E-Learning Course: Asset Liability Management for Insurance companies (Library of 29 courses)

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Training
KESDEE Inc
ID: 2989115

The program has been designed to discuss concepts and case studies on Asset Liability Management for the insurance industry. The course discusses and reviews ALM concepts such as cash flows and risks of insurance products (assets and liabilities), applicable regulatory and capital guidelines, actual case studies and current trends and developments. The course has been designed to be conceptually sound and practical.

Learning Objectives:

Benchmark your institution by examining ALM success factors
Understand key performance indicators for ALM and Risk Management
Gain practical insights into how leading institutions are utilizing ALM for value creation
Examine how cash flows and risks of insurance products affect ALM
Discuss the global best practices in ALM followed by insurance companies worldwide
Examine how to provide optimal oversight of the Risk Management function
Study how to enhance the effectiveness of ALM Committees

Target Audience:

Every professional involved in the global financial services industry (as a provider, user, regulator or advisor of product/services, marketplace/exchange) would benefit from KESDEE’s innovative solutions.

Supervisory Agencies
Central Banks
Financial Institutions
Commercial Banks
Investment Banks
Housing Societies/Thrifts
Mutual Funds
Brokerage Houses
Stock Exchanges
Derivatives Exchanges
Insurance Companies
Multinational Corporations
Accountancy Firms
Consultancy Firms
Law Firms
Rating Agencies
Multi-lateral Financial Institutions
Others

Course Content

1 Scope of ALM

Topics covered include:

The concept of asset liability management
The various types of market risks and their implications on the institution
The short term and the long term risks

2 Overview of ALM in Insurance Companies

Topics covered include:

The concept of asset liability management in insurance companies
The applications of asset liability management
The different types of risks in insurance
The overall approach for managing risks

3 A 9-part Framework of ALM

Topics covered include:

The purpose and significance of ALM framework
In detail the nine-components of ALM framework
The role, relevance and application of the framework

4 Strategies for ALM

Topics covered include:

The various types of strategies in ALM process
The difference between the various strategies that can be used on the basis of parameters such as speed, flexibility, costs and risk involved

5 Overview of Life and Property and Casualty Industry

Topics covered include:

The different types of insurance companies
The players in the insurance market place
The functions of insurance
The background and the type of life and property and casualty insurance products
The global landscape and thhe changing face of the insurance industry

6 Annuities

Topics covered include:

The concept of annuities
The importance of annuities
The different types of annuities
The concept, features and applications of Equity Indexed Annuities
The indexing methodologies employed

7 Actuarial Principles

Topics covered include:

The role played by an actuary in the insurance industry and the nature of actuarial practice
The distinction between the principles and standards used in the actuarial profession
The principles of actuarial science based on probability and statistics, behavioral economics, actuarial models and financial security systems

8 Reinsurance

Topics covered include:

The concept of reinsurance and the need for it
The different types and methods of reinsurance
The alternative risk transfer mechanisms in reinsurance
The basic functions of reinsurance

9 Insurance- linked Securitization

Topics covered include:

The process of insurance linked securitization
The concept of insurance loss indices
The various securitization instruments
The advantages and disadvantages of insurance linked securitization
The future of insurance link securitization

10 Yield Curve Analysis

Topics covered include:

The concept of yield curve and its types
The various theories under yield curve analysis
The types of interest rates and its computation
The applications of yield curve analysis

11 Interest Rate Gap I

Topics covered include:

The concept of gap analysis
The method of preparation of gap report
The process of calculating gap, cumulative gap and related measures
The critical factors that have to be considered while slotting balance sheet items in the gap report
How to identify the key positions in gap report

12 Interest Rate Gap II

Topics covered include:

The computation of income statement impact of gap
The process of setting up gap limits
The various restructuring strategies to be followed if gap is not within limits
The strengths and limitations of gap analysis

13 Simulation and Scenario Analysis - I

Topics covered include:

