LOMA 308 — The Business of Insurance: Applying Financial Concepts

Overview

LOMA 308 — The Business of Insurance: Applying Financial Concepts presents basic economic, financial, and business concepts and practices related to insurance company management, operations, solvency and profitability. The course utilizes extensive examples and exercises that enable learners to understand and apply important financial concepts and principles in their own work environments.

Learning Outcomes

• Describe the basic types of financial products and identify the financial needs these products are designed to address
• Explain the steps in the control process and describe the important control mechanisms insurance companies use to measure, evaluate, and improve their operational performance
• Describe the major categories of life insurer investments and explain how insurers use the required rate of return, the risk-free rate of return, and the risk premium to evaluate these investments
• Describe how insurers determine the values for a product’s cost of benefits, operating expenses, and investment earnings and how they evaluate product performance
• Describe how insurers use cost-benefit analysis, rightsizing, outsourcing, remote work arrangements, and information technology to manage general and administrative expenses
• Explain how insurers use information technology to manage and improve the customer experience and key business processes
• Perform present value calculations, explain how the present value of an annuity is calculated, and describe insurer applications of present value
• Describe the ratio-based systems used by regulators and rating agencies to monitor and evaluate insurance company solvency and profitability

Topics

• The basic types of financial products and the financial needs these products are designed to address
• The steps in the control process and the important control mechanisms insurance companies use to measure, evaluate, and improve their operational performance
• The major categories of life insurer investments and how insurers use the required rate of return, the risk-free rate of return, and the risk premium to evaluate these investments
• How insurers determine the values for a product's cost of benefits, operating expenses, and investment earnings and how they evaluate product performance
• How insurers use cost-benefit analysis, rightsizing, outsourcing, remote work arrangements, and information technology to manage general and administrative expenses
• How insurers use information technology to manage and improve the customer experience and key business processes
• Present value calculations; how the present value of an annuity is calculated, and describe insurer applications of present value
• Ratio-based systems used by regulators and rating agencies to monitor and evaluate insurance company solvency and profitability

Module 1: The Economy

The Economy

Measuring Economic Performance

The Business Cycle

How the Economy Affects Financial Institutions

Financial Institutions in the Economy

Needs Covered by Financial Products and Services

Changes in Price Levels

Fiscal Policies

Monetary Policies

Module 2: The Insurance Industry

Insurance Company Structure and Management

Insurance Company Structure

Managing Insurance Business

Managing Company Solvency & Profitability

Basic Risk Management Concepts

Managing Company Solvency

Managing Company Profitability

Managing Risks

Managing Enterprise Risks

Achieving Operational Efficiency

Insurance Company Expenses

Managing Expenses

Managing Sales Commissions

Improving Operational Efficiency

Information Management

Information Technology

Information Management Systems

Business Process Management Systems

Data Analytics

Data Security

Module 3: Financial Concepts

The Time Value of Money

Financial Reports and Plans

Financial Reports

Financial Plans

Collecting, Analyzing, and Reporting Financial Information

Using Sample Data

Sampling Methods

Avoiding Sampling Bias

Data Analysis/Ratios

Presenting Data Visually/Charts/Other

Avoiding Deceptive Uses of Visual Presentations

LOMA’s popular online interactive courses teach important industry concepts through an engaging, highly interactive, multi-media approach that often includes integrated video, audio and scenario-based learning. Online interactive courses are designation courses with integrated exams—the modularized examinations are built right into the course as part of the learning experience. No separate exam enrollment required!

Integrated Exams

Online interactive courses are non-proctored designation courses—the modularized examinations are built right into the course as part of the learning experience. No separate exam enrollment required!

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