M92 Insurance Business and Finance

At the end of this training program, candidates should be able to demonstrate an understanding of the operation of insurance organisations in business and financial terms.

Target Audience:

Candidate who has knowledge of the fundamental principles of insurance as covered in IF1 Insurance, legal and regulatory or equivalent examinations.

Objectives:

At the end of this unit, candidates should be able to:

  • Understand the structure of the insurance industry.
  • Understand the management of insurance businesses.
  • Understand the main aspects of corporate governance.
  • Understand the role of the various functions within insurance organisations.
  • Understand accounting principles and practices and their application.
  • Understand accounting standards and insurance company accounts.
  • Analyse businesses using financial ratios.
  • Understand the financial strength of insurance companies.

Assessment Strategy:

Assessment Strategy:

  • Pre and Post training test to measure knowledge and learning levels.
  • Engage trainees in exercises and group activities.
  • Evaluation form to be filled by trainees.

Method of assessment:

Mixed assessment consisting of two components, both of which must be passed. One component is a coursework assignment and one is a multiple choice question (MCQ) examination. The details are:

  • An online coursework assignment using RevisionMate consisting of 10 questions which sequentially follow the learning outcomes. This must be successfully completed within 6 months of enrolment; and
  • An MCQ exam consisting of 25 MCQs and 5 case studies followed by 5 MCQs each. 90 minutes are allowed for this exam. This exam must be successfully passed within 18 months of enrolment.

Modula 1: Understand the structure of the insurance industry
1.1 Explain the different types of insurance company, including proprietary, mutual, captive, takaful and reinsurance.
1.2 Describe the Lloyd’s and London Market.
1.3 Describe the global perspective of the insurance market.
1.4 Explain the different types of stakeholder and their interests.
1.5 Explain the different distribution channels for insurance business.
1.6 Discuss the reasons for company growth, including mergers and acquisitions.
1.7 Discuss the reasons for using external service providers, including benefits and drawbacks.
Modula 2: Understand the management of insurance businesses
2.1 Describe the role and responsibilities of the board of directors and other senior executives.
2.2 Describe the key roles and responsibilities of managers, supervisors and non-managerial staff.
2.3 Explain the importance of business planning, performance monitoring bugetary planning and control and decision making.
2.4 Explain the importance and use of management information and management reporting.
Modula 3: Understand the main aspects of corporate governance
3.1 Describe the corporate governance framework and the incorporation of businesses.
3.2 Describe the statutory reporting requirements.
3.3 Describe how risk can be managed within the corporate governance framework.
3.4 Explain the importance of accurate record keeping and reporting.
3.5 Explain the importance of the management and protection of confidential data.
Modula 4: Understand the role of the various functions within insurance organisations
4.1 Explain the role and significance of insurance related functions within insurance organisations, including:

  • Underwriting, including delegated authority.
  • Claims.
  • Risk management.
  • Compliance.
  • Sales and marketing/customer service.
  • Investment.
  • Finance and treasury.
  • Strategic planning.

4.2 Describe the role of other functions within insurance organisations, including:

  • Internal audit.
  • Legal and company secretarial.
  • IT and data management.
  • Facilities management.
  • HR/training and competence.

Modula 5: Understand accounting principles and practices and their application
5.1 Explain the purpose and function of financial accounting.
5.2 Distinguish between financial and management accounting.
5.3 Describe the users of financial information and their information requirements.
5.4 Apply the basic financial concepts and the accounting equation.
5.5 Describe accounting for receipts and payments.
5.6 Interpret a balance sheet, a profit and loss account and a cash flow statement.
5.7 Explain the principles of management accounting.
5.8 Interpret management accounting information.
Modula 6: Understand accounting standards and insurance company accounts
6.1 Outline the main accounting standards that affect insurance company accounts.
6.2 Explain the importance of accurate claims reserving.
6.3 Describe insurance company reserving method.
Modula 7: Analyse businesses using financial ratios
7.1 Discuss the general uses and benefits of financial ratios.
7.2 Interpret general accounts through the use of financial ratios including:

  • Profitability.
  • Productivity.
  • Liquidity.
  • Activity, including turnover.
  • Gearing.

7.3 Interpret insurance company accounts through the use of financial ratios, including:

  • Solvency.
  • Liquidity.
  • Profitability, including return on equity, gearing, combined ratio, commission ratio.
  • Outstanding claims.

Modula 8: Understand the financial strength of insurance companies
8.1 Explain the role of rating agencies and the rating process.
8.2 Explain the regulatory solvency requirements and how the financial strength of insurance companies is analysed.

Experience Level:
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Code: INS1063
Language: English
Duration: 5 Days