The concept of simulation
The process of measuring risk positions or simulating various accounts and setting risk limits
The distinction between various methods of choosing scenarios for simulation limits
The ways of presenting the outcomes of simulation
The various criteria used for selecting an appropriate business strategy
How to avoid analysis paralysis
The components and issues involved in simulation modeling
The concept of stress testing and backtesting

14 Simulation and Scenario Analysis - II

Topics covered include:

The modeling of non-specific maturity items and the factors that affect these items both from the assets and liabilities perspectives
The techniques for identifying various factors that affect account balances and for analyzing rate sensitivity of core deposit
The need to align the business plan with various rate scenarios
The process and steps involved in monte carlo simulation
The advantages and disadvantages of monte carlo simulation

15 Duration I

Topics covered include:

The concept of duration and modified duration
The application of formulae for duration and modified duration
The computation of different types of bonds
The relationship between duration, yield, coupon, maturity of a bond and thereby comprehend the properties of duration

16 Duration II

Topics covered include:

The computation of duration of perpetual bonds, embedded options and floaters
The computation of duration of a portfolio
The application of the concept of duration for off-balance sheet items
The effects of approximation involved while using modified duration
The difference between gap and duration
The strategies of risk management

17 Duration III

Topics covered include:

The calculation of duration of equity
The designing of hedging strategies to manage the interest rate sensitivity of the balance sheet
The computation of duration of complex items by using the concept of portfolio replication
The derivation of the zero coupon yield curve using the present value of cash flows

18 Convexity

Topics covered include:

The concept of convexity and its properties
The calculation of convexity of different types of bonds
The computation of convexity of a portfolio
The impact of price change on convexity
The concept of positive and negative convexity

19 Basis Point Value

Topics covered include:

The concept of basis point value
The change in the value of the portfolio due to one basis point change in the interest rates
The relationship between BPV, duration and modified duration
The calculation of BPV of on-balance sheet and off-balance sheet items
The computation of BPV of a portfolio
The advantages of BPV as a risk control technique

20 Value at Risk - I

Topics covered include:

The concept of Value at Risk
The concept of trading and banking book
The various methodologies of estimating VaR and their strengths and weaknesses
The comparison between the strength and limitation of VaR

21 Value at Risk - II

Topics covered include:

The computation of VaR of foreign exchange spot, foreign exchange options positions, common shares/stocks, fixed income portfolio
The various applications of VaR

22 Application of Analytical Techniques

Topics covered include:

The framework of the analytical techniques - gap, duration, simulation and value at risk
The concept and assumption under each technique
The comparison and analysis of each of the techniques across various parameters
The application of techniques with real life case studies

23 AL Organization

Topics covered include:

The various elements of AL Organization viz., the ALCO, the AL sub-committee, and the ALCO support group
The scope of ALCO
The key issues of centralization and decentralization

24 ALCO Meetings

Topics covered include:

The operational aspects of ALCO meetings
The data requirements of ALCO meetings

25 ALM Policies and Procedures

This course discusses about ALM policies and procedures. It helps the user understand:

The ALM policy and the procedure manual
The contents of the ALCO reports

26 Audit of ALM

Topics covered include:

The significance and concept of audit of ALM function
The overall approach and scope for the function of ALM audit
In details the applications of the audit process
The various types of AL models and examine different scenarios and assumptions involved in the audit

27 Regulations in Insurance Industry

Topics covered include:

The growing relevance of regulation in the insurance industry
The various measures adopted by insurance regulators
The capital regulation initiatives undertaken by prominent insurance supervisors
The future developments in insurance regulations

28 Software Applications

Topics covered include:

The areas of software application in the insurance industry
The various considerations for choosing a software package
The working of various software packages for the insurance industry

29 Case Study - Confederation Life Insurance

This course discusses the case study of Confederation Life Insurance Company - what actually happened and the lessons learnt

Learning Objectives:

Target Audience:

Course Content

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