Students considering a career in insurance would do well to look into marine underwriting, a fascinating specialty that calls for a variety of diverse skill sets and abilities.
A recent blog post by Sean M. Dalton, Head of Marine Underwriting for North America at Munich Re highlights the many ways prior education is applied in marine underwriting.
- Geography and History: Understanding climates, economies, cultures, histories, natural resources, trade, politics, conflicts and more, is at the core of what marine underwriters insure.
- Communication: written, verbal, and presentation skills, are of critical importance. This applies whether drafting business correspondence, preparing a quote/proposal, or servicing your business.
- Mathematics: Strong skills in math including finance, statistics, economics, algebra, and calculus all are important and useful in analyzing profitability, developing technical rates, and understanding trends and developments in results.
- Science: Fields including chemistry, physics, meteorology, and biology are all important to marine underwriters and brokers.
- Computer Sciences: Utilization of the latest IT capabilities and an understanding of how technology impacts the risks we insure are keys to success. CAT modelling and the application of predictive analytics are some specific examples where the power of technology is helping advance the business.
- Social Skills: The insurance industry is a “people” business and how we interact with others is of great value. From marketing, negotiation, problem solving, and networking, social and interpersonal skills are keys to a successful career.
For more information about marine insurance visit the website of the American Institute of Marine Underwriters
For other careers in insurance visit InsureMyPath
Third party abuse of assignment-of-benefits is having a negative impact on Florida’s homeowners insurers’ 2017 financial results, according to a recent S&P Global article.
An assignment of benefits occurs when a person with an insurance claim allows a third party to be paid directly by the insurance company. Usually this happens after a claim, when the insured assigns their benefits right to a contractor or whoever is making the repair the claim is meant to cover. A loophole in the Florida law invites abuse of the right and the ensuing litigation drives up costs.
S&P Global’s article showed how the loophole has dramatically increased costs at Florida’s Citizens Property Insurance Corp.
Hurricane Irma by itself made 2017 a challenging one for Florida’s Citizens: over $1 billion in net losses and loss adjustment expenses.
But increased litigation expenses (which show up in insurance statements as direct defense and cost containment expenses incurred (DCCE) – often referred to as allocated loss adjustment expenses) – those hurt a lot too. The ratio of homeowners DCCE incurred to direct premiums earned increased to 16.9% from 15.2% in 2016, the average such ratio for the first 13 years of Citizens’ existence was 2.9%. In other words, litigation costs are almost six times worse than they were just a couple of years ago.
Private insurers in Florida are also reporting the negative impact of litigated assignment-of-benefits claims. Universal Insurance Holdings, Florida’s largest private property insurer, reported that about 12% of its claims from Irma had some aspect of assignment of benefits to them.
So far, legislative reform of assignment-of-benefits abuse remains in limbo.
The March issue of I.I.I.’s Latest Studies digest is now available.
In this issue:
- Latest reports on drowsy and distracted drivers from AAA and Esurance
- J.D. Power’s Property Claims Satisfaction survey
- Jacobson Group’s insurance labor market study
- Casualty Actuarial Society’s auto loss cost trends report
And much more…..