Advanced Diploma In Insurance 

We are here to build your career in insurance

Overview

This is the ‘professional’ qualification awarded to experienced and expert market practitioners. Students are qualified for the stage after completion of the Diploma stage. At this level, Six (6) courses are required. Three are compulsory and three electives should be chosen from others.

Syllabus

A510 – Risk regulation and Capital Adequacy (Compulsory)

Part 1: Concept of risk

  • Nature of risk
  • Meaning of risk
  • Classification of risk
  • Cost of risk
  • Benefits of risk
  • Human Perception of risk
  • Human perception for risk
  • Utility thoery

Part 2: Risk management

  • Risk Management
  • Modern risk managment
  • UK Risk Management Standard
  • Risk assessment
  • Risk identfication
  • Risk estimation
  • Risk evaluation
  • Risk treatment
  • Risk avoidance
  • Risk control
  • Risk transfer
  • Risk financing

Part 3: Basic statistical concepts relating to insurance and risk management

  • Risk data
  • Characteristics of risk data
  • Data bases
  • Presentation of risk data
  • Tables
  • Graphs
  • Bar charts
  • Pie charts
  • Pictograms
  • Frequency distribution
  • Statistical management
  • Statistical measurement of risk data
  • Worked examples
  • probability
  • Probability distribution
  • Probability distributions
  • Theoretical probability distributions
  • Relationships
  • Appendix: Key statistical terms, their calculations and, and notes on their use and limitations

Part 4: Risk pricing

  • Underwriting, reinsurance and pricing insurance
  • Underwrting
  • Primary insurance
  • Reinsurance
  • Reinsurance pricing

Part 5: Risk based regulation and capital adequacy

  • Corporate governance
  • Corporate governance and risk management
  • The combined code
  • The penrose report
  • Appendix 1: Selected extracts from the Combined Code on corporstr governance
  • Appendix 2: characteristics of a ‘top down’ view of risk and risk management
  • The international context
  • International factors influencing UK insurance regulation
  • The European Union
  • Basel II
  • International Association of Insurance Supervisors (IAIS)
  • UK insurance regulation
  • UK Government interest in insurance
  • Insurance supervision in the UK
  • Developments since the mid-1980s
  • Financial Services Authority
  • Structure and the FSA Handbook and key elements relating to risk and risk management
  • Business Standards
  • FSA powers of enforcements
  • Current FSA themes
  • Appendix 1: Controlled functions as defined in the supervision sourcebook (SUP)
  • Appendix 2: Principles for Approved Persons (from APER)

A520 – Company and Contract Law

LAW AND LEGAL SYSTEMS

  • Legal systems
  • Insurance considerations of criminal law
  • Sources of English law
  • Judicial precedent and case law
  • Termilogy
  • Courts
  • People in the law
  • Law of tort
  • Law of trust

Formation of a Contract

  • General principles of the law of contract
  • Formation of a contract
  • Agreement
  • Intention to create legal relations
  • Consideration
  • Form
  • Contractual capacity

The Contents of a Contract

  • Introduction
  • Express terms
  • Implied terms
  • Standard terms and exemption clauses
  • Conditions asn warranies
  • Matter which affect the validity of contracts
  • Illegality
  • Improper pressure
  • Mistake
  • Misrepresentation
  • Non-disclosure

Performance and Remedies

  • Discharge of a contract
  • Remedies in contract

Transfer of right and Construction of Contracts

  • Privity of contract
  • Assignment
  • Construction of contracts
  • Conflict of laws

Special Principles of Insurance Contracts

  • Insurable interest
  • Utmost good faith

Proximate Clause

  • Definition of proximate clause
  • Train of events
  • Nature of the perils relevant to proximate cause
  • Standard fire policy
  • Standard fire policy
  • Concurrent causes and insurance
  • Summary of proximate cause
  • Proof of loss

Indemnity and its Corollaries

  • Indemnity
  • Subrogation
  • Contribution
  • Conclusion

Consumer Protection

  • Codes of practice
  • Statutory control of insurance contracts
  • Scope of the Financial Services Act 1986
  • The Financial Services and Markets Bill
  • Self-regulation oat Lloyd’s of London

The Law Agency: Principles and Operation

  • Relationship of principal and agent
  • Types of agents
  • Appointment of agents
  • Authority of agent
  • Duties owed by agent to principal
  • Duties owed by principal to agent
  • Relationship of principal and agent to third parties
  • Termination of agency

Particular Types of Agent

  • Partners
  • Company directors
  • Del credere agents
  • Mercantile agent
  • Auctioneers
  • Solicitors
  • Bankers
  • Brokers
  • Accountants
  • Chartered secretaries
  • Lloyd’s agents
  • Commercial agents

Trading Organisations

  • Different kinds of trading of trading organisation
  • Corporations
  • Legal requirements of a registered company

Company Management

  • Internal management
  • Directors
  • Company secretary
  • Chairman
  • Takeovers

Insurance Companies

  • Insurance Corporate Act 1982
  • Financial Serices Act 1986
  • Classification of insurance business
  • Important provisions and requirements
  • DTI returns
  • Solvency margins and policyholder protection
A530 – Business and Economics

