We are using a real case to illustrate how the wrong management of insurance reserves can lead to the bankruptcy of a non-life insurer which was focusing on long-tail businesses.
Finally, we are also displaying what can go wrong for life insurers with real cases.
Based on real cases, this training is to help future insurance managers (or existing one) to understand the dangers which exist for insurers and what they should do to maintain the solvability of their businesses.
Prerequisites: Having passed the Certified Insurance Industry Fundamentals™ (CIIF™) and Certified Insurance Industry Professional™ (CIIP-I™) certification programs.
Target Group: All people who will manage (or already are) managing part of an insurer’s business. Employees from insurers and reinsurers (accounting, finance department, IT and all organizational functions) who want to better understand their industry.
Subjects Covered:
- What are the different insurance reserves which must be managed by the insurers for their non-life businesses?
- What are the differences between long and short tail businesses and why we need to understand these differences?
- What is the concept of “earning premiums”? And how should insurers earn them?
- What are the dangers with long tail businesses and why are insurers running these lines of business?
- What are the solvency requirements for insurers? What is the solvency margin?
- With regards to Life insurance, what are the largest risk that the insurers are facing? We use the example of the Japanese bubble and what happened to the life insurers when it busted.
- What about when insurers badly allocate their assets? We are using the real case of a French insurer which nearly got insolvent as a result of wrong bets.
- We are explaining how bond's yields work and how they could impact the solvency of an insurer.
