Alyssa Lane
The finance industry is a highly competitive field with a vast range of jobs, from accountants to investment bankers and financial advisors. Entry-level salaries for finance majors are expected to average $64,887 in 2024, according to the National Association of Colleges and Employers (NACE). However, some entry-level positions, such as financial analysts, can earn a median salary of $99,890. In contrast, the insurance industry offers a good living wage with high growth potential and job security. Entry-level claims adjusters, for example, can earn around $32,000 to $65,000 per year, while more complex roles in injury or litigation claims can pay upwards of $80,000.
| Characteristics | Values |
|---|---|
| Entry-level insurance job roles | Claims adjuster, actuary, health or medical insurance specialist, insurance broker, insurance underwriter, field examiner, financial manager, chief risk officer, energy trader, commercial banker, proprietary trader |
| Entry-level finance job roles | Financial analyst, personal financial advisor, financial manager, chief risk officer, energy trader, commercial banker, proprietary trader |
| Salary for entry-level insurance jobs | $32,000 to $90,000 per year |
| Salary for entry-level finance jobs | $64,887 to $99,890 per year |
| Job availability | Both industries have a growing number of jobs, with the finance industry being highly competitive |
| Work-life balance | Insurers are taking strides to ensure their employees can enjoy ample time to pursue interests outside work |
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What You'll Learn
Entry-level insurance jobs: salaries and demand
Insurance is an industry with many career paths to choose from, including finance, sales, adjusting, and investigating. The insurance industry offers a good living wage with high potential for growth. As long as people require financial protection, insurance will always be in demand.
Actuaries are among the highest-paid professionals in the insurance industry. They price insurance policies and advise corporations on regulatory standards and capital management. They also maintain daily correspondence with clients and implement risk management software. There are four actuary specializations: property and casualty, life, health, and pension. A pricing actuary, for instance, is a statistician who calculates risks and analyzes data to determine the price of products. They ensure that the company's expenses, such as the cost of claims or employee retirement, are covered.
Another high-paying role in the insurance industry is that of an underwriter. Underwriters review potential clients' information to determine if providing insurance is a good investment and under what terms. They serve as a link between the insurance company and sales agents, weighing the pros and cons of insuring someone while considering the company's interests. Senior underwriters decide when to offer a policy, assess the risk of customers, and ensure the company has adequate funds to finance each claim.
Health or medical insurance specialists work in healthcare facilities, overseeing financial proceedings for patients. They check insurance coverage, verify health information, and coordinate with health professionals and patients on billing-related matters. They may also need to proofread billing and medical coding to avoid errors.
Entry-level claims adjusters in the insurance industry can expect a salary of around $32,000 per year. However, salaries can vary depending on the complexity of the claims handled. For example, injury claims or litigated claims tend to pay more. Moving to a different company after gaining some experience can also lead to higher earnings.
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Entry-level finance jobs: salaries and demand
The finance industry in the U.S. is vast, with a range of jobs available, from accountants to investment bankers and financial advisors. The number of jobs in the finance industry is growing faster than in most fields. According to the U.S. Bureau of Labor Statistics (BLS), there were about 404,800 financial analyst jobs in the U.S. in 2023, and this number is projected to grow to 442,800 by 2033. This represents an average growth rate of 9% for the profession through 2032, which is much faster than the average for all occupations.
Financial analysts are responsible for consolidating and analyzing budgets and income statement projections, preparing reports, conducting business studies, and developing forecast models. They also research economic conditions, industry trends, and company fundamentals, and often recommend a course of action for corporate investing, reducing costs, and improving financial performance. The median salary for financial analysts was $99,890 in 2023, according to the BLS. However, the National Association of Colleges and Employers (NACE) lists an expected average first-year salary of $64,887 for finance majors as of 2024.
Personal financial advisors evaluate the financial priorities of individuals and help them make decisions about investing, budgeting, and saving over the long term. They help clients strategize for short- and long-term financial goals, such as tax planning, retirement planning, and estate planning. Many personal financial advisors also provide tax services or sell insurance, in addition to providing financial counsel. They might offer financial products such as mutual funds, directly manage investments, or serve as a liaison between the individual and an asset manager. The BLS estimated the median annual wage in 2023 for personal financial advisors was $99,580, and it projects a much faster-than-average growth of 17% per year through 2033.
To become a financial analyst or personal financial advisor, a bachelor's degree in finance, accounting, or economics is typically required, along with robust information technology (IT) skills. For personal financial advisors who buy or sell stocks, bonds, or insurance policies, or provide specific investment advice, various licensing examinations must be passed. Most of these licenses will be acquired on the job, as you must be employed or sponsored by a securities or investment firm to take them. However, the basic SIE exam should be taken before beginning your job search.
