Finance for Insurance Professionals Course

This course has two overriding aims: to improve understanding of the financial dynamics of insurance and to enable learners to ‘read’ the accounts of any company using 14 key financial ratios. Two distinct modules cover these two aims, and both are prefaced by an ‘Introduction to Accounts’ module which ensures that learning is built on solid foundations. Throughout the course there is an emphasis on the practical application of new-found knowledge, and exercises and group-work are used extensively to reinforce learning.

COURSE OUTLINE

Introduction to accounts

• Nature and purpose of accounts
• The main financial statements: balance sheet and profit and loss account
• Principles of accounting, and the implications for interpreting accounts

Finance of insurance

• The unique nature of insurance and specific balance sheet provisions
• Actuarial methods for loss reserving
• Financial year, accident year and underwriting year perspectives on data
• Insurance performance measures including loss ratios, operating profit and ROE

Interpreting company accounts

• Profitability, efficiency, liquidity and solvency ratios
• How analysts interpret ratios
• Characteristics of different industry

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.