Plenty of people fantasize about careers in strategy consulting or investment banking. Far fewer contemplate a life in insurance.
This, my friends, is a mistake. Reinsurance companies are global entities. They offer good careers and – more importantly – they offer an excellent quality of life. Compared to investment banking now, the compensation on offer at reinsurers is not particularly low and you will actually get to spend evenings and weekends with your family.
What do reinsurers do? Fundamentally, they insure other insurers. The reinsurance industry is a restrained, modest sector, so you won’t necessarily hear a lot about it, but the range of jobs on offer here is enormous. Reinsurers need originators and client managers to bring in business and deal with clients. They need fund managers to invest the flow of premiums they generate. And they need entire teams of underwriters and structuring professionals to create products.
These roles are as – if not more – interesting than any in an investment bank. Reinsurance client managers are responsible for large chunks of revenue and risk that would make even hard-baked bankers sweat. The negotiations related to these contracts are incredibly challenging. Equally, reinsurance structurers are the crème de la crème of financial product professionals. Few other financial products require the same degree of mathe
More importantly, reinsurance has a strong and tangible link to every day life. We are managing the risks related to oil platforms, aircraft fleets, missiles or the Olympics. The solutions we build are often locally focused and targeted to clients’ particular requirements.matical and actuarial understanding. Unsurprisingly, this is a very popular activity for mathematicians and lawyers.
As boring as reinsurance may seem if you work in an investment bank, it is in fact anything but. And most of important of all: this is a growth market, while investment banking clearly isn’t.
The author occupies a managerial position in a reinsurance company in Germany.