Basic Economic Problems and Systems

  • Economic systems
  • Evaluation: a change in the balance of power

Supply and Demand

  • Demand
  • Supply
  • Determination of market prices
  • Insurance market
  • Supply and demand in the 1990s

Supply and Demand Applied to Insurance

  • Factors that affect demand for insurance
  • Supply of insurance

Nature of Competition

  • Why some markets are more competitive than others
  • Importance of the global market
  • Importance of marketing
  • Consumer protection

Role of Insurance in the Production Process

  • Importance of production
  • Factors of production
  • Role of insurance in the UK economy
  • Capital investment

Inflation and Unemployment

  • Inflation
  • Unemployment
  • Low inflation and low unemployment

Monetary and Fiscal Policy

  • Monetary policy
  • Fiscal policy
  • Evaluation: demand management in the 1990s
  • Monetary and fiscal policy in the insurance industry

Balance of Payments and Exchange Rates

  • Balance of payments
  • Balance of payments statistics
  • Effect of current account surpluses and deficits
  • Desirability of current account surpluses and deficits
  • Causes of current account surpluses and deficits
  • Balance of payments policy
  • European single currency (the euro)
  • Insurance industry and the balance of payments

Types of Business

  • Business and non-business organizations
  • Categories of business
  • Factors that affect a business
  • Ethical basis of insurance business

Structure of Business Organisations

  • ‘One best way’ versus the ‘contingency’ approach
  • Size as a determinant of structure
  • Delegated authority
  • Limited companies
  • Recent trends in the structuring of insurance companies

Electronic Information

  • Role and nature of information systems in insurance organisations
  • Other structures for information technology
  • Use of IT in insurance marketing and distribution
  • Electronic Data Interchange
  • E-commerce
  • Year 2000 problem

Financial Objectives and Financial Information

  • Finanial objectives of organisations
  • Planning and budgeting
  • Groups interested in information about an organization
  • Annual reports and accounts

Fundamental Documents used by Accountants

  • Balanace sheet
  • Profit and loss account
  • Cash flow statement
  • Accounts of insurance organisations

Financial Analysis, Control and Planning

  • Introduction to ratio analysis
  • Frequently used rations
  • Use of ratios (summary)
  • Ratios in the insurance industry

Sources of Business Finance

  • Need for short-term finance
  • Need for long-term finance
  • Other sources of business finance

Taxation and the financial strength of insurance companies

  • Corporations
  • Other faxes
  • Insurance Premium Tax (IPT)
  • Taxation and insurances company results
  • Rating agencies
  • Insurance company reserves
  • Solvency Margin
A655 – Risk Management

Context of risk management

  • Definition of risk management
  • Relationship between risk and the objectives of an organisation
  • Consequences of failing to deliver
  • Need for risk management and the potential costs in ignoring it
  • Significance of risk management to strategy
  • Corporate governance
  • Location within an organisation of the responsibility for risk management

Introduction to the risk management process

  • Process of risk management
  • Role of the risk manager
  • Global risks
  • Identification of activities
  • Sources of internal information
  • Sources of external information
  • Appendix 1: Example job description

Risk Techniques

  • Where do the risks lie?
  • What are those risks?
  • Shaping of risks concepts for decisions
  • Safeguards
  • Business impact analysis
  • Credibility and quality testing
  • Appendix 1: Questionnaire – critical paper-based information

Assessment and analysis of risk

  • Objectives of risk analysis
  • Statistical analysis of risk
  • Killer risks
  • Risk analysis tools
  • Benchmarking of information and decisions

Assessment and prioritisation of risks

  • Attitude to risk
  • Comparing estimated levels of risk against risk appetite
  • Rating risks in terms of statutory and management priorities

Assessment and implementation of risk controls

  • Risk controls
  • Continuity or contingency planning
  • Recovery plans
  • Crisis management
  • Appendix 1: Basic prompts for the recovery teams

Material and workplace risk control

  • Material risk control
  • Workplace risk control
  • Appendix 1: Injuries to employees by occupation and severity of injury 2004/05

Risk Control I

  • Legislation risks
  • Product risk control
  • Political risks
  • Environmental risks
  • Third party liability risks
  • Motor risks
  • Contracted risks

Risk Control II

  • Technology risks
  • Brand and reputation
  • The supply chain
  • Evaluation of risk control options
  • Preparation and implementation of risk control plans

Risk financing

  • Cost of risk incidents
  • Development of corporate risk funding
  • Evaluating risk financing options
  • Risk financing plan

Monitoring and review

  • Areas of change
  • Dealing with change
  • Matching review mechanism to individual risks

Case studies

  • Case study one: Risk management structure; Springfields Ltd
  • Case study two: Physical risk survey
  • Case study three: Business continuity
A735 – Life Assurance (Compulsory)

Development of Life Assurance

  • Early life assurance
  • The earliest life assurance companies
  • Later developments
  • Early mortality tables
  • Annulties
  • Early underwriting
  • Industrial Assurance
  • State intervention

Types of Cover Available

  • How policies are written
  • Basic types of policy
  • Term assurance
  • Investment policies
  • Whole life policies
  • Endowment policies
  • Other types of life policy
  • Bolt-on options
  • Industrial assurance
  • Group life assurance
  • Income protection insurance
  • Group IPI and critical illness cover
  • Business assurance
  • Annulties

