What Are the Different Marine Insurance Jobs?

Marine insurance underwriting is the process of signing an insurance contract between the insurer and the insured. The insurer proposes corresponding insurance conditions according to the insured's insurance intention, and after the insurance parties have reached a consensus, they sign an insurance contract. The quality of the underwriting work is not only related to the smooth execution of the insurance contract, but also to the normal operation of the insurance institution.

Marine insurance underwriting

Right!

Marine insurance underwriting is the process of signing an insurance contract between the insurer and the insured. The insurer proposes corresponding insurance conditions according to the insured's insurance intention, and after the insurance parties have reached a consensus, they sign an insurance contract. The quality of the underwriting work is not only related to the smooth execution of the insurance contract, but also to the normal operation of the insurance institution.

Chinese name

Marine insurance underwriting

Types of

Insurance underwriting

Definition

process

influences

Can insurance institutions operate normally

Marine insurance underwriting work shall follow the following principles: ^[1]

The insurer's maritime risks covered by the insured are generally specified in the "Risk clause" of the insurance policy. The risks in the current maritime insurance policies of various countries can usually be distinguished as follows. ^[2]

Marine insurance underwriting, like other insurances, also needs to go through the steps of obtaining an insurance policy, negotiating, issuing an insurance policy and insurance certificate, and filing a file. ^[1]

The subject matter of insurance refers to the objects to which the rights and obligations of the parties to the insurance contract are commonly directed. It is an entity that may suffer losses when an insured event occurs and needs to be protected. For the insured, the subject of insurance refers to the danger or object that he needs to protect; for the insurer, the subject of insurance refers to the specific thing or target that he wants to protect. Generally speaking, anything that could suffer maritime risks and losses can be the subject of insurance for maritime insurance. According to Article 218, paragraph 1, paragraph 7, of China's Maritime Law, in addition to specifying the ship, cargo, ship operating income (including freight, rent, passenger fare), expected profit of the cargo, ship staff and other remuneration, In addition to the six items of the liability of the three persons, which are the subject matter of marine insurance, a "basket" rule is provided, that is, other property that may be lost due to an insured accident and the liabilities and costs incurred may also be the subject of marine insurance. ^[3]

According to the provisions of the insurance laws of various countries, the losses covered by marine insurance can only be losses directly caused within the scope of the risks covered above. This loss may be total or partial. In some losses, it can be divided into common average and individual average. ^[2]

1. Choice of marine insurance business ^[1]

Choosing an insurance business is underwriting: the number one priority at work. Before underwriting the marine insurer, it is necessary to select the insured object and the subject of insurance to prevent the introduction of uninsurable risks and exclude the unqualified insured and the subject of insurance. Its purpose is to provide protection in a realistic and realistic manner, while improving its own operating conditions in order to obtain operating income. The choice of marine insurance business can be divided into the choice of "things" and "people". The direct objects of marine insurance are things, such as ships and cargo, but the person who owns or controls the property has a significant impact on the danger of the subject matter of the insurance. Therefore, the factors to be considered comprehensively when choosing a business are: the financial ability of the insured, the management level of the insured, the moral concept and credibility of the insured, and the relevant situation of the insurance benefits reflected by the insured object. Factors that may cause danger in the subject matter of insurance; the magnitude and extent of damage caused by the danger. When choosing a specific business, we must focus on the specific characteristics of the subject-matter insured. For example, when underwriting fresh goods in marine transportation, you should consider: whether the storage period of these goods is shorter than the transportation period; whether the temperature and humidity of the goods are suitable for transportation; whether the goods are perishable and spoiled; and the goods must be stored during transportation. Or whether the maintenance equipment is complete. As for ship insurance, since the insurance object, business volume and danger are relatively concentrated, care should be taken in selecting the business, and the focus should be on its airworthiness. In short, due to the strong international nature of marine insurance and the comprehensive nature of insurance risks, once the danger occurs, the economic losses will be greater, and the dispute resolution procedures are more complicated. Therefore, marine insurance underwriting must pay attention to business selection. .

2. Offer price for marine insurance rates

The pricing of maritime insurance rates is a key issue to be addressed in underwriting, and it is related to the smooth progress of insurance operations. Because the asking price is too high, it will increase the burden of the insured and make them dare not ask for it, thereby reducing the insurance demand; if the asking price is too low, it will affect the accounting of the insurance company and is not conducive to the accumulation of insurance funds, thereby weakening the compensation for huge disasters. Capacity will ultimately affect the interests of the insured. Therefore, when underwriting, the premium should be reasonable, and the determination of the marine insurance rate should be based on its composition, taking into account the needs of the international insurance market, because in the marine insurance business, the coverage and protection of almost all types of insurance The risks and guarantees are related to international markets (including trade, shipping, finance, insurance, etc.).

