The United States insurance industry sell over $419 billion of insurance policies annually. This huge industry employs over 2.3 million people, with many responsible for policy administration at individual insurance companies. Policy administration includes a number of different roles.
Insurance products are priced, or rated, according to a complicated algorithm that matches risk characteristics to the possibility of a claim. Rating departments examine factors such as the distance to the closest fire hall, presence of a burglar alarm and local crime rates, and assign credits and surcharges that are used to price the policy. Rate adequacy ultimately plays a vital role in achieving an underwriting profit.
A typical insurance company produces millions of printed insurance policies each year. These policies are created with the help of technology, with clerks and support staff responsible for the accuracy and timely delivery of the documents. An army of staff oversee the assembly, printing and mailing of each policy, as well as the filing or archiving of all documents for future reference.
Every issued policy an insurance company sells is a financial transaction that must be booked, tracked and supported. Billing departments produce invoices, accept payments and coordinate monthly payment plans for the each policy. The billing department is also responsible for providing customer support on all issues related to billing.