How Life Policies are Affected

  • Definitions
  • Legal principles
  • Underwriting
  • Underwriting procedure and forms
  • Medical factors
  • Occupational factors
  • Residential factors
  • Financial factors
  • Methods of dealing with under-average lives
  • Calculation of premiums

Policy Administration

  • Policy documents
  • Premium collection
  • Alterations
  • Assignments
  • Policies of Assurance Act 1867
  • Absolute assignments
  • Mortgages
  • Second-hand policies
  • Bankruptcy

Trusts

  • Types of trust
  • Trust creation
  • Trustees
  • Beneficiaries
  • Trusts including life policies
  • Married Women’s Property Act 1882
  • Non-statutory trust policies
  • Dealings with trust policies

Reassurance

  • The reassurance market place
  • The need for reassurance
  • Types of reassurance
  • Methods of reassurance
  • Quota share reassurance
  • Reassurance administration

Claims

  • Maturity claims
  • Death claims
  • Lost policies
  • Surrenders
  • Loans

Consumer Protection

  • Insurance Companies Act 1982
  • Policy holders’ Protection Act 1975
  • Office of Fair Trading
  • Statement of Long-term Insurance Practice
  • The Insurance Ombudsman Bureau
  • Money Laundering
  • European legislation

The Financial Services Act 1986

  • The Act
  • Authorisation
  • Misleading statements and practices
  • The Investors Compensation Scheme
  • Polarisation
  • The regulators
  • The PIA rules for product providers
  • The PIA rules for independent intermediaries

Taxation Principles

  • Income tax
  • Capital gains tax
  • Inheritance tax
  • Corporation tax

Taxation of Life Policies

  • Life assurance premium relief
  • Chargeable fains
  • Taxation of IPI
  • Taxation of annuities
  • Capital gains tax
  • Inheritance tax

Information Technology

  • Equipment
  • Application for life offices – administration
  • Information technology in selling
  • Use of computers in training
  • Electronic communication
  • Computers and IFAs
  • Data Protection Act 1998

Ethics

  • Ethics in society
  • Ethics in business
  • Ethics in insurance
  • CIIN Code of Conduct
  • Ethical funds
A745- Principles of Property and Pecuniary Insurance (Compulsory)

The property insurance market

  • Development and structure
  • Market practices in relation to recommended policy wordings
  • Justification for comon wordings
  • EU directives relevant to property insurance
  • Non-admitted risks and difference to conditions (DIC) cover
  • Application of taxes
  • Scope and application of key legislation

Property damage insurance cover (1)

  • Standard fire and special contingencies policy
  • Provision of terrorism cover
  • Theft policies
  • All risks policies
  • Types of property insured
  • Other commercial property Insurances
  • Appendix 1: Specimen commercial combined policy
  • Appendix 2: Specimen commercial all risks policy

Property damage insurance cover (2)

  • Clauses commonly found in property damage policies
  • First loss, floating and blanket insurances
  • Combined and package policies
  • Use of average conditions, warranties and conditions precedent, excesses, deductibles and franchises
  • Renewal procedures and considerations
  • Appendix 1: Warranties, etc.
  • Appendix 2: Deductibles

Business Interruption Insurance

  • Need for and function of business interruption insurance
  • Differences between accountants’ and insurers’ gross profit
  • Development of payroll coverage
  • Indemnity periods
  • Calculation of gross profit sum insured
  • Contingencies Insurable and other extensions available
  • Policy conditions and clauses
  • Other business interruption insurances
  • Special risks and occupations
  • Appendix 1: Specimen business interruption policy
  • Appendix 2: Specimen gross profit declaration-linked basis specification

Financial Crime Covers

  • Coverage of fidelity insurance policies
  • Extensions of cover
  • Types of fidelity policies available
  • Assessment of fidelity risks
  • Crime policies

Risk assessment: property insurance

  • Presentation of risks for underwriting
  • Essential information needed for assessment of a risk
  • Use of proposal and application forms in property insurances
  • Appendix 1: Example risk presentation

Property claims (1)

  • Application of the principles of insurance to claims
  • Examples of market agreements in relation to claims and trends in their use
  • Claims procedures and use of claim forms
  • Loss adjusters
  • Settlement of claims in the event of dispute

Property claims (2)

  • Measurement of indemnity for various classes of property insured
  • Reinstatement
  • Claims involving underinsurance and the application of average
  • Appointment of losses involving the principle of contribution
  • Settlement of claims under collective policies
  • Use of policy formula to calculate business interruption claims settlements

Construction insurance: development and structure

  • Development and need for construction insurance
  • Legal background
  • Parties to the contract
  • Environmental issues

Construction contracts

  • Joint Contracts Tribunal (JCT), 1998 edition with amendments
  • JCT Standard Form of Building Contract 1998 (with Contractor’s Design)
  • JCT Management Contract 1987
  • Sub-contract forms
  • JCT Major Contracts Form 2003
  • Intermediate form (IFC 1998)
  • Measured term contracts
  • Institution of Civil Engineers’ Conditions of Contract
  • ICE Design and Construct Contract
  • Government Contracts
  • General Conditions of Contract for Use with Home and Export Contracts with Erection
  • Conditions of Contract for Process Plants
  • FIDIC (International Federation of Consulting Engineers)
  • FIDIC Design – build and turnkey conditions
  • FIDIC – new international sub-contract 1994
  • Construction and Engieering Contract (NEC)
  • BOOT contracts
  • Model Conditions for the Hiring of Plant
  • Hire Association of Europe
  • Private Finance Initiative (PFI)
  • Project Partnering Contract 2000 (PPC 2000)
  • Appendix 1: Extract from FIDIC Plant and Design Build Contract

