FP&A Career Question
Was recently referred to an FP&A position at an insurer. I currently cover insurance stocks in ER and have been looking to leave and am not really interested in insurance. How likely is it to switch from insurance FP&A to other industries after you gain some experience? I am not sure if it would be more wise to wait and see if I could find a different opportunity in FP&A outside of insurance or take it, learn, and try to pivot out in a couple years. I understand other companies look for cost accounting and you won't really be exposed to that in insurance. Any advice would be useful.
Based on the most helpful WSO content, transitioning from FP&A in one industry to another can be quite feasible, especially if you're at an earlier stage in your career. Here's what you might consider:
Transferable Skills: FP&A roles generally require a strong foundation in financial analysis, budgeting, forecasting, and strategic planning. These skills are valuable across various industries.
Industry-Specific Knowledge: While it's true that certain industries have specific requirements, such as cost accounting in manufacturing, the core FP&A skills you develop in the insurance industry can still be relevant elsewhere.
Brand Recognition: If the insurance company you're considering is well-recognized, this could be beneficial when looking to pivot to another industry. A strong brand can add weight to your resume.
Networking and Internal Opportunities: Once you're in a company, performing well can open doors to different roles within the same organization, potentially even in different departments or industries if it's a diversified company.
Diversity of Experience: Having a range of experiences can be seen as a positive by many employers. It shows adaptability and a breadth of knowledge.
If you're not keen on insurance, you might want to consider how long you're willing to stay in that industry before moving on. It could be a strategic move to gain experience and then pivot, or if you're certain about not wanting to be in insurance, it might be worth waiting for the right opportunity in a different industry.
Remember, every move is a trade-off, and while FP&A skills are quite transferable, the longer you stay in one industry, the more specialized your experience becomes, which can make transitioning to a new industry more challenging but not impossible.
Sources: Q&A: F500 Director of FP&A, Q&A: F500 Director of FP&A, Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii, Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii, https://www.wallstreetoasis.com/forum/investment-banking/public-finance-qa?customgpt=1
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