Are you preparing for an insurance company interview? This blog post will provide you with a list of the most common insurance interview questions, as well as tips on how to answer them. By preparing yourself for these insurance questions, you’ll be able to walk into your interview with confidence and make a great impression on your potential employer.
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Common Insurance Interview Questions
What do you know about the insurance industry?
Example Answer: I have researched the insurance industry over the last few weeks, and I know that to be successful, you need to adapt as quickly as possible to a changing market.
The insurance industry comprises two main types of insurance products – personal lines aimed at individuals such as motor vehicle or life assurance, and commercial lines aimed at businesses and other organizations such as employers’ liability or public liability.
I also know that insurance brokers generally work with several insurers to get the best deal for their clients. It is important to build relationships with customers and insurers to succeed.
Why did you choose our insurance company to work for?
Example Answer: I have chosen your insurance company because I believe it to be the best in the industry. Your company is known for its innovation and the forefront of new technology, which is important in today’s market.
I am also impressed by your commitment to customer service – your company has a strong focus on putting the customer first, which I feel very strongly about. You also offer excellent training and development opportunities – the chance to earn while you learn with a structured program leading to qualification as an insurance broker.
What do you think it takes to be successful working in insurance?
Example Answer: I think it takes several skills to succeed working in insurance. You have to listen and understand what someone is looking for, then present them with options that best suit their needs. You will also need excellent time management skills to give every client your full attention and always meet deadlines.
Finally, you need to have a passion for the industry as it can be very challenging at times, so if you love what you do, that will help in your role.
What type of insurance are you most interested in?
Example Answer: I am most interested in working with commercial general liability insurance as I think my skills and experience would be best suited.
What are your strengths?
Example Answer: My biggest strength is communicating effectively with people from all walks of life, whether colleagues, customers, or suppliers. I can listen and understand what someone wants then present them with options that best suit their needs.
How would you explain an example of a claim situation?
Example Answer: I would explain the situation to them and what happened during and after the event to understand why it is necessary for an insurance claim. I would then provide examples of previous claims made with similar circumstances, so they know what will happen if they decide not to make an insurance claim now.
What are the main differences between life insurance and general insurance?
Example Answer: The main difference between life insurance and general insurance is the type of cover they provide. Life insurance is designed to protect an individual’s family or business if something happens to them, whereas general insurance covers things like cars, homes, etc.
How would you describe your customer service skills? Give examples from previous jobs or volunteer experiences where these skills were used.
Example Answer: I pride myself on having excellent customer service skills, and I have had several experiences where I have had to use them. In my previous job as a sales assistant, I was always the first point of contact for customers, so I needed to provide them with the best possible service.
Customer Service Interview Questions
Interview Questions on Insurance Terms
Who is an agent?
An agent is an intermediary between the insurer and the insured. They are responsible for selling insurance policies to customers and helping them with any claims or queries. They are paid and authorized to sell insurance on behalf of the company.
What does a broker do?
A broker is someone who helps customers find the best insurance policy for their needs. They will research different insurers and policies to find the best fit for the customer. They will also help with claims and queries once the policy is in place. Customer pays brokers to find the best insurance for them.
Who is the beneficiary?
A beneficiary is a person named in an insurance policy who will receive money if something happens to you. For example, your family would be the beneficiaries (unless they are also listed as insured).
What is underwriting, and what does the underwriter do?
Underwriting is when insurers decide whether or not to accept risk by calculating the likelihood of an event happening. For example, if you are applying for life insurance, then underwriters will look at factors such as your age and health to determine what price they should charge (or whether they should accept the policy in the first place).
What do you mean by claim?
A claim is a demand made by an insured individual or party to pay benefits due under the terms and conditions specified in their insurance policy. The claim process can be challenging to understand if you’re unfamiliar with it, but once you know what each step involves, then everything becomes much clearer.
What do you mean by premium?
Premium is a sum paid regularly by an individual or business entity to keep their insurance policy active. For example, if you buy life cover, then every month, your premium will be automatically deducted from your bank account until either the end of term (when death occurs) or when it expires (if no claims were made).
What do you mean by deductible?
A deductible is the amount of money that an individual must pay out-of-pocket before their insurance policy covers any costs. For example, if you have a $500 deductible on your car insurance policy, you will need to pay for the first $500 worth of damages yourself. After that, the insurance company will start covering expenses up to the limits specified in your policy.
What do you mean by Depreciation?
Depreciation is the reduction in the value of an asset over time. Depreciation can be caused by wear and tear obsolescence or other factors not covered under insurance policies, such as damage from natural disasters (e.g., fire). For example, A house bought for $100k might depreciate to $90k after 20 years, meaning that the insurance company would only pay out $90k if it was destroyed.
What are the different types of Insurance Coverage?
There are several different types of insurance coverage available. Some examples include health, life, car, and home insurance policies. Each protects against specific risks associated with those areas (e.g., medical expenses). The two main categories are liability coverage – which pays for damages caused by your negligence – and property damage coverage -which pays for damages to your property.
What is the difference between liability insurance and property damage coverage?
The main difference between these two types of coverage is that liability insurance protects you from being sued if someone gets injured or their property gets damaged due to something you did (or didn’t do). In contrast, property damage coverage protects your belongings from being damaged or destroyed.
What is the Power of Attorney?
A power of attorney is a legal document that allows you to appoint someone else (the attorney-in-fact) to act on your behalf in certain situations. It could be anything from making financial decisions to signing contracts. It’s important to choose an attorney-in-fact who you trust implicitly, as they will have a lot of authority over your life (and your money) while you cannot make decisions yourself.
What is a Will?
A will is a legal document that states how you want your property and possessions distributed after you die. It’s important to have a will to ensure that your loved ones receive what you intended for them, rather than having the government or courts decide how your estate is divided. A will can also appoint a guardian for your children if they’re underage when you die.
Conclusion
We hope the insurance interview questions and answers shared above will help you in the upcoming interview, please share your experience about the interview or any question which you want us to answer.