Insurance Finance Basics

Course Introduction

Insurance is a notorious silo industry, prompting expert but all too narrow knowledge and skill development. There is also a reluctance attached to “finance” and often this results in a vital business competence being overlooked until (too) late in a career.

Rather, the earlier in a career that development begins, the better. This live on-line interactive insurance webinar gains an insight into the insurance industry characteristics, how money moves through an insurance company, and how financial info presented. It is also a springboard to encourage further personal development in what is now becoming a career enabler.

This live on-line interactive insurance webinar is delivered as two 50-minute sessions, with a 10 min break midway.

Course Objectives

At the end of the webinar delegates will be able to:

• Summarise the economic characteristics of insurance: what it makes it unique.
• Describe the insurance cash flow cycle.
• Explain the basic financial concepts which underpin insurance finance.
• Explore the treatment of the elements the produce an insurer’s profit
• Explain the purpose and structure of key financial statements, and the key ratios they reveal

Course Content

• Business finance basics
• The financial characteristics of insurance and cashflow cycle
• Recognising revenue: the financial treatment of premium
• Estimating claims: ultimate claims cost, claims incurred, case reserves and IBNR
• Factoring in reinsurance
• Acquisition costs and management expenses
• The role of investment income
• Interpreting the technical account and the balance sheet
• Three key ratios

Approach

This is a simple and straightforward introduction. It is participative, interactive and over 2 hours dispels many of the myths associated with “understanding the numbers”.