Financial Management for Non-Financial Insurance Executives
Day 1
Session foundation/overview
Introduction to accounting concepts
- Financial and statutory financial reporting — how they differ
- An analyst’s overview: accounting equation, balance sheet, income and cash flow statements, cash and accrual and supporting data
- What statements are intended to show…and not show
- Assumptions and principles: cost, revenue, matching, conservatism, materiality
- Statutory accounting principles (SAP) and generally accepted accounting principles (GAAP)
Understand, value and analyze key components of financial statements
- Balance sheet, income statement, cash flow
- Accounting for and analyzing premiums, losses and investments
- Evaluating underwriting results, accident and calendar year
Day 2
Reinsurance
- Overview: understanding the business; characteristics and terms
- Interpretations of reinsurance: good faith; “follow the fortunes”
- Purpose, types, forms and uses of reinsurance
- The impact of reinsurance on financial statements
Financial analysis techniques
- Manage concerns of the financial analyst and determine how those insights can be applied
- Return-on-investment measures that drive value identity
- Evaluate financial indicators, ratios and metrics specific to the insurance industry
- Determine sustainable growth measures for product lines and your organization
- Understand how you might use capital allocation tools
Day 3
Claims analysis/reserves
- The role of the actuary for your company
- Demonstration: the techniques used to set and analyze reserves
- How to read, understand and use your "Schedule P"
Profit center management for insurance company profitability
- Using management accounting techniques for decision making
- Apply costing techniques to insurance operations
- Taking a contribution approach to your analysis
- Analyzing product line profitability
- Pricing and utilization considerations
- Profit planning and budgeting
- Developing a flexible budget
- Measuring against the plan
- Analyzing results
- Using relevant costs for decision making
- Assessing service area costs, charges and profit
Schedule
Evening before course — 5:30 – 7:30 p.m. Optional dinner for those arriving early
Day 1 — 8:30 a.m. – 4:30 p.m. Session
Day 2 — 8:00 a.m. – 4:30 p.m. Session
Day 3 — 8:00 a.m. – 2:30 p.m. Session
The University of Wisconsin–Madison, as a member of the University Continuing Education Association (UCEA), authorizes this course for 2.0 Continuing Education Units (CEUs) or 20 hours.
gsrenaski@exed.wisc.edu