Risk can create a lot of stress, so insurance companies help their clients feel more at ease by distributing their risk among a large number of individuals. However, insurance companies also worry about risk and sometimes obtain reinsurance plans. These insurance companies are protected by reinsurance companies, which pay for large claims that the smaller insurance companies cannot pay.
Reinsurance officers are reinsurance company employees who are responsible for reinsurance practices. Reinsurance is a form of insurance for insurance companies. Insurance companies use reinsurance in order to avoid having to pay a large claim. Reinsurance companies receive part of the money that the insurance client paid the original insurance company and in exchange, the reinsurance company takes on the risk. When the original insured makes a claim, the insurance company must pay the original insured. Then the insurance company makes a claim against the reinsurance company. In addition to reducing risk, reinsurance companies reduce the fluctuations of their claims, reduce the risk of insuring countries with political strife or natural disasters and increase the insurance company’s capacity to insure others.
Reinsurance officers usually work 40 hours a week, though management and executives usually work more hours. Reinsurance salesmen might have to work 50 to 60 hours some weeks in order to close sales. Reinsurance officers have to sometimes travel to meet with different insurance companies and sometimes have to examine the scene of a disaster when large claims are made to the insurance company, which makes large claims to the reinsurance company.
Reinsurance companies usually want workers to have some form of post-secondary education. However, most of the training that reinsurance officers receive occurs on-the-job, though some workers are sent to outside institutions to receive training. Math aptitude and computer aptitude will increase the value that a reinsurance officer brings to his company. Those who work with clients need good interpersonal and communication skills in order to successfully communicate the specifics of the reinsurance plans.
The need for reinsurance officers was expected to grow 3 percent from 2008 and 2018, according to the Bureau of Labor Statistics (BLS). Industry consolidation eliminates redundant jobs and technological advancements such as the Internet make it easier for customers to choose their reinsurance plans on their own. Technology also makes reinsurance officers more productive. Spreading the risk among a larger number of clients will also reduce the need for insurance companies to acquire reinsurance.
Reinsurance officers earned an average of $82,000 in 2014, according to online job website SimplyHired. Salaries were higher in some geographic areas, for example, New York City, where the average reinsurance officer took home $96,000.