Dive into statutory accounting principles as you compare SAP to GAAP and understand components of the NAIC annual statement. Develop skills to examine a property-casualty insurer's Annual Statement, NAIC Annual Statement, and explain how the financial strength is evaluated. Learn to maximize insurer investment income, evaluate portfolios, and breakdown capital requirements.
Course Information
Course Details
Insurance Accounting Fundamentals
Explore the many facets of statutory accounting including deciphering insurer financial statements, leveraging insurer financial data, maximizing insurer investment income, and explaining and applying capital requirements.
Course Level
(New)
Language(s)
English
Average Completion Time
4-6 Hours
Topics
Examine GAAP and SAP components, uses, and differences
Understand the elements of the NAIC Annual Statement
Evaluate a P&C insurer’s Annual Statement including capacity, liquidity, and profitability ratios
Explain how A.M. Best evaluates the financial strength of insurers
Implement strategies to manage an investment portfolios
Analyze asset and investment restrictions placed on insurers
Communicate how the NAIC’s risk-based capital system operates
Apply the concept of economic capital to insurers
Insurance Accounting Fundamentals
Course Features:
Interactive modules and videos from experienced practitioners in the field
On-demand access 24/7
Modules you can complete in as little as 25 minutes, complete full course in 5 hours
Virtual, 25-question final assessment with a 45-minute time limit and unlimited retakes included in your course purchase
Upon successful completion, earn a digital badge to display in your email signature and social media profiles to showcase your expertise.
Earn 5 CPE credits
Learning Objectives:
After completing this course, you should be able to:
Distinguish among the basic components of insurer financial statements.
Leverage financial data to determine an insurer’s fiscal health.
Evaluate how insurers maximize their investment income.
Evaluate an insurer’s capital requirements.
Describe the valuation and recognition concepts underlying insurer statutory accounting principles (SAP).
Distinguish between statutory accounting principles (SAP) and generally accepted accounting principles (GAAP).
Evaluate the main components of an insurer's National Association of Insurance Commissioners’ (NAIC) Annual Statement and the information those components contain.
Evaluate a property-casualty insurer's Annual Statement by calculating capacity ratios.
Evaluate a property-casualty insurer's NAIC Annual Statement by calculating liquidity and profitability ratios.
Evaluate the significance of each ratio of the NAIC's Insurance Regulatory Information System in terms of insurer solvency.
Determine how A.M. Best Company evaluates the financial strength and capacity of property-casualty insurers.
Evaluate the trade-off between risk and return and the level of diversification in an insurance company investment portfolio.
Evaluate an insurer’s bond portfolio in terms of its immunization from interest rate risk.
Analyze various asset and investment restrictions placed on insurers.
Explain how the NAIC risk-based capital system operates.
Explain how the NAIC Risk Management and Own Risk and Solvency Assessment helps an insurer manage its risks.
Apply the concept of economic capital to insurers.