Construction Insurance: Policy cover

  • Contract works policy
  • Machinery erection risks
  • Plant and equipment cover
  • JCT Clause 21.2.1 insurance
  • Latent defects insurance
  • Professional indemnity insurance
  • Contract guarantees
  • Employers’ liability and public liability
  • Civil engineering completed risks insurance

Engineering insurance

  • Development and need for engineering insurance
  • Legislation
  • Codes of Practice, Guidance Notes and other voluntary standards supporting best practices
  • Policy cover
  • Appendix 1: SAFed guidance document

Business interruption insurance: relating to engineering and construction insurances

  • Development and need for business interruption insurance
  • Engineering business interruption policy cover
  • Computers (business interruption and miscellaneous risks in connection with computers)
  • Construction business interruption policy cover

Engineering and construction insurances: claims principles and procedures

  • Principles of claims handling
  • Claims procedures
  • Extent of liability and application of policy conditions
  • Claims estimating
A755 – Liability Insurance

Sources of Civil Liability

  • Basis of civil law in England and Wales
  • Contract and tort
  • Civil procedure and the Woolf Reforms
  • Doctrine of binding precedent
  • Civil law in other jurisdictions

Negligence

  • Definition
  • Duty of care
  • Breach
  • Causation
  • Remoteness of damage
  • Contributory negligence
  • Special cases
  • Onus of proof and res ipsa loquitur

Other Torts

  • Nuisance
  • Trespass
  • Breach of statutory duty
  • Strict liabilities
  • Liability for the acts of others
  • Joint tortfeasors
  • Occupiers and owners
  • Contractural liability
  • Defamation

Defences, Limitations and Remedies

  • General defences
  • Parties to an action at law
  • Limitation of actions
  • Types and categories of remedy
  • Damages propery and economic loss
  • Damages personal injury
  • Liability for death

Risk Perception, Identification, Evaluation and Management

  • Approaches to risk
  • Obtaining adequate underwriting information
  • Loss control audits
  • Risk improvement
  • Underwriting risks in other legal systems
  • The historical claims record

Liability Underwriting, Theory and Practice

  • Operative clause
  • Policy conditions
  • Admitted and non-admitted policies
  • Rating the risk
  • Indemnity limits
  • Third life and non-life directive

Employers’ Liability I

  • Legislative insurance framework
  • How liability arises
  • Health and safety legislation
  • Regulations and codes of practice
  • Liability for workplace injuries outside the UK
  • Appendix 1: Certificate of Insurance

Employers’ Liability II

  • Examples of General hazards and specific risks associated with different occupations and trade
  • Employers’ liability policy wording
  • Underwriting the risk

Public and Products Liability

  • Liability of an organisation
  • Market overview
  • Legal framework
  • Underwriting considerations
  • Risk management
  • Indemnity limits
  • Excess/deductibles
  • Rating basis

Public and Products Liability: The Policy

  • Operative clause
  • Exclusions
  • Conditions
  • Extentions
  • Other covers available

Directors’ and Officers’ Liability

  • Market overview
  • Legal framework
  • Millenium risk
  • Policy wording
  • Underwriting the risk

Professional Indemnity

  • How liability arises
  • Examples of how liability arises in different professions
  • Policy cover
  • Proposal form
  • Rating
A765 – Motor Insurance

The Motor Insurance Market Place

  • Market Structure
  • Differences in private and commercial motor insurance transactions
  • Regulatory and market organisations
  • Market data
  • Appendix 1: Manual Business Information Sheet

Legal Considerations

  • Legislative developments in motor insurance since 1930
  • EU directives
  • Road Traffic Act 1988, as amended by the Road Traffic Act 1991
  • Related legislation
  • Use of vehicles for company business
  • Use of vehicles outside the UK
  • Appendix 1: Road Traffic Act learning aid

Scope of Cover Provided: The Basic Motor Policy

  • Types of cover
  • Policy structure and loss or damage section
  • Other parts of the private car loss or damage section
  • Private motor – liability to others
  • General conditions
  • General exceptions
  • Private motor foreign use
  • Private motor additional benefits
  • Uninsured loss recovery legal expenses policy
  • Appendix 1: Motor Proposal Form

Scope of cover provided: non-private car policy cover variations

  • Loss or damage: commercial vehicle, small van and motorcycle
  • Liability to others: commercial vehicle, small van and motorcycle
  • Policy wording other clauses
  • Appendix 1: ‘Excelerator’ Policy

Risk Assessment, rating and Underwriting

  • General principles of rating and underwriting
  • Rating and underwriting for commercial motor insurances
  • Fleet risks
  • Motor trade risks: motor trade fleets
  • Vehicles of special construction
  • Self-drive hire vehicles
  • Buses and coaches
  • Non-standard risks
  • Risk management
  • Declined Cases Agreement
  • No claims discount

