Insurance Principles Training Course

Participants can apply core contract principles to interpret insurance policy obligations and coverage.

• Insurance contract formation: offer, acceptance, consideration and legal capacity
• Utmost good faith duties before placement and at renewal
• Warranties, conditions precedent and exclusions determine policy response
• Proximate cause analysis separates insured perils from intervening causes
• Subrogation rights prevent insured parties recovering twice for one loss
• Contribution coordinates recoveries where multiple policies cover identical interests
• Policy schedules, wordings, endorsements and certificates evidence contractual terms

Participants can distinguish major insurance product classes and assess their principal coverage features.

• Property covers physical damage, business interruption and consequential loss
• Liability insurance responds to legal liability for third-party injury
• Motor policies combine own-damage, third-party and compulsory cover
• Marine insurance addresses hull, cargo, transit and general average
• Life assurance pricing reflects mortality, term and benefit structure
• Health and accident products use limits, deductibles and provider networks
• Comparing named-peril and all-risks wordings identifies scope differences

Participants can assess underwriting information, select appropriate terms and document risk decisions.

• Proposal forms capture material facts, exposures and prior losses
• Underwriting triage uses risk appetite, authority limits and referral rules
• Rating factors convert exposure data into technical premium indications
• Experience rating adjusts premiums using credible historic loss performance
• Deductibles, limits and coinsurance shape retained and transferred risk
• Accumulation control identifies correlated exposures within catastrophe-prone portfolios
• Underwriting files document rationale, evidence and terms offered

Participants can explain premium construction, reserves and core measures of insurance profitability.

• Premium components: expected claims, expenses, reinsurance cost, profit and taxes
• Loss ratio measures claims cost against earned premium
• Expense and combined ratios assess underwriting performance
• IBNR estimates recognise claims incurred but not yet reported
• Case reserves reflect current estimates for reported claims liabilities
• Unearned premium reserve matches written premium to unexpired risk
• Rate adequacy reviews compare technical price with expected loss costs

Participants can assess a claims file from first notification through coverage decision and settlement.

• First notification of loss captures facts, coverage and urgency
• Claims triage assigns complexity, fraud indicators and service priorities
• Coverage investigation tests policy triggers, exclusions and documentation
• Adjusters quantify property damage, liability exposure and settlement options
• Salvage and subrogation recover value after indemnity payments
• Claims leakage analysis identifies overpayment, delay and control failures
• Complaint handling records decisions, communications and escalation routes

Participants can identify insurance fraud indicators and apply key financial crime and data controls.

• Fraud triangle links pressure, opportunity and rationalisation in claim behaviour
• Red flags include inconsistent timelines, inflated invoices and repeat losses
• Application screening validates identity, insurable interest and declared exposures
• Sanctions screening prevents prohibited payments and counterparties from policy proceeds
• Anti-money laundering controls identify suspicious premium and claims transactions
• Data protection principles govern collection, retention and disclosure of claimant information
• Conduct risk monitoring tests fair treatment throughout product lifecycles

Participants can explain how reinsurance protects insurer capital and manages volatile loss exposures.

• Facultative reinsurance places individual risks exceeding treaty scope
• Treaty reinsurance transfers portfolios under agreed terms and conditions
• Quota share arrangements cede fixed percentages of premiums and losses
• Excess-of-loss cover responds above an agreed retention threshold
• Retention selection balances volatility, capital capacity and reinsurance cost
• Catastrophe aggregates measure potential loss from one event
• Reinsurance recoverables require credit assessment and timely collection controls

Participants can relate insurance governance, solvency and reporting requirements to operational decisions.

• Insurance Core Principles frame supervisory expectations for insurers and intermediaries
• Solvency II links capital requirements, governance and risk assessment
• IFRS 17 separates insurance revenue from investment components
• ORSA documents forward-looking capital, liquidity and risk assessments
• Governance roles distinguish board oversight, management accountability and control functions
• Conduct rules require clear disclosures, suitable products and fair claims
• Regulatory reporting reconciles policy, claims, capital and financial data

Participants can assess insurance distribution decisions and create a practical plan for applying course methods.

• Needs analysis maps client exposures, objectives and affordability constraints
• Broker, agent, bancassurance and direct channels have distinct duties
• Suitability records connect recommendations, disclosures and customer decisions
• Renewal reviews reassess sums insured, claims history and changing exposures
• Service metrics track turnaround, accuracy, complaints and retention
• Portfolio review combines loss ratios, concentration and customer outcomes
• A 90-day application plan assigns workplace actions, owners and evidence