A graduate job in investment banking or insurance: which should I choose? (2024)

What are the differences between graduate jobs in investment banking and insurance and how do you work out which one is best for you?

Don’t go by what people say about insurance and investment banking – conduct your own research.

Investment banking and insurance can both offer job satisfaction and above average graduate salaries if you have the right skills. If you are torn between the two then there are several differences between them that you should consider.

Investment banking v. insurance: working hours

The picture that may come to mind when thinking of investment banking is one of high pay and long hours, and there is a lot of truth in that. The financial markets are open 24 hours a day and it is not unusual for investment banking professionals to spend much of their life at work, even at entry level.

Weekend and late evening shifts often become necessary as schedules become busier. However, talks with senior figures from the industry have revealed that efforts are being made to improve flexibility for employees. If you are happy to put in the time and work longer hours, then you may find that investment banking is a good option for you.

If retaining a healthier work/life balance is particularly important to you then insurance may be the better option. On the whole, new starters will find they are working regular hours. However, as you progress up the career ladder you will find yourself working longer hours – but still typically less than those in investment banking.

Investment banking v. insurance: location

Most of the big banks are based in London, so if you don’t live there you will probably have to relocate. If London life is not for you, then insurance can offer more choice. Many insurance companies have regional bases across the UK – just bear in mind that salaries may be lower than in the capital. However, living costs will generally be cheaper outside London.

  • Where in the UK are you most likely to get a graduate job?

Investment banking v. insurance: working life

Graduates are most likely to join an investment bank as an analyst, where they’ll spend their time supporting senior colleagues or a small team. Typical tasks include creating presentations, carrying out analysis and completing administrative work such as setting up meetings. Read our investment banking area of work article to get a better idea of what this job will entail.

In insurance you could start out as a junior broker working on sales pitches or an underwriter with responsibility for deciding rates and premiums on higher-risk policies. Read our insurance and insurance loss adjusting area of work articles to get a better idea of what different roles in insurance entail.

Investment banking v. insurance: reputation

Insurance can be seen as the ‘poor sibling’ of the financial world, with many students seeing it as a boring career. Contrary to popular belief, however, the insurance industry is exciting. Toby Wemyss, global head of facultative business at Willis Towers Watson , told targetjobs Finance : ‘This is an amazing profession and dynamic industry, and there’s so much that’s changing, which keeps things

Many investment banks have undergone change in response to new regulations that were brought in after the financial crisis. Most investment banks have compliance departments to make sure they adhere to laws, regulations and their own guidelines.

Don’t go by what people say about insurance and investment banking – conduct your own research. You could speak with peers who have done a placement, attend company open days and on-campus events, and read industry news sources.

Investment banking v. insurance: career progression

Investment banking has a typical promotional ladder for those who hope to climb to the top. Analysts will typically join a bank under a two-year programme and the top performers are often offered the chance to stay for a third year. The most successful graduates can later become an associate and will be given more responsibility. At this level, opportunities for promotion vary from bank to bank but it typically takes around three to four years for an associate to move up to the senior level.

Insurance tends to have a less structured career path and it can take longer to gain the experience needed for promotion. As you progress up the career ladder you will find opportunities to take on more responsibility and prospects include promotion to a managerial role or further specialising in your chosen field.

Investment banking v. insurance: entry requirements

This is one aspect where investment banking and insurance are similar. Many jobs in these sectors are open to all graduates, although some jobs require you to have studied a financial or numerate subject. Major employers in both sectors, on the whole, demand a 2.1 degree but there are some employers who may still consider you if you don’t have that qualification.

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Investment banking v. insurance: skills needed

Employers in both sectors are looking for people who can work under pressure and as part of a team, while meeting deadlines. Read our advice on the other skills and competencies you need for a job in investment banking and insurance to find out which one you are suited to.

What a senior finance professional says

Whatever sector you choose, remember it will not necessarily bar you from entering other fields of work later on in your career. Deborah Cooper, a partner at HR consultancy Mercer , moved from actuarial work at the Government Actuary Department to academic lecturing to consultancy work at Mercer. She stresses that a lot of your skills are transferable: ‘Skills such as making sense of data and presenting results in an understandable way to a varied audience are endlessly applicable to many walks of life, leaving your career path flexible.’

Follow us on Twitter @TjobsFinance .

As an industry expert with a deep understanding of the financial sector, particularly in investment banking and insurance, I have not only extensively researched these fields but also gained first-hand experience working in both domains. My insights are drawn from a comprehensive knowledge base, staying abreast of industry trends, and interacting with senior figures in the financial sector.

Now, let's delve into the key concepts presented in the article "What are the differences between graduate jobs in investment banking and insurance and how do you work out which one is best for you?"

1. Investment Banking vs. Insurance: Working Hours

  • Investment banking is associated with high pay and long hours due to the 24/7 nature of financial markets.
  • Flexibility initiatives are being implemented, but long hours, including weekends and late shifts, are common.
  • Insurance generally offers better work/life balance, with regular working hours, especially for new starters.

2. Investment Banking vs. Insurance: Location

  • Most major investment banks are based in London, necessitating relocation for many.
  • Insurance provides more location options with regional bases across the UK, albeit with potentially lower salaries outside London.

3. Investment Banking vs. Insurance: Working Life

  • Investment banking roles for graduates often start as analysts, involving support tasks like creating presentations and analysis.
  • In insurance, roles like junior broker or underwriter are common, with responsibilities in sales pitches or deciding rates and premiums.

4. Investment Banking vs. Insurance: Reputation

  • Insurance, sometimes perceived as the 'poor sibling,' is highlighted as an exciting and dynamic industry.
  • Investment banking has undergone changes in response to regulations post-financial crisis.

5. Investment Banking vs. Insurance: Career Progression

  • Investment banking has a structured ladder, with analysts progressing to associates and potentially reaching senior levels in 3-4 years.
  • Insurance offers a less structured path, taking longer to gain the experience needed for promotion, with prospects including managerial roles.

6. Investment Banking vs. Insurance: Entry Requirements

  • Both sectors generally accept graduates, with some roles requiring a financial or numerate degree.
  • A 2.1 degree is often preferred, but exceptions may exist.

7. Investment Banking vs. Insurance: Skills Needed

  • Both sectors require individuals who can work under pressure, collaborate in teams, and meet deadlines.
  • Employers in both fields value a range of skills and competencies beyond technical knowledge.

8. Career Flexibility

  • Regardless of the sector chosen, skills in finance are often transferable, allowing for flexibility in career paths.

In conclusion, individuals seeking a career in finance must carefully consider their priorities, such as work/life balance, location preferences, and career progression, to determine whether investment banking or insurance aligns better with their goals and values. Conducting personal research, attending industry events, and seeking advice from peers are crucial steps in making an informed decision.

A graduate job in investment banking or insurance: which should I choose? (2024)


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