LOMA 371 — Risk Management and Product Design for Insurance Companies
LOMA 371 describes technical product design for life insurance and annuities and the current state of risk management in insurance companies.
Course Objectives
Define the terms solvency and insolvency; interpret the relationships between profit and risk, and profitability and solvency; explain how the objectives of different stakeholders for an insurance company affect the company’s decisions regarding profit and risk.
Differentiate between regulatory capital, rating agency capital, and economic capital, and describe the general areas of solvency regulation for life insurance companies, including balance sheet risk exposures, financial statement review, and financial condition examinations.
Discuss risks insurers commonly face when developing new products, including interest-rate risk, credit risk, market risk, and currency risk; understand how risk management strategies such as diversification, cash-flow matching, duration matching, and hedging are deployed to offset these risks.
Describe the three primary components of financial models and identify the types of variables used, how values are assigned to these variables, and how simulation and extrapolation are used to produce outputs.
Describe the product development process and the cross-functional teams that participate in product development, as well as the basic stages and elements of the product development process, including conducting comprehensive business analysis, feasibility studies, and market analysis; developing marketing plans; setting product design objectives; and forecasting project costs and returns.
Distinguish between an insurer’s general account portfolio and its separate account portfolio and define investment concepts such as price appreciation, price depreciation, rate of return, and rules-based reserve valuation vs. principles-based reserve valuation for statutory accounting.
Remarks
We only offer this course in English e-book with self proctored exam.
Student must complete this course within 6 months after enrollment.
Estimated study hours： 30 hours
Relevant LOMA professional qualifications
This course shall form part of the following professional qualifications:
