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

  • 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