Introduction

Marine insurance is of considerable importance to vessel operation. All vessels and cargoes should be insured to cover physical losses and damages as well as liabilities. Marine insurance is generally classified into two types, namely hull and machinery insurance and cargo insurance. These two types of insurance insure respectively loss or damage to the hull and machinery of vessels and cargoes on board.

The marine insurance industry is comprised of insurance brokers, insurance companies (including mutual insurance associations), reinsurance companies and adjusters.

Major Duties

Underwriters are responsible for making decisions in relation to the risks faced by insurance/reinsurance companies. They, on behalf of the insurance companies, assess the risks involved in the insurance/reinsurance policies applied and decide on whether the companies should accept these risks. Their duties include scrutinising the insurance policies to see whether they can cater for the needs of the applicants and checking in detail the information set out in the policies, so as to ensure that the insurance companies can collect premiums that are commensurate with the risks taken, and guard against insurance applications with indicators of possible fraud.

On marine insurance, the insurance/reinsurance market provides hull insurance, marine cargo insurance, port and terminal insurance, marine liability insurance (such as protection and indemnity insurance, freight forwarder or logistics liability insurance, non-vessel operating common carrier liability insurance), business loss insurance, etc. The work of an underwriter is very challenging. Given that the risk involved in each case varies, underwriters have to enrich themselves with professional knowledge and skills, so that they can decide on the best handling method under the ever-changing social and economic environment.

Entry requirements

In general, to become an underwriter, one may serve as an underwriter trainee first. During the training period, he or she can enhance his or her skills in risk assessment, improve knowledge of the major components of the insurance premiums, and have a better understanding of areas covered/not covered under different types of marine insurance policies. With enhanced leadership and insurance knowledge, he or she will be promoted as a senior management officer. Depending on individual development goals and plan, the officer may either continue to be an underwriter, who is tasked to identify the risks of specific insurance types and set the respective premiums, or assume the customer management role to monitor all insurance policies of individual clients, so as to ensure that the policies can fully meet the requirements and needs of the clients. It normally takes about 4 to 5 years to accumulate sufficient experience to become a recognised underwriter in the market.

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