The finance industry is highly competitive, so it is important to treat the job search process as a job in itself, network extensively, and stay up to date with the latest finance news. Online job search websites such as LinkedIn, Monster, and Indeed can be helpful, as well as sites that specialize in finance industry jobs, such as eFinancialCareers, BrokerHunter, and 10X EBITDA (for investment banking).
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Qualifications and experience needed for entry-level insurance jobs
While the insurance industry may not require a four-year college degree, there are still qualifications and licenses needed for entry-level insurance jobs. A high school diploma or a two-year associate degree can help you land an entry-level sales agent position. Customer service representative (CSR) roles are also a great way to enter the insurance industry and often require the same level of education.
CSRs start by learning one product line and can gradually learn more to increase their pay. Previous call center or customer service experience can also help you earn more as a CSR. To advance, you can move to a position serving large group policyholders or transition into product development or sales support.
In the United States, you will need a state-issued insurance license for each product line you sell. Most states require prelicensing education, and some have licensing exams. Without a degree, you can boost your credibility by pursuing industry designations such as the Chartered Property Casualty Underwriter (CPCU), Associate in Personal Insurance (API), or Accredited Advisor in Insurance (AAI).
If you're interested in a career as a life insurance actuary, you'll need a bachelor's degree in mathematics, actuarial science, or a related field, along with professional actuary certification. Actuaries are responsible for pricing insurance policies, advising corporations, and managing risk. They also maintain daily correspondence with clients and implement risk management software.
Other entry-level insurance jobs include medical billing representative, administrative assistant, and health or medical insurance specialist. As the insurance industry is always in demand, there are numerous career opportunities available that offer a good work-life balance and earning potential.
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Qualifications and experience needed for entry-level finance jobs
Entry-level finance jobs are a great way to kickstart your career in the finance industry. These roles typically require a bachelor's degree in finance, accounting, economics, or a related field. A master's degree in a similar field can also be beneficial, but it is not always necessary.
In addition to academic qualifications, internships and work experience are highly valued by employers. Many financial firms offer internships, which can provide invaluable contacts and experience, and often lead to further opportunities within the company. For those who have already graduated, continuing education can be a way to boost your qualifications and demonstrate your commitment to a career in finance.
When it comes to skills, proficiency in financial modelling software like Excel is important, as are analytical skills, such as the ability to analyze financial data, identify trends, and draw insights. Strong communication skills, both written and verbal, are also essential, as is the ability to work well in a team and manage your time effectively.
Some entry-level finance jobs to consider include financial analyst, junior tax associate, financial auditor, investment banking analyst, and financial advisor. These roles provide foundational knowledge and skills that can set you up for a successful career in finance.
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Day-to-day tasks of entry-level insurance and finance jobs
Day-to-day tasks of entry-level insurance jobs
Entry-level insurance positions include claims adjuster trainee, insurance agent, insurance broker, and customer care specialist. The day-to-day tasks for these roles may include:
- Reviewing and verifying insurance coverage information in submitted claims.
- Data entry and management, including accurate data review and entry into customized claims systems.
- Providing exceptional customer service via phone, email, chat, or social media platforms.
- Working directly with clients to assist them with homeowners, auto, health, flood/wind policies, and more.
- Creating sales training programs and ensuring transactions meet federal, state, and local regulations.
- Assessing client risks, performing financial analysis, and creating reports for salespeople and management.
Day-to-day tasks of entry-level finance jobs
Entry-level finance positions include financial analyst, tax associate, auditor, financial advisor, and investment banking analyst. The day-to-day tasks for these roles may include:
- Analyzing financial data and trends to help businesses make investment decisions and manage financial planning.
- Preparing reports, conducting business studies, and developing forecast models.
- Researching economic conditions, industry trends, and company fundamentals.
- Producing deal-related materials, performing industry research, and financial analyses of corporate performance.
- Assisting with basic accounting duties such as ledger management, invoice processing, and preparation of financial statements.
- Working under senior auditors to review financial records and ensure compliance with laws and regulations.
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Frequently asked questions
Entry-level jobs in insurance include claims adjusters, health insurance specialists, and life insurance sales agents.
Entry-level jobs in finance include financial analysts, financial advisors, and commercial bankers.
Salaries for entry-level insurance jobs vary, with some earning $32K per year, while others earn $65K per year.
The National Association of Colleges and Employers (NACE) lists an expected average first-year salary of $64,887 for finance majors as of 2024. Financial analysts earned a median salary of $99,890 in 2023.
Both industries offer job security, good work-life balance, high earning potential, and challenging and rewarding work. The finance industry is highly competitive, while the insurance industry offers a high demand for professionals due to the diverse range of services provided.
