The drivers of value creation in the insurance industry

Anyone wanting to better understand how the (re-)insurance industry works from a financial perspective.

Seats are limited to allow for active exchange amongst participants. Please only register if you can make yourself available for the full duration of the course.

After having attended this course, you are well prepared to follow the "Insurance Management Simulation Course".

• Explain what value creation is and how it can be measured
• Explore the 10 fundamental business and financial performance drivers of insurance companies
• Examine the link between underwriting decisions, risk and capital requirements
• List and compare the alternative methods of managing risk
• Demonstrate how strategic and operational decisions affect the way investors value an insurance company

No financial knowledge is assumed, and all necessary concepts are explained from first principles. Since the course covers a lot of ground and each concept builds on the previous one, participants need to be focused to ensure they get the most out of the course. With the registration for this course, the participants agree to sign up for all four sessions.

We use Microsoft Excel throughout to illustrate the principles and build the models. Participants do not need to be advanced users of Excel to cope with what is required as only a basic knowledge is required. Any financial functions that are used on the course will be explained.

Onboarding sessions (choose one)
Monday, 26 September 2022, 09:00 – 10:00 CEST or
Tuesday, 27 September 2022, 09:00 – 10:00 CEST

Training sessions
Tuesday, 4 October 2022, 08:30 – 12:30 CEST
Wednesday, 5 October 2022, 08:30 – 12:30 CEST
Thursday, 6 October 2022, 08:30 – 12:30 CEST
Friday, 7 October 2022, 08:30 – 12:30 CEST

EMEA and Asia friendly time zone

The event may be photographed, videotaped, filmed and /or digitally recorded. You consent to Swiss Re's use, free of charge, of any memorialization of the event in which you may appear for any Swiss Re publication or promotional purpose.

Monday, 26 September 2022, 09:00 – 10:00 CEST
or
Tuesday, 27 September 2022, 09:00 – 10:00 CEST

Day one

• Determining investor expectations
• The major reasons why insurance companies hold capital
• Calculating the cost of capital
• Deriving the impact of insurance decisions on financial performance
• Calculating ROE

Day two

• Measuring value creation using economic value
• Constructing a value creation driver tree
• Exploring the sensitivity of value creation to changes in key drivers e.g. combined ratio and solvency
• Assessing the impact of pricing decisions and growth strategies on performance

Day three

• Understanding risk determinants and the effect of setting different risk tolerance levels
• Overview of market risk, underwriting risk, credit risk and operational risk
• Linking risk factors and capital requirements
• Calculating optimal levels of capital to hold to balance solvency and performance

Day four

• Key reinsurance products – quota share and excess of loss contracts
• How reinsurance affects risk and capital
• The three key roles of reinsurance
• Comparing reinsurance with other capital management strategies
• Linking value drivers, value creation and the share price