DGI02 Insurance Company Operations - Singapore College of ...

DGI02 Insurance Company Operations
Module Description:
This modules aims to provide the candidate with the knowledge of the types of business
organisations and their functions; the operations of insurance companies, such as
underwriting and claims, as well as business organisations in general, such as management
and human resources. It also aims to build an understanding of financial statements for
insurance professionals as well as the interpretation of financial statements and budgeting
principles.
Syllabus:
Understand business organisations in relation to insurance.
Chapter 1 Business organisations
1.1 Concepts in business
1.2. General business trends
the key global trends affecting businesses and their impact
the key stakeholders involved in businesses
the resources used in the production of goods and services
the common business functions found in organisations
the different types of business outputs
how external factors affect businesses
the importance of customers
the concept of business clusters and their potential to affect competition
business ownership and control
the ways that businesses get involved in the community
1.3 Objectives of business organisations
the main objectives of business organisations
the basic model of the business enterprise – the theory of the firm
1.4 Forms of business organisations
the main features of the following forms of business ownership:
- sole proprietorships
- partnerships
- limited liability partnerships
- companies
- co‐operatives
1.5 Financing the business
why businesses need financing
the common financing options available to businesses
Understand business organisation and functions in relation to insurance.
Chapter 2 Business organisation and functions
2.1 Operational structures
ways of organising operational structures, including its advantages and
disadvantages:
- function
- product lines
- area / region
- customer type
- holding company
- matrix
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the structure of a holding company
2.2 Bureaucracy – the underlying concept
the underlying principles relating to bureaucracy
some recent developments and thinking relating to organisational structures
the different managerial roles in an organisation
the concept of power in organisations and the different sources of power
2.3 Organisational culture
the different types of organizational cultures
the implications of organisation culture on business
Understand the management of insurance businesses.
Chapter 3 Management
3.1 Board of Directors
the roles of the Board of Directors and how they relate to the functions of the
business
the advantages of having a Strategic Board
the roles of the key Board Committees
3.2 Management
the roles and responsibilities of managers and how these can improve business
results
the key challenges facing managers in business
the roles of managers to the three levels of management
3.3 Planning
the importance of planning in the management of business
the fundamental elements of business plans
3.4 Decision‐making
the main types of decision‐making in business
the decision making process
3.5 Management information
the role of information management in organisations
data and information
the common information technologies used to support businesses
3.6 Knowledge management
what knowledge management is and how it may be used to improve business
performance
3.7 Leadership styles
the differences between management and leadership
the different leadership styles
the advantages and disadvantages of each style in given situations
the various types of models used in identifying effective leadership
3.8 Roles and responsibilities of non‐managerial staff
the key roles and responsibilities of non‐managerial staff
where the roles of non‐managerial staff fit into organisations
Understand the human resource management functions within insurance organizations.
Chapter 4 Human resource management
4.1 Scope of human resource management
the link between human resources and business strategy
the fundamental processes in human resources management
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4.2 Employee‐employer relationship
the importance of good relationships between employer and employee
the importance of trust in managing the employee‐employer relationship
4.3 Motivation and staff morale
what employee motivation is
the implications of motivation on employee performance and satisfaction
the theories relating to motivation:
- Maslow’s Hierarchy of Needs Theory
- Motivation‐Hygiene Theory
- Expectancy Theory
- The Motivation‐Performance‐Satisfaction Relationship
the consequences of dissatisfaction
4.4 Employee involvement and participation
the methods by which positive employee involvement and participation may be
obtained
4.5 Group behaviours and effectiveness
the primary factors that influence team behaviours and effectiveness
4.6 Recruitment and selection
the recruitment and selection process
4.7 Performance review and appraisal
the performance management process
4.8 Training and development
the various types of learning
the key areas that training needs to cover
the steps involved in implementing a training and development programme
the benefits and main methods of training and development
4.9 Legislation for the workplace
the main requirements of the following workplace legislation:
- Employment Act
- Workplace Safety and Health Act
- Work Injury Compensation Act
Understand the main aspects of corporate law.
Chapter 5 Corporate law
5.1 Statutory and regulatory framework for companies
5.2 Incorporation of companies
the legal effects of the incorporation of a company
the different types of companies
a business organisation’s obligation to incorporate and the process involved in
incorporation
the concept of ‘corporate veil’ and the circumstances under which the corporate
veil is lifted
5.3 Membership
who is a member
5.4 The memorandum and articles of association
the purposes and contents of a company’s memorandum and articles of
association
the provisions for amendments to the memorandum and articles of association
5.5 Statutory reporting requirements
the various statutory reporting requirements for companies
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5.6 Statutory meetings and their importance
the various statutory meetings and their importance
5.7 Agenda and notice of meetings
the purpose of notice of general meetings and the administrative requirements
imposed on the notice
the types of resolutions passed at general meetings
5.8 Company directors, secretary and auditors
the statutory requirements for directors of a company in terms of qualifications
and disqualification, vacation of office and removal, and remuneration
the roles and duties of company directors and the company secretary
5.9 Audit
the definition and purpose of an audit
the key stages of an audit
the features of a financial audit
the uses of internal and external auditors
the common types of auditor’s reports
Understand contact centre operations in relation to insurance organizations.
Chapter 6 Contact centre operations
6.1 Customer relationship management
6.2 Roles of contact centres
6.3 Structure and driving forces of contact centres
6.4 Contact centre infrastructure and technology
the infrastructure and technology of contact centres
6.5 Quality
the different ways of monitoring the performance of contact centres
6.6 Performance management
the basic functional components of performance management
the benefits of performance management
the key factors in building a successful performance management programme
6.7 Workload management, forecasting and staff schedule modelling
the various reports, formulas and staff scheduling models used in the
management of staff workload and capacity
6.8 People management
the importance of people management for contact centres
the evolving roles of the contact centre manager
6.9 Procedures and working guidelines
the good working practices and procedures at contact centres
Understand the role of underwriting in insurance company operations.
