A study of the marine cargo underwriting and claims in Singapore

• Main Authors: Chai, Richard, Chan, Siew Hwee, Lim, Geok Keow
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/51200
• Institution: Nanyang Technological University

This study aims to give the readers an insight into the operations of the marine cargo insurance market in Singapore. A brief description of the history, functions of insurance and the fundamentals of marine insurance will be given. The role of marine cargo insurance in international trade and the major players will also be touched on. We will examine the underwriting practices adopted by the local marine cargo underwriters. Underwriting factors are discussed in detail. Measures taken to protect the underwriters’ interest are included. Underwriting a marine cargo risk is not without difficulties. Hence, to make our discussion of the topic complete, a section is devoted to dealing with the problems faced by local underwriters. Underwriting and claims go hand in hand, one cannot be done without the other. Efficient claims handling and measures that a cargo owner can take to safeguard his interests and to ensure the smooth processing of a claim will be reviewed. Next, we shall look at how the marine claim departments handle a claim right from receiving a claim notice through the adjustment of it to the recovery from any wrongful third party. After reading through the many interesting aspects of marine cargo insurance, the readers must be eager to know the future development in the business. We attempt to forecast the future by examining four developments which we think are likely to materialise. The first deals with strategies which marine cargo insurers can use to retain insurance of goods coming into and out of Singapore. Increasing the profitability of the cargo portfolio through reinsurance is elaborated on. The possibility of developing Singapore into a regional ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library insurance and reinsurance center is considered under the third development. Finally, we ponder on the implications of Information Technology on the insurance industry as a whole and the marine insurance industry in particular.