurance clerks enter data from the applications into the company's internal software.

Update/Change Existing Policies

Insurance clerks are responsible for updating existing policies as needed. These changes need to be made promptly as policyholders' life details can change unexpectedly.

Communicate with Policyholders

Insurance clerks often fill the role of customer service representatives. When policyholders call in or send support requests, insurance clerks answer those questions. Strong communication skills are essential for this aspect of the role.

Review Policies and Documentation

Most insurance companies work with a lot of documentation, and it's the responsibility of the insurance clerk to review those records. They also review policies to ensure accuracy before processing them.

Additional Duties

Insurance clerks also:

• Work with insurance agents and brokers to provide necessary information to process clients' applications.
• Verify insurance coverage, benefits, and limitations.
• Process medical insurance claims received from providers and individual members.
• Handle routine customer service inquiries.
• Review and discuss patient accounts, billing status, and debts owed with patients.
• Prepare claim forms and related documents, review them for accuracy and completeness, and transmit them for payment or further investigation.
• Interview clients to obtain information required on new insurance policy applications.
• Correspond with clients and agents to inform them of policy status and changes.
• Keep client and policy records organized and maintained.
• Transcribe data to worksheets and computer software.
• Track active, cancelled, and pending policies.
• Calculate the amount of claims and handle the payout of small claims.

Salary and Outlook

The salary for an insurance clerk can vary depending on location, education, and experience. According to Zippia, the average insurance clerk salary in the United States is $33,089 per year, with salaries ranging from $27,000 to $39,000 per year. Another source, JobHero, cites the Bureau of Labor Statistics (BLS) and puts the median wage for insurance clerks at $38,430 per year. The BLS is also cited by Florida Tech, stating that the average annual salary for insurance claims and policy processing clerks was $40,780 in 2016, with the middle 50% earning between $31,700 and $48,000. The lowest 10% earned approximately $26,510, while the highest 10% earned around $59,310 per year.

The average insurance claims clerk salary is slightly higher, at $37,367 per year, according to Zippia. This role involves working with underwriters to calculate insurance premiums and issue renewals or new business.

Insurance clerks with experience handling online applications may have better prospects, as the evolution of online technology has allowed customers to submit applications from home.

Growth projections for insurance clerks are mostly positive, and the employment rate is projected to remain steady. However, prospective insurance clerks are encouraged to conduct independent research on job growth rates, as these can vary according to location, education, and experience.

In terms of benefits, insurance clerks may or may not receive comprehensive benefits packages, depending on whether they work full-time or part-time.

Job Search

Now that you have the necessary skills and qualifications, it's time to start searching for insurance clerk job opportunities. Here are some strategies to help you in your job search:

• Browse job boards: Online job boards such as LinkedIn, Indeed, or industry-specific platforms are great places to find job postings. Set up alerts for new postings that match your criteria to be the first to know about relevant opportunities.
• Network, network, network: Building a professional network is crucial in any industry. Reach out to your contacts, attend industry events, join professional organisations like the International Association of Insurance Professionals, and connect with people in the insurance field. These connections can provide valuable insights, referrals, and even notify you about job openings that haven't been advertised yet.
• Direct outreach: Make a list of companies you'd like to work for and reach out to them directly. Check their websites for career pages and job postings, or consider sending a speculative application with your resume and a tailored cover letter expressing your interest in working for them.
• Watch out for scams: Unfortunately, job scams do exist, and it's important to be vigilant. Be cautious of opportunities that seem too good to be true, requests for personal information or money, or employers who communicate only via email or messaging apps. Always do your research and trust your instincts.
• Utilise job alerts: Many job boards and company websites allow you to set up job alerts. Take advantage of this feature to receive notifications when new positions that match your criteria are posted. That way, you'll be among the first to know and apply.
• Prepare for interviews: Once you start applying, it's a good idea to prepare for potential interviews. Research common interview questions for insurance clerk positions and practice your responses. Consider conducting mock interviews with a friend or career coach to boost your confidence and refine your answers.
• Follow up: After applying for a position, don't be afraid to follow up. Send a polite email or make a phone call to confirm that your application has been received and express your continued interest in the role. This demonstrates your enthusiasm and helps you stand out from other candidates.
• Stay persistent: Finding the right job can take time, so don't get discouraged if you don't hear back from every application. Stay persistent and keep applying to relevant positions. Remember that the timeline for finding a job can vary, and it's important to stay motivated during your job search.

Frequently asked questions