Risk Management for Insurance Companies

This course examines the demographic changes and recent calamities such as Hurricanes Katrina and Rita, and the avian flu, that have forced insurance companies to focus not only on what products they offer but how to improve their asset and liability management, along with their risk management processes and systems. Focus is on the insurance sector and participants learn the process by which insurance companies identify measure, monitor and control their risks.

27-Oct-2008 -- 28-Oct-2008New YorkUSD$2375
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Mon Tue Level: Basic
CPE Credits: 14

Insurance Company Risk Managers, Finance Risk Professionals, Auditors
No advance preparation required.
Students will be able to:
  • Identify key regulatory changes affecting the insurance sector
  • Evaluate recent trends in natural disasters and terrorism and their effect on insurance companies
  • Identify key products in insurance companies that have embedded derivatives
  • Identify traditional derivatives being used by insurance companies to hedge risks
  • Identify and apply mechanics of insurance specific derivatives
A basic understanding of the Insurance Industry
  • Risk Management Suite
  • Derivatives in Energy Markets
    • Day 1

    Changes in regulatory environment

    • Changing national and state regulatory regime
    • Influence of Sarbanes Oxley
    • Banks Basel II compliance requirements' influence on insurance companies

    Lessons Learned

    • Effect of terrorism globally
    • Influence of natural disasters
    • Impact of litigation

    Risk Management at Insurance Companies

    • Compliance vs. risk based
    • Key risks in insurance companies
    • Risk management process

    Day 2

    Insurance Products with Embedded Derivatives

    • Annuities
    • Life policy riders

    Traditional Financial Derivatives used by Insurance Companies

    • Assets and liabilities that need to be hedged
    • Insurance companies use of: forwards, swaps, futures, options

    Resurgence of Insurance Related Derivatives

    • Property catastrophe bonds
    • Insurance risk swaps
    • Securities funding life insurance reserves
    • Industry Loss Warranties (ILWs)

    Future Outlook for Insurance Companies

    • Influence of regulation
    • Changing risk management practices
    • New product trends

    Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

    Lunch included for all students taking day classes.