Becoming A Marine Insurance Broker: Steps To Success

Marine insurance brokers play a crucial role in safeguarding their clients' businesses and assets. They require a broad range of knowledge and skills to navigate the complex world of marine insurance, which covers loss or damage to ships, boats, and their cargo. To become a successful marine insurance broker, one must understand the diverse needs of clients, stay updated with evolving market trends, and possess strong negotiation and analytical skills to design customized insurance solutions. This career path demands a strong commitment to professional development, including obtaining certifications and licenses, to ensure expertise in the field and provide reliable services to clients.

Marine insurance adjuster certification

Marine insurance adjusters are responsible for investigating marine insurance claims to determine whether benefits should be paid out. To become a certified marine insurance adjuster, you must obtain the Associate in Marine Insurance Management (AMIM) certification. This certification is overseen by the Insurance Institute of America (IIA), also referred to as "The Institutes".

The AMIM certification is designed for professionals who advise clients in marine insurance. The curriculum covers how marine insurance protects against the loss or damage of ships, cargo, hulls, terminals, shipyards, and any property involved in the transfer of cargo. To earn this certification, you must complete six classes:

• Ocean Marine Insurance
• Inland Marine Insurance
• The Legal Environment of Insurance
• Foundation of Risk Management, Insurance, and Professionalism
• Two electives from a list of 19 insurance-related courses, including risk assessment, underwriting commercial property/liability, and claim handling principles/practices.

These courses are offered by various online and offline resources, including IIA. The cost of training varies depending on the resource, but if you order course materials through IIA, the cost for the four primary courses is around $490.

Once you have completed the required courses, you must pass a two-hour AMIM examination, consisting of six tests covering the material in the courses. As of the time of writing, the examination fee is $220 if taken at an approved on-site testing centre. Additionally, you must pass the "Ethical Guidelines for Insurance Professionals" examination, a 50-question exam offered by the Institutes at no charge.

It is important to note that, in addition to certification, many states require licensing for marine adjusters. The AMIM certification does not impose any experience or education prerequisites, and continuing education courses or annual fees are not required to maintain the certification. Obtaining this certification can set you apart from your peers, leading to potential benefits such as higher pay and faster career advancement.

Licensing for marine adjusters

Many states in the US require licensing for marine adjusters. The licensing procedure and requirements may vary across states. For instance, in California, to obtain a Yacht and Ship Broker License, you must meet the following requirements:

• Be at least 18 years of age.
• Have an established place of business located in California.
• Have been employed as a licensed California Yacht Broker or Salesperson for at least one year in the past five years.
• Have owned and operated a marine business in California selling new or used yachts for at least three continuous years before applying for a broker's license.
• Have been employed as a yacht broker or yacht salesperson in another state for a minimum of three continuous years before applying for a California broker license.

In addition to meeting the above criteria, applicants must submit a completed application form, a $200 fee, a $25 written examination fee, a current photograph, and a Yacht and Ship Broker Surety Bond Form. A passing score of at least 70% on the written examination is required to obtain the license.

In Florida, to obtain a license to become a yacht and ship broker, you must submit an application (DBPR FORM YS 6000-1), a $551 fee, a complete set of fingerprints, and an original surety bond or letter of credit in the amount of $25,000.

It is important to note that licensing requirements may change over time, so it is advisable to refer to the official sources and websites for the most up-to-date information.

Associate in Marine Insurance Management (AMIM)

The Associate in Marine Insurance Management (AMIM) is a professional designation for marine insurance professionals. The AMIM is designed to deepen the understanding of marine insurance for those who frequently advise clients in marine insurance cases. The program covers ocean marine insurance, inland marine insurance, principles of risk management and insurance, and insurance company operations.

The AMIM program was developed with the technical and financial assistance of the Inland Marine Underwriters Association and the American Institute of Marine Underwriters. It is offered by The Institutes, a risk management and insurance knowledge group that provides educational support, resources, and research to help people working in risk management and insurance.

The AMIM designation is recommended for marine managers, marine underwriters, agents and brokers, agency principals, claims adjusters, risk managers, call center personnel, customer service representatives, and commercial package underwriters. The program can be completed in 12-15 months and includes four courses, plus an ethics course. The four courses cover ocean marine insurance, inland marine insurance, becoming a leader in risk management and insurance, and meeting challenges across insurance operations.

The AMIM designation provides valuable skills and knowledge for individuals working in the fields of ocean marine and inland marine insurance. It helps individuals understand the coverages offered by ocean marine insurance products, evaluate the terms and conditions of specific shipments, and identify ocean marine liability loss exposures to provide adequate levels of indemnity insurance. The program also covers inland marine risks, including property and liability loss management, and provides a holistic view of the inland marine coverages available to help customers manage their unique risks.

Reasons to get certified

Marine insurance brokers are vital to the shipping industry and shipowners, helping them navigate the complex world of marine insurance policies and ensuring they make the best decisions to protect their business and assets. Here are some reasons why becoming a certified marine insurance broker can be beneficial:

Distinguish Yourself from Peers:

Certification adds a valuable credential to your profile, setting you apart from your peers in the highly competitive marine insurance industry. It showcases your expertise, commitment to professional development, and dedication to providing quality services to clients.

Enhanced Career Opportunities and Income Potential:

Certification can lead to faster career advancement and higher-paying jobs. According to the Economic Research Institute's 2012 salary data, certified marine insurance adjusters earned an average annual salary of $58,151.

Minimal Educational Requirements:

The path to becoming a certified marine insurance broker is accessible. While it requires taking six classes, including ocean marine insurance, inland marine insurance, and the legal environment of insurance, there are no experience prerequisites. The educational requirements are minimal, making it achievable for those new to the field.

No Post-Certification Requirements:

Maintaining your certification does not come with any mandatory post-certification obligations, such as continuing education courses or annual fees. Once you obtain your certification, you can focus on applying your knowledge and skills in the field without worrying about ongoing requirements to keep your certification active.

Value-Added Services:

As a marine insurance broker, you will provide essential services beyond simply procuring insurance. This includes risk assessments, insurance consulting, regulatory and legislative updates, and claim assistance. These value-added services not only enhance your clients' experience but also contribute to your expertise and reputation in the industry.

In conclusion, pursuing certification as a marine insurance broker empowers you with the knowledge and recognition to excel in this field. It opens doors to career advancement, increases your earning potential, and positions you as a trusted advisor to clients in the marine industry, ensuring their assets and businesses are adequately protected.

How to get certified

The certification for a marine insurance broker is called an Associate in Marine Insurance Management (AMIM). This certification is a distinction that sets an individual apart from their industry peers and can lead to higher pay and faster career advancement. The AMIM certification was developed with the technical and financial backing of the American Institute of Marine Underwriters and the Insurance Institute of America (IIA).

To become a certified marine broker, an individual must take six classes, including:

• A course in ocean marine insurance
• A course in inland marine insurance
• A course on the legal environment of insurance
• A course on the foundation of risk management, insurance, and professionalism

The remaining two classes consist of 19 insurance electives, including:

• Risk assessment
• Underwriting commercial property/liability
• Claim handling principles/practices
• Insurance operations

There are numerous online and offline resources that offer these courses, including IIA. The cost for the training varies depending on the resource you use. If you order course materials through IIA, the cost for the four primary courses is around $490.

To get certified, a marine broker must take and pass a two-hour AMIM examination. The examination includes six tests that cover the materials included in the six courses taken by the candidate. The marine broker must also take and pass the "Ethical Guidelines for Insurance Professionals" examination. There are no post-certification requirements to maintain an active certification, such as continuing education courses or annual fees.

Frequently asked questions