Understanding General Insurance Finance

This highly interactive training course provides a basic understanding of insurance finance which will help you interpret clients' accounts, appreciate the financial pressures within the insurance business model and improve your ability to identify and manage risks and opportunities.

CONTENT

Finance Fundamentals

•     Commercial cash flow and profit
•     Capital, assets and liabilities
•     Financial principles, conventions and rules
•     Financial statements

Insurance Fundamentals

•     The five distinguishing characteristics
•     Insurance cash flow and the main dependencies
•     Funded vs accrual accountings

The mechanics of premium

• Calculating written/earned and gross/net premium
• Unearned premium provisions
• Direct costs, management expenses and acquisitions costs

Claims the direct costs

• Claims notified: paid and outstanding
• Technical/case reserving
• Ultimate claims cost and incurred but not reported

Investment

• Purpose and type of investment
• Risk and return - asset and liability matching

Financial reporting

•     Building the technical account/profit & loss and the balance sheet
•     Interpreting the key performance ratios
•     Underwriting profit or return on capital?

Solvency II

•     Risk based capital adequacy
•     The balance sheet: where are the inherent risks?

FOR WHOM:

Insurance Officers, Compliance Officers, Marketing Managers, HR personal.

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.