This course has been developed for insurance underwriters who need a better understanding of the financial reporting of their business activities. Basic accounting principles are covered initially followed by the accounting for insurance activities.
 

CONTENT

The training day will include a mix of instructor presentation, group discussion and interactive exercises to reinforce the key learning points:

Basic Accounting Principles and Financial Statement Mechanics

• Cash flow statement
• Income statement
• Statement of financial position (balance sheet)
• Terminology
• Links and integration of the statements
• Accruals concept
• Simple statement construction exercise

Insurance Accounting; Accounting for Underwriting Business

• Terminology (GAAP vs Lloyd’s)
• Written premium
• Reinsurance premium
• Earned premium
• Written vs earned (reconciliation)
• Practical earnings exercise
• Losses/claims
• Practical issues

Investments and Other Topics

• Balance sheet investments
• Accounting for investment returns
• Investment strategy
• Other income statement expenses

Financial Assessment; KPIS and Industry Benchmarking

• Loss ratio, expense ratio, combined ratio
• Investment return
• Return on equity
• Other key ratios, calculation and interpretation

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.