Chapter 7 Underwriting
7.1 Basic principles of underwriting
the purpose of insurance and how underwriting relates to the insurance business
the definition of underwriting
the importance of the underwriting function in an insurance company
7.2 The underwriting process
7.3 Underwriting policy consideration
the purpose of insurance applications and proposal forms, and the elements
contained in proposal forms
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the main considerations in underwriting policy
the rules for constructing an insurance policy
the key elements of an insurance policy
the concept of underwriting authority and making referrals
7.4 Pricing
the key considerations in determining the pricing of insurance products
7.5 Management of exposures
the implications of risk accumulation
how reinsurance can help an insurance company manage its risk exposure
the basic forms of reinsurance
the authority to place reinsurance
7.6 Budgeting and monitoring results
budget and cash flow forecast
the key measures of an insurance company’s performance
Understand the role of claims in insurance company operations.
Chapter 8 Claims
8.1 Goals of the claims function
8.2 Organisation of the claims department
8.3 Claims handling process
the claims handling process and the key requirements
the specific claims information required for the different classes of insurance
the claims evaluation and investigation approaches and processes
the difference between claims adjudicators and claims adjusters
the purpose of engaging external adjustors
8.4 Key claims management considerations
the key claims management considerations in terms of:
- managing the claims experience
- managing the claims cost
- leveraging the learning experience across the entire organisation
8.5 Claims cost management
the concept of ‘claims reserve’
the principles of setting case reserve
the purpose of Reserve Adequacy and Reserve Reconciliation Reviews
ex‐gratia payments and the method used in lieu of ex‐gratia payments
punitive or exemplary damages
claims fraud and the reasons for fighting fraud
how might claims fraud be identified
the functions of a Third‐Party Administrator
8.6 Quality assurance and review
the importance of having a strong claims review programme
Understand the marketing function within insurance organizations.
Chapter 9 Insurance marketing
9.1 Definition of marketing
what marketing is
the marketing concept
the needs and wants of customers
the role and benefits of marketing
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9.2 Traditional marketing mix
9.3 Product development
what a product is
the components of a product
the product development process
9.4 Marketing information and research
the purpose and main methods of market research
9.5 Promotion and advertising
what promotion is and the main promotional channels
the main objectives and targets of promotion
what advertising is
the advantages and disadvantages of advertising
9.6 Public relations
the purpose and objectives of public relations
how public relations are used to present a positive organisational image
9.7 Customer relationship management
9.8 Unique characteristics of insurance marketing
the unique characteristics of insurance products
9.9 Overview of insurance product marketing
why the need for insurance services arises
a common approach adopted by insurance companies in marketing
9.10 Traditional distribution systems for insurance
9.11 Convergence of insurance marketing systems
9.12 Alternative insurance distribution channels
9.13 Insurance product pricing
the factors in influencing the pricing of insurance products
Understanding financial statements – the purpose of financial accounting, the basic
financial concepts, the objectives and components of financial statements, the users of
financial reports, accounting standards and principles, elements of financial statements
and an insurer’s financial statements.
Chapter 10 Building an understanding of financial statements for insurance
professionals
10.1 Purpose of financial accounting
10.2 Basic financial concepts
10.3 Objectives of financial statements
10.4 Components of financial statements
10.5 Users of financial reports
10.6 Accounting standards and principles
the key assumptions underlying the preparation of financial statements
the accounting equation
the treatment of receipts and payments in financial accounting
the qualitative characteristics of financial information
the constraints to quality information in the preparation and presentation of
financial statements
the purpose and function of management accounting
10.7 Elements of financial statements
the balance sheet structure
the two major elements of income statement: income and expenses
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the principles involved in constructing an income statement: revenue recognition
and matching
the cash flows from the company’s operating, investing and financing activities
the relationship between profit and cash flow
the statement of changes in equity and the notes to the financial statements
10.8 Financial statements of an insurer
the items on the balance sheet which are most peculiar to an insurance entity:
technical balances and deferred acquisition cost
the key aspects of the income statement of an insurer
the relationship between revenue account and income statement
the following insurance fund concepts:
- shareholders’ fund
- insurance policyholder fund
Interpret financial statements and understand the concept of budgeting.
Chapter 11 Interpretation of financial statements and budgeting
11.1 Interpretation of financial statements
the uses, limitations and key techniques of the financial ratio analysis in
understanding a company’s financial performance and financial position
the following types of financial ratios:
- profitability ratios
- liquidity ratios
- activity / efficiency ratios
- gearing / leverage ratios
- market / investment ratios
the following types of financial ratios for insurers:
- underwriting ratios
- return ratios
- liquidity ratios
- capacity ratios
- growth data
the situations involving interpretation of financial statements by insurance
professionals
11.2 Budgeting
the concept of budgeting and the budget planning process
the role of budgeting in business control and variance analysis
the advantages of budgeting
the budgeting process
the main methods of budgeting
Understand the main aspects of corporate governance.
Chapter 12 Corporate governanace
12.1 The importance of corporate governance
what corporate governance is
12.2 Key aspects of corporate governance
the key models of corporate governance
the importance of corporate governance principles and codes
the regulatory approaches to promoting good corporate governance
12.3 Corporate governance in Singapore
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the key aspects of guidelines and regulations on corporate governance in
Singapore
12.4 Corporate social responsibility
what corporate social responsibility is and its benefits
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