Other Policy Documentation and Renewal or Cover

  • Certificate of Insurance
  • Temporary cover note
  • Policy schedule
  • Renewal of cover
  • Renewal system
  • Private car renewal system
  • Commercial motor and fleet renewal procedure
  • Renewal and the Financial Services Authority

Claims Procedures

  • Principles of claims handling applied to motor insurance
  • Police involvement
  • Market agreements
  • Motor engineers and recommended repairers
  • Claims procedure
  • Fraud prevention
  • Dispute resolution
A770 – Principles of Marine Insurance

Principles of Marine Insurnace

Underwriting: Hulls

  • Factors which determine the hull rate
  • Fleet statistics
  • Market agreements
  • Other insurable insterests of shipowners
  • Building risks
  • Port risks
  • Hull trading warranties
  • Examples of hazardous voyages
  • Returns of premium
  • Reactivation of laid-up vessels
  • War and strikes risks
  • The ISM code
  • Year 2000 – The Millennium bu
  • Appendix 1: Hull renewal forms for submission of figures

Underwriting: Cargo and Liabilities

  • Interests insured as cargo
  • Effecting insurance
  • Types of policy
  • Documents for overseas trade
  • Open covers
  • Import duty insurance
  • Contingency risks
  • Conditions of insurance
  • Extraneous risks
  • Other extensions of cover
  • Institute Trade Clauses
  • Container transport
  • Insurance of containers
  • Cargo rating
  • Goods in transit: liability
  • War and strikes, etc. risks
  • Appendix 1: Good in transit proposal form

Loss Prevention

  • Nature of loss prevention
  • Obstacles to loss prevention
  • Measures to improve loss prevention
  • Responsibility for taking action
  • Priorities and conclusions

Liability Cover for Owners and Charterers

  • Structure and history of P & I Clubs
  • Generaal conditions of P & I cover
  • Limits of liability under P & I Club rules
  • Covered P & I liabilities
  • Freight, Demurrage and Defence Clubs
  • Charterers’ liability cover

Energy and Associated Risks

  • Background history
  • Main types of offshore units
  • Underwriting considerations
  • Construction risks
  • Operating risks
  • Specific problems relating to energy risks

Reinsurance

  • Functions of reinsurance
  • Why reinsure?
  • Nature and uses of reinsurance
  • The main classes to be protected
  • Glossary of reinsurance

Types of Marine Reinsurance

  • Treaty reinsurance
  • Facultative reinsurance

Underwriting Marine Reinsurance

  • Arranging the desired programme
  • Establishing the price
  • Records analysis

Reviewing the Marine Reinsurance Programme

  • General points to be considered
  • Particular accounts
  • Fixing the retention
  • Methods of constructing a marine reinsurance programme
  • Recent trends

Reinsurance Accounting

  • Facultative reassurance
  • Proportional treaties
  • Non-proportional treaties
  • Appendix 1: Joint excess loss committee excess loss clauses revision for 1 January 1997

Reinsurance Claims

  • Claims on facultative policies
  • Claims on proportional treaties 1
  • Claims on non-proportional treaties
  • Examples

Principal Institute Hull/Freight/Disbursements/War and Strikes Clauses

  • Institute Clause: History and Application
  • Institute Time Clauses – Hulls 1/11/95
  • Institute Time Clauses – Hulls – Restriccted Perils 1/11/95
  • Institute General Average – Pollution Expenditure Clause – Hulls 1/11/95
  • Institute Voyage Clauses – Hulls 1/11/95
  • Institute Time Clauses – Hulls – Total Loss, General Average and 3/4ths Collision Liability (Including Salvage, Charges and Sue and Labour) 1/11/95
  • Institute Voyage Clauses – Hulls – Total Loss, General Average and 3/4ths Collision Liability (Including Salvage, Charges and Sue and Labour) 1/11/95
  • Institute Time Clauses – Hulls – Total Loss Only (Including Salvage, Charges and Sue and Labour) 1/11/95
  • Institute Time Clauses – Hulls – Disbursements and Increased Value (Total Loss Only, Including Excess Liabilities) 1/11/95
  • Institute Time Clauses – Hulls – Excess Liabilities 1/11/95
  • Institute Additional Perils Clauses – Hulls (For use only with Institute Time Clauses – Hulls 1/11/95) 1/11/95
A780 – Aviation Insurance

Aviation Market

  • Historical survey
  • Development of aviation insurance
  • Aviation insurance markert and risk placing
  • Market bodies
  • Technical and information services
  • Reinsurers

Aviation Industry Background

  • World aircraft fleet
  • Regulatory authorities
  • Avionics
  • Safety and training
  • Flight operations
  • Technology problems
  • Future of global air navigation CNS/ATM systems and FANS

Main Clauses of Business

  • Background
  • Aircraft hull and liability
  • Aviation products liability
  • Airport liability
  • Aviation hull war and allied perils cover

Other Classes of Business

  • Personal accident
  • Loss of use or consequential loss
  • Loss of licence
  • Breach of warranty insurance
  • Loss of profits
  • Cargo liability/ all risks

Technical Background

  • Use and application of endorsements and clauses
  • Standard market deductibles
  • Bank/leasing company agreements and contractual requirments
  • Additional wordings/clauses

