Course objectives
The accounts prepared by an insurance company will often look very different to a typical set of company accounts and this can be very confusing and create a barrier to full understanding and engagement. This course is designed to help lawyers who have insurance company clients to better understand the key financial issues facing the insurer and how these issues are reported in the annual accounts.
Typical content
- Reporting profit and losses
- When to recognise and value premium income
- Claims expenses including the expense of claims incurred but not reported (IBNR) and incurred but not enough reserved (IBNER)
- Treatment of acquisition costs such as commissions to brokers
- Payment and receipts for reinsurance
- Balance sheet issues
- Valuation of claims reserves including issues for life insurers and all policies that have long tail risks – the new approach required by IFRS 17 will be covered
- Valuation of investment assets and the impact on solvency and regulatory reporting obligations
- Other matters
- Lloyds syndicates and the use of reinsurance to close
- Key financial performance indicators for insurers
- Key financial terms explained
Typical practical work and case studies
- Case study review of insurance company financial statements to identify and calculate key financial performance indicators
- Practical examples to illustrate issues such as asset valuations (at fair value), liability technical provisions and revenue recognition
Duration and guideline fee
3 hours – £850
Recommended maximum group size – 30
Potts Financial Training 