Marine Insurance Underwriter: Steps To Start Your Career

Marine insurance underwriters provide insurance coverage for boats, ships, and other naval assets. They help vessel owners choose suitable insurance, taking into account factors such as the value of the vessel and freight, whether it will operate inland or at sea, and the laws and regulations of the countries where the vessel might travel. To become a marine insurance underwriter, you'll typically need a bachelor's degree in a relevant field such as business, finance, economics, accounting, or statistics, as well as excellent analytical, communication, and organisational skills. Some employers may also accept an associate degree or previous job experience if you have a proven track record in the insurance industry.

Qualifications and skills

The qualifications for a marine insurance underwriter vary depending on the employer. A bachelor's degree in business, finance, economics, accounting, statistics, or a related subject is often required. Some companies may accept an associate degree or previous job experience if you have a proven track record in the insurance industry.

In addition to a degree, there are specific skills that are essential for a career in marine insurance underwriting. These include:

• Excellent analytical skills
• Strong mathematical skills, particularly in probability
• Communication skills
• Organisational skills
• Interpersonal skills
• Problem-solving abilities
• A commitment to professional ethics
• A collaborative mindset

To boost your career prospects, you may also want to pursue professional certification, such as becoming an associate in marine insurance management (AMIM).

After gaining a few years of work experience, you may want to enhance your qualifications further by earning a Master of Business Administration (MBA) or a professional certification in insurance underwriting.

Job responsibilities

Marine insurance underwriters are responsible for providing insurance coverage for boats, ships, and other naval assets. They help vessel owners choose suitable insurance policies, taking into account various factors such as vessel value, freight cost, and the laws of the regions in which the vessel operates.

Daily duties for a marine insurance underwriter include weighing variables such as the value of freight, the price of the boat, whether it will operate inland or at sea, and the laws and regulations of the countries where the vessel might travel. They also obtain and organise pre-qualification information. Marine underwriters often manage a book of business, aiming for profitability, and they maintain relationships with agencies.

In addition, marine insurance underwriters may be responsible for mentoring new underwriters and conducting risk analysis to recommend appropriate premiums. They need to be adept at developing sales plans that increase agency penetration and profitability. They must also be skilled at compiling risk reports and analysing loss runs for risk acceptance and pricing.

Marine underwriters are also responsible for gathering and researching data to evaluate the acceptability of business and institutional risk. They use their analytical skills to determine whether to accept or reject the risk based on the information gathered. This involves a detailed understanding of maritime rules and regulations, as well as the ability to solve complex problems.

Furthermore, marine insurance underwriters need to have strong communication and organisational skills, as well as knowledge of probability mathematics. They must be able to establish and maintain healthy working relationships with customers, agents, brokers, and other stakeholders.

Salary and career outlook

The salary for a marine insurance underwriter can vary depending on experience and location. In the United States, the average salary for this position is $77,871 per year, with salaries ranging from $53,000 to $113,000 per year. However, some sources give a higher average of $76,325 per year, with additional pay of $60,362 per year, bringing the total to $136,687 per year. The highest salary for this role in the US can be as much as $189,047 per year.

The salary for a senior marine insurance underwriter can be even higher, with some companies offering salaries between $91,400 and $152,300 per year.

To become a marine insurance underwriter, it typically takes 4-6 years. This includes obtaining a Bachelor's degree in a relevant field such as business, finance, or economics, and gaining work experience in risk assessment, underwriting policies, and understanding maritime regulations. Some companies may also accept candidates with an associate degree or previous job experience in the insurance industry.

While employment of insurance underwriters is projected to decline by 4% from 2023 to 2033, there will still be a need for underwriters in specific fields such as marine insurance. Additionally, there will be a need for underwriters to review and update the criteria for automation in the insurance industry.

Training and internships

The qualifications for a marine insurance underwriter vary depending on the employer. Some insurance firms seek candidates with a bachelor's degree in business, accounting, statistics, finance, economics, or a related subject. An accounting or finance degree can allow you to develop strong math skills and analytical reasoning abilities, as well as an understanding of business procedures and practices. During your junior year of high school, you can start exploring these bachelor's degree programs.

Other companies may accept an associate degree or previous job experience if you have a proven track record in the insurance industry. In addition to a degree, most insurance underwriters need to complete an employer-specific on-the-job training program lasting a few months. During this training period, new hires are paired with a senior underwriter or analyst who supervises their work and provides guidance. This is a valuable opportunity to learn the basic tools of the job and receive feedback.

Although not always required by employers, earning an insurance underwriter certification may open the doors to higher-level job positions. Various organizations administer certification programs, and your employer may have specific preferences. For example, if you have at least two years of work experience, you may qualify for the Chartered Property and Casualty Underwriter (CPCU) certification. Other options include the Associate in Commercial Underwriting (AU) and the Associate in Insurance (AINS) designations.

You can also pursue professional certification such as becoming an associate in marine insurance management (AMIM), which can help boost your career prospects.

Certifications

Professional Certifications:

• Associate in Marine Insurance Management (AMIM): This certification can boost your career prospects in marine insurance underwriting. It demonstrates a specialised understanding of marine insurance and can be advantageous when applying for marine-specific roles.
• Chartered Property and Casualty Underwriter (CPCU): Offered by The Institutes, this certification is for those with at least two years of work experience in the industry. It involves completing online courses and virtual exams, covering a comprehensive range of topics in property and casualty insurance.
• Associate in Commercial Underwriting (AU) and Associate in Insurance (AINS): These certifications, also offered by The Institutes, provide a strong foundation in commercial underwriting and general insurance knowledge, respectively.
• Life Underwriter Training Council Fellow (LUTCF): This certification is offered by the National Association of Insurance and Financial Advisors, focusing on life insurance and financial planning.
• Chartered Life Underwriter (CLU): The American College of Financial Services provides this certification, which is likely to be well-regarded by employers in the life insurance sector.

Educational Qualifications:

• Bachelor's Degree: A bachelor's degree in a relevant field is typically required for marine insurance underwriters. Common degrees include business, finance, economics, accounting, or statistics. These degrees provide a solid foundation in analytical and mathematical skills, which are essential for underwriting.
• Master of Business Administration (MBA): While not necessary for entry-level positions, aspiring to senior-level roles may benefit from an MBA after gaining initial work experience. An MBA can enhance your business acumen and leadership skills.

Other Considerations:

• On-the-Job Training: Most employers will provide on-the-job training for new hires, which can last a few months. This training is crucial for learning the practical aspects of the job and understanding the company's specific processes and software.
• Specialist Knowledge: Marine insurance underwriters need a strong understanding of maritime rules and regulations, as well as knowledge of probability mathematics. This specialist knowledge is often gained through work experience and on-the-job training.
• Continuous Learning: Stay up to date with industry developments and best practices by engaging in continuous learning. This can include attending workshops, seminars, and webinars offered by industry associations, such as the American Institute of Marine Underwriters (AIMU).

Frequently asked questions