Underwriting Considerations

  • Hull insurance
  • Methods of rating
  • Factors governing the rate
  • Practical underwriting
  • Liability insurances
  • Account management considerations

Risk Management in the Aviation Context

  • Importance of risk management
  • Captives

Conventions, Protocols and Agreements

  • Background to the Warsaw Convention and Hague Protocol
  • Substantive elements of the Warsaw Convention and Hague Protocol
  • Montreal Agreement 1966
  • Malta Group
  • Japanese Initiative
  • Australian legislation 1994/1995
  • IATA Inter-Carrier Agreements on passenger liability
  • EU Regulation 2027/97
  • Montreal Additional Protocols 1-4
  • Montreal Convention 1999
  • Guadalajara Convention 1961
  • Code sharing and passenger liability
  • Rome Convention 1952 Surface Damage
  • European Product Liability Directive

Aircraft Regulations and Safety

  • Chicago Convention 1944
  • International Civil Aviation Organisation (ICAO)
  • International Air Transport Association (IATA)
  • Background criminal offences

Aircraft Legislation in the UK

  • Carriage by Air Acts (Application of Provisions) Order 1967
  • Civil Aviation Act 1982
  • Air Navigation Order the Rules of the Air
  • Air rage legislation
  • Minimum levels of insurance
  • Calculation of damages

Aircraft Legislation in the USA

  • Overview of the American Legal system
  • Jurisdiction and venue disputes
  • US litigation process
  • Punitive and compensatory damages

Claims

  • Investigation hull claims
  • Surveyors
  • Sequence of actions
  • Claims settlement
  • Investigation liability claims
  • Information required
  • Prosecution of the claim
  • Passenger claims
  • Liability settlements in the UK
  • Liability settlements in the USA and Canada
  • Cargo claims
  • Third party liability claoms
  • Products liability
  • Government investigating bodies

Space and Satellite

  • Risk assessment considerations
  • Liability issues
  • Claims handling

Future Trends in Aviation Insurance

  • Growth
  • Aviation manufacturers and airports
  • Developments and trends
  • Technical advances
  • Security risks
  • E-commerce
A785 – Principles of Reinsurance

THE PURPOSE OF AND PARTIES TO REINSURANCE

  • purpose of reinsurance
  • buyers of reinsurance
  • retention
  • sellers of reinsurance
  • reinsurance brokers

METHODS OF REINSURANCE

  • types of reinsurance
  • distinctions between proportional and non-proportional methods of reinsurance
  • reinsurance premiums
  • retrocession

OPERATION OF FACULTATIVE REINSURANCE

  • facultative propotional reinsurance
  • facultative excess of loss
  • premiums and claims

OPERATION OF PROPORTIONAL REINSURANCE TREATIES

  • types of proportional treaties
  • commissions and deductions
  • pricing accounting issues
  • appendix 1: fixed percentage
  • appendix 2: eights basis
  • appendix 3: twenty-fourths basis

OPERATION OF NON-PROPORTIONAL REINSURANCE TREATIES

  • what is non proportional reinsurance?
  • treaty excess of loss
  • premium
  • event defination

LEGAL ISSUES RELATING TO REINSURANCE

  • legal principles
  • formation of reinsurance contract
  • drafting and interpreting contract documents
  • choise of law, jurisdiction and forum
  • alternative dispute resolution
  • limitation and time
  • statutory requirements
  • insolvency

PLACING OF REINSURANCE

  • reinsurance planning
  • placing information
  • negotiation reinsurance contracts
  • security

WORDINGS

  • wordings
  • facultative reinsurance
  • treaty wordings
  • proportional wordings
  • non-proportional wordings
  • clauses in propotional and non-propotional wordings

REINSURANCE MARKETS

  • nature of the reinsurance market
  • principal reinsurance market
  • market characteristics
  • market associations

PROPERTY REINSURANCE

  • cedant’s need for reinsurance
  • propotional reinsurance: treaty
  • non-proptional reinsurance
  • developments in property reinsurance
  • appendix 1: fire excess of loss questionnaire
  • appendix 2: property catastrophe excess of loss treaty wording 11/91
  • appendix 3: property risk excess treaty wording
  • appendix 4: property first surplus reinsurance agreement
  • appendix 5: property quota share reinsurance agreement

CASUALTY REINSURANCE

  • underwriting considerations
  • motor
  • personal accident
  • workers’ compensation
  • employers’ liability
  • public liability
  • products liability
  • professional indemnity
  • trade credit, surety, political risk, fidelity insurance and bonds
  • miscellaneous risks
  • issues of concern to reinsurers of liability insurance
  • combining classes of casualty buisness
  • appendix 1: employers’ liability/workers’ compensation

MARINE AND AVIATION

  • marine account
  • underwriting of marine and aviation risks
  • aviation account
  • appendix 1: joint excess loss clases
  • appendix 2: oil and gas well drilling tools floater form(all risk)
  • appendix 3: reinsurance underwriting & claims control clause
  • appendix 4: agreed valuue clause
A825 – Application for Reinsurance

THE APPLICATION OF REINSURANCE – A825

THE BUYER’S REINSURANCE NEEDS

  • retention
  • types of reinsurance
  • cost of reinsurance
  • strategic and financial considerations
  • market environment
  • aising capital