(1) The composition of the marine insurance rate: The insurance rate is the basis for calculating the insurance fee, and the insurance fee is the main source of the insurer's accumulation of insurance compensation and payment of business expenses. Therefore, the composition of the insurance rate is based on these two parts. Come to think about it. Insurance rates usually consist of pure and surcharge rates. The pure rate is calculated based on the loss rate of the insurance subject within a certain period within a certain period of time, while referring to the same range and same period of insurance compensation rate. This calculation basis makes the insurer unable to do whatever it likes when determining the premium rate, which is also the basis for each insurer to obtain a basically consistent basis when determining the premium rate for the same type of insurance. The surcharge rate is the rate used to pay the insurer's business expenses, including the insurer's office expenses, publicity expenses, wages and welfare expenses, handling fees, tax expenses, disaster prevention and loss prevention costs, underwriting claims costs, etc. It is a minor component of the insurance premium rate, but it is necessary. It depends on the insurer's management level and is highly subjective. To enhance the competitiveness of an insurer, it should start with improving the level of business management and reducing business expenses.

(2) Determination of the marine insurance premium rate: Due to different risk factors affecting the subject matter of the insurance, different factors are considered when determining the marine insurance premium rate. In maritime transport cargo insurance, the main factors affecting the insurer's determination of insurance rates are: the carrying vessel, voyage and navigation area, the nature and packaging of the cargo, insurance risks and conditions, climatic conditions and the previous claim records of the insured Wait. In ocean-going ship insurance, the determination of the insurance premium rate is based on the correct determination of the type and degree of danger, with emphasis given to the value of the ship, the age, type, tonnage and equipment of the ship, the creditworthiness and management level of the insured, Statistics on repair costs, insurance types and conditions, and insurance losses of similar risks.

3 Risk control in marine insurance

The risk control of marine insurance, also called danger control, is to stabilize the operation of marine insurance business, reduce the insured's dependence on insurance, and avoid possible moral hazards. Marine insurance risk control mainly adopts two methods: First, it provides customers with disaster prevention and loss prevention services to reduce or avoid the occurrence of losses. The focus of this service should be on providing customers with disaster prevention and loss prevention technical services, so that customers can be urgently needed. For example, the Shanghai Insurance Company has established an "Insurance Disaster Prevention and Safety Technical Service Center", which provides disaster prevention technical services. For some industries with common or influential disaster prevention and loss prevention projects, experts, professors, and scientific and technical personnel are organized. Working together to solve the problem and developing disaster prevention and loss prevention to a technical service level have improved two benefits. For example, in order to reduce the loss of theft of exported goods during transportation, the disaster prevention and loss prevention department of the insurance company will work with experts to develop anti-theft packaging with good quality, low cost, sturdy appearance, and easy storage, which effectively reduces the theft loss. . The second is to limit the scope of insurance and control dangerous growth. Marine insurance is just like other insurances. The insurer's liability to each dangerous unit in the business it covers is limited. If the insurance amount exceeds this limit, it must transfer or limit the danger it assumes. Usually, it takes an insurance limit. Provision of deductibles or deductibles shall be borne by the insured; certain conditions shall be covered by additional conditions. For example, in the cargo transportation insurance, if the goods beyond the control of the insured are forced to be unloaded, reloaded, or transshipped on the way, the insurer requires the insured to notify the insurer immediately after learning of the above situation, and the insurer will add additional fees as appropriate The insurance will only continue to be covered after the insurance premium. If the insured does not notify in time, the consequences will be borne by itself.

4 Diversification of maritime risks

Marine insurance covers comprehensive risks that include property, liability, and interests, including subjective and objective risks. The insurance amount of each dangerous unit is often very high. For example, giant oil tankers, offshore oil rigs, etc. are one insurance company or several insurance companies that cannot bear huge risk liabilities by their own financial resources, and they alone do not meet the principles of economic accounting. . Marine insurers must reinsurer their underwriting business with other insurance companies, and they will bear some or most of the responsibilities. In essence, this method of spreading dangers is the reallocation of risk responsibilities between insurers, and the insurance funds accumulated by them are also reallocated along with the allocation of responsibilities. Because the reinsurance business of marine insurance is usually exchanged internationally, for each insurer, there are both separate and inbound businesses, and thus, each independent marine insurer scattered across the world, Its insurance funds can also form a network to form a huge amount of international funds to jointly bear risks worldwide. Once catastrophe losses occur, insurers around the world are likely to participate in compensation. Therefore, it is necessary for marine insurance to spread risk through international reinsurance. The insurer should, in light of the actual situation, choose an appropriate reinsurance contract form to diversify offshore risks. Currently there are three types of contract reinsurance, temporary reinsurance and appointment reinsurance. These three methods have their own advantages and disadvantages. When applicable, the insurer should comprehensively consider and make a reasonable choice.