A marine underwriter is an insurance professional who insures boats and ships. Workers in this position assist business owners in selecting the appropriate type and amount of marine insurance coverage to protect their assets from loss. Marine underwriters are frequently called upon to provide adequate coverage not only for a vessel, but also for cargo being transported by sea.
The oldest form of insurance is marine coverage, also known as “underwriting.” A ship underwriter’s job has been around since the 1300s, when European shipping companies developed insurance policies to protect valuable cargo. In most major countries, the marine underwriting process is now regulated and standardized by law. Modern marine underwriting is frequently combined with air and ground insurance and sold as a “Marine, Aviation, and Transit” (MAT) coverage package.
A marine underwriter must assess the likelihood of risk before a vessel can be insured. To determine the likelihood of a ship being damaged or lost, underwriters use a combination of statistics and investigation. A marine expert may inspect a cargo vessel, for example, to ensure that it is seaworthy and equipped with safety equipment. Statistics such as a shipping company’s financial health and the history of previous events are also taken into account by underwriters.
Insurance professionals must be familiar with maritime laws and conditions in a variety of countries, as these can have a direct impact on insurance costs. Some sea routes take cargo ships through dangerous areas where modern piracy is a threat, or through harsh weather conditions. When evaluating a proposed insurance plan, marine underwriters must consider a variety of factors.
An insurance policy is created after a marine underwriter has calculated the potential risk to a ship. A policy for a low-risk shipping company is typically less expensive than a comparable policy for a high-risk operation. If the risks are too great, an underwriter can choose to raise the insurance rate for a risky venture or deny coverage entirely.
The work of a marine underwriter does not end when the policy is issued. Workers in the insurance industry must continue to monitor a transport company’s performance in order to adjust the insurance rate in response to actual events. A marine cargo company that loses or damages goods on a regular basis may be forced to pay an adjusted premium, just as a bad driving record will often cause individual insurance rates to skyrocket.
When an insurance loss occurs, such as a vessel fire or cargo theft, underwriters collaborate with investigators to determine who is to blame. If the policy covers an unintentional loss, the insurance company will pay out. A marine underwriter must thoroughly examine each incident to ensure that no fraud occurs and that the proper insurance payment is made.