DESIGNING AND ARRANGING THE REINSURANCE PROGRAMME

  • reinsurance programme objectives
  • information required
  • appropriate form of reinsurance
  • alternate risk transfer

UNDERWRITING CONSIDERATIONS

  • proportional treaties
  • non-propotional contracts
  • monitoring aggregate exposures
  • retrocession

REINSURANCE CLAIMS I

  • claims department
  • claims on facultative policies-proportional and excess of loss
  • portional claims
  • non-propotional claims-excess of loss

REINSURANCE CLAIMS II

  • property claims
  • casualty claims
  • marine and aviation claims
  • claims allocation examples
  • claims allocation process in the london market
  • disputes and alternative dispute and alternative dispute resolution (ADR)
  • claims reserves
  • commutations
  • appendix 1: LGT clauses

REVIEWING THE PROGRAMME

  • recording of data
  • profitability of reinsurance
  • reviewing the reinsurance requirement
  • concerns of the reinsurer
  • market cycles
  • appendix 1: specimen statistics: per risk excess of loss
  • appendix 2: specimen statistics: property catactrophe excess of loss
  • appendix 3: specimen statistics: first surplus fire
  • appendix 4: specimen statistics: surplus personal accident

FINANCIAL ASPECTS

  • investment considerations and practice of reinsurers, including currency matching
  • choice of investments and relationship of assets to liabilities
  • structure of reinsurance underwriting accounts
  • evaluation of reinsurer security
  • consequences of reinsurer failure
  • consequences of reinsurer failure
  • reserve deposite
  • return on capital employed
  • recent developments
A930 – Insurance Broking

INSURANCE BROKING- A930

THE INTERMEDIARY MARKET

  • definition of an intermediary
  • how intermidaries operate
  • structure and placing of business at lioyd’s
  • trade associations and broker network
  • impact of brokers on the market

REGULATION OF INTERMEDARIES

  • key features
  • approved persons and fit and proper standard
  • insurance: conduct of business sourcebook(ICOB)
  • appointed representative
  • training and competence
  • financial ombudsman service
  • financial service compensation scheme
  • reporting requirements
  • professional indemnity insurance
  • capital resources requirement

RELEVANT LEGISLATION

  • law of agency and the broker’s legal relationship with the insurer
  • data protection act 1998
  • consumer credit acts
  • money laundering regulations 2003
  • appendix 1: ABI guidance on insurer TOBAS
  • appendix 2: generic framework TOBA agreed by royal sun alliance and the LMBC
  • appendix 3: generic TOBA used by allianz cornhill

OTHER REGULATORY ISSUES

  • discipline of brokers
  • client money acconting requirements
  • tax implications for global insurance placement
  • appendix 1: disciplinary action-firms
  • appendix 2: disciplinary action-approved persons

THE BROKER AND CLIENT

  • introducing the role of the broker
  • understanding client needs
  • terms of business agreements(TOBAs)
  • service level agreements(SLAs)
  • clients satisfaction
  • appendix 1: LMBC guidance on client TOBAs
  • appendix 2: LMBC suggested client TOBA
  • appendix 3: example extract from an SLA

THE BROKER AND THE INSURER

  • how many insurers should a broker deal with?
  • selection of insurers
  • insurer failure

PLACING THE RISK AND NEGOTIATING CLAIMS

  • negotiating and placing the risk
  • london market reform
  • policy wordings and contact certain
  • negotiating claims
  • appendix 1: sample triangulation
  • appendix 2: example of a UK register
  • appendix 3: ABI contract certainty code of good practice

OTHER ASPECTS OF THE BROKER’S ROLE

  • programme design and global insurance programmes
  • electronic trading
  • risk management
  • remuneration of the broker
  • delegated authority

MARKETING

  • what is marketing?
  • marketing environment
  • marketing research
  • product development
  • sales process
  • marketing and sales-regulation
  • appendix 1: ICOB 3 financial promotions

SECURITY

  • security function within large brokers
  • monitoring solvency of other intermediaries

CLIENT SERVICE

  • causes of mistakes and poor service
  • examples of errors and omissions
  • true cost to the brokers
  • role of quality system
  • implementing an effective quality system
A935 – Management

MANAGEMENT – A935

MANAGEMENT IN CONTEXT

  • role of management in business
  • organisational structures
  • corporate culture
  • external environment
  • managing stakeholder realationships
  • corporate governance
  • appendix 1: comparison of structure against management factors

STRATEGIC MANAGEMENT

  • models for strategic thinking
  • external business environment
  • internal business environment
  • developing strategic and initiatives
  • compliance
  • management by objectives

EFFECTIVE CONTROL TECHNIQUES

  • management and control
  • management information
  • control models
  • quality process and initiatives
  • compliance
  • management by objective

FINANCIAL MANAGEMENT

  • financial control
  • financial accounting
  • mangement accounting
  • financial forecasting

CORE MANAGEMENT SKILLS

  • leadership
  • motivation
  • leadership style
  • team building
  • communication
  • decision making
  • delegation
  • time management
  • project management
  • managing change
  • knowledge management
  • interviewing

MANAGEMENT OF HUMAN RESOURCES

  • scope of human resource management
  • manpower planning
  • managing the recuitment process
  • performance and reward management
  • training and developing people
  • employment legislation
  • human resources and corporate culture
  • appendix 1: example job description
  • appendix 2: example competencies for a manager

BUSINESS TRENDS

  • general business trends
  • global business environment
  • financial services sector
  • internet and e-commerce
  • management and the consumer
A940 – Financial and Accounting

Introduction to accounting

  • Why there is a need to understand accountancy
  • What is accounting?
  • Accounting principles, conventions and concepts
  • Preparing financial statements

The accounting framework

  • European legislation
  • UK legislation
  • Accounting standards and practices
  • Stock Exchange obligations
  • Appendix 1: Statement of Recommended Practice (SORP)

The balance sheet

  • Balance sheet formats
  • Balance sheet items in detail – liabilities and capital
  • Balance sheet items in detail – assets
  • Notes relating to the balance sheet

Revenue and profit and loss accounts

  • What is profit?
  • Profit and loss account formats
  • Profit and loss account items in detail
  • Statement of Total Recognised Gains and Losses (STRGL)
  • Cash flow statements
  • Notes relating to the profit and loss account

Interpreting financial accounts

  • Stakeholders
  • Credit rating
  • Interpreting financial information
  • Security
  • Profitability
  • Future plans and prospects
  • Financial information for internal use

Accounting standards

  • Relevance for insurers
  • Internations Financial Reporting Standards
  • Major differences between IFRS and UK GAAP rules
  • Share options
  • IFRS 3 Business combinations
  • IFRS 4 Insruance contracts
  • IFRS 5 Non-current assets
  • IFRS 7 financial instrument disclosures
  • Dividends/distributable reserves
  • Convergence with US GAAP
  • Auditing standards
  • Other legislation
  • Appendix 1: Example of a cash flow statement prepared in accordance with IAS 7

Management accounting: costing

  • Scope of management accounting
  • Cost accounting
  • Costing techniques
  • Decision-making
  • Information technology
  • Variance analysis

Management accounting: budgeting, planning and control

  • Stages in the planning process
  • Why do we budget?
  • Constructing the budget
  • Budgeting methodology
  • Motivational aspects of budgeting
  • Control of assets and liabilities
  • Capital expenditure
  • Modelling tools and techniques

Regulation of insurance companies (1) – EU and UK legislation

  • The EU dimension
  • UK legislation – pre-N2
  • UK legislation under the N2 regime
  • Money laundering legislation

Regulation of insurance companies (2) – FSA Handbook and corporate governance

  • FSA Handbook
  • General Prudential Sourcebook
  • Key regulatory areas for insurers
  • Corporate governance
  • Current developments

Regulation of insurance companies (3) – Financial

  • Solvency margin
  • Reporting requirements for non-life insurance and intermediaries
  • Valuation of assets and liabilities
  • Matching and localisation of assets
  • The FSA return(s)
  • Financial Services and Market Tribunal
  • Appendix 1: Permitted limits for exposure to assets

Taxation

  • General
  • Personal taxation
  • Company taxation
  • Value added tax
  • Lloyd’s
  • Brokers
  • Insurance companies – general business
  • Life and annuity business
  • Investment
  • Overseas taxation and double taxation relief
  • EU Issues
  • New opportunities and challenges

Investment and Insurers

  • General principles
  • Types of funds
  • Different securities investments
  • Investments using assets
  • Investors’ ratios

In the market place

  • The markets
  • Raising share capital
  • Transfers of securities
  • Information
  • Duties as a shareholder
A945 – Marketing

Role of Marketing

  • Definition of marketing
  • Origins of marketing as a business activity
  • Role of marketing today
  • Marketing function within a business

Key concepts

  • Good and services
  • ‘Needs’ and ‘wants’
  • Competition and the free market
  • Product life cycle
  • Marketing mix
  • Segmentation
  • Market positioning

Marketing and insurance

  • Insurance industry
  • Insurance business from a marketing perspective
  • Competition
  • Segmentation

Marketing strategy

  • Relating marketing strategy to corporate strategy
  • Components of the marketing strategy for services
  • Different strategies for different markets
  • Impact of change
  • Operational marketing, implementation, monitoring and measuring

Market research and product development

  • Principles of market research
  • Situational analysis
  • Perception and awareness
  • Competitors
  • Value/supply chain analysis
  • Product development and management

Communication and branding

  • Need for communication
  • Message and medium
  • Communication methods
  • Strategic uses of communication
  • Establishing a brand
  • Communicating the brand
  • Measuring the brand’s value
  • External assistance

Entry requirement 

Minimum of O’Level Examination Results (Combination of a Maximum of 2 Sittings)

Registration Process 

Register as a member on the website and proceed for the examination registration, also online, on candidate’s individual portal

Payment process

To pay electronically/online. Cost of the course is N7,500.00 while there is a flat non-refundable entry fee of N12,500.00 per examination diet.

Examination procedures

Register, Pay and Sit for the Examination. Compulsory Course to be passed by/accrued through exemption or conversion by the candidate 

Eligibility 

Must possess at least 5 credits at O’Level Examination

Exemption

As per the Council Exemption Guideline on the website (see the link below and paste it here)

All Advanced Diploma in Insurance Course Books cost ₦4,000.00
If you are in need of assistance, you can reach out to us via the Contact us page or send enquiries to [email protected], call 08172040917