UNDERWRITING AND CLAIMS MANAGEMENT

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN225369
Module Leader Michael Zboron
School School of Computing, Engineering and Built Environment
Subject GCU London
Trimesters
  • A (September start)
  • B (January start)
  • C (May start)

Summary of Content

The aim of this module is to provide the student with an in-depth knowledge of the underwriting and claims functions within an insurance company. This includes an understanding of what underwriting entails, how underwriting is organised and what pricing techniques are available to underwriters. In terms of the claims functions, students will learn how insurance companies organise claims handling and what regulatory requirements exist in respect of the prompt and fair handling of claims including the prompt settlement of claims. Furthermore, students will gain an understanding of an insurer's claims strategy and claims reserving principles, including actuarial techniques.

Syllabus

Part A -360 1. Theories of risk underwriting, principles, processes and ethical considerations 2. Theoretical frameworks for rate making and pricing methodologies 3. Theories, tools and techniques in personal lines underwriting 4. Theories, tools and techniques in commercial insurance underwriting 5. Theories, tools and techniques in in marine and aviation insurance underwriting 6. Underwriting Strategy and Portfolio Management Part B -360 7. Theories, principles and ethical issues in claims management 8. Claims Functions and Regulations 9. Financial aspect of Claims Management 10. Principles and Practice of Claims Reserving 11. Claims Analysis and Decision Making 12. Claims Management Strategy

Learning Outcomes

On successful completion of this module, students should be able to:-1. Evaluate the theory and principles of underwriting [CW1]2. Analyse the principles and practices of insurance risk pricing [CW1]3. Evaluate the technical aspects of underwriting portfolio management [CW1]4. Evaluate applied underwriting techniques in business lines - personal and commercial [CW1]5. Evaluate underwriting strategy, policy, practice and culture of ethics and professionalism [CW2]6. Evaluate the claims management functions [CW1]7. Evaluate the impact of regulations for the claims functions [CW1]8. Evaluate the corporate claims strategy, philosophy and culture of ethics and professionalism [CW1]9. Evaluate the financial impact of the claims strategy to the organisation [CW1]10. Evaluate the principle of claims reserving [CW1]

Teaching / Learning Strategy

The learning and teaching strategy uses a blended approach of lectures, tutorials, labs and directed learning supported by GCU Learn. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students are expected to prepare for following week's lectures on each topic by engaging in literature searches, undertaking relevant reading and where necessary, attempt computational questions. Every student will receive a comprehensive study guide in the form of a module handbook. The lectures will adopt a variety of teaching styles including seminar style contributions such as group discussions to enhance intellectual, critical and analytical skills. For more applied topics, students will be required to attempt relevant problem or scenario based questions prior to the lectures, providing the basis for deepening professional skills, knowledge and understanding. The lab sections will provide the medium for gaining practical skills through the use of spreadsheets to explore the lecture themes in more detail. Spreadsheet solutions and solutions to quantitative questions will be available on GCULearn. All students will be directed to further reading to support the theoretical and practical contents of the module.

Indicative Reading

Laura, C (2017) "Advanced Underwriting", Chartered Insurance Institute, Study Text (960) Philip, P. and Mark, W. (2018) "Underwriting Practice", Chartered Insurance Institute, Study text (M80) Dionne, G. ed., (2013) "Handbook of Insurance", 2nd edition, Springer and Geneva Association, Zweifel, P., and Eisen, R. (2012) "Insurance economics", Springer Rowbotham, M. J. (2014) "Introduction to Marine Cargo Management", Second edition. Oxon: Informa Law from Routledge Gooda, Ed (2017) "Advanced claims, Study text, Chartered Insurance Institute, London Beverley, L. and Will, C. (2017) "Strategic Claims Management", Chartered Insurance Institute, Study Text (996) Samantha, J. and Ben, R. (2016) "Claims Practice", Study text, Chartered Insurance Institute, London Hindley, D. (2017) "Claims Reserving in General Insurance", Cambridge University PressFred, C. (1997) "Effective Techniques for Managing and Handling Insurance Claims: A Practical Guide to Handling Personal and Commercial Claims", Thorogood Publishing Ltd., London Hudson, N. G. and Allen. J. C. (1984) "Marine Claims Handbook", Lloyd's of London Press, London Newspapers and Magazines: Insurance Journal at <https://www.insurancejournal.com/> Business Insurance at <https://www.businessinsurance.com/> Best's Review at <http://www.ambest.com/review> Newsweek Global at http://www.thedailybeast.com/ <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fwww.thedailybeast.com%2F||type~~','');> Claims at http://www.claimsmag.com/ <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fwww.claimsmag.com%2F||type~~','');> The Journal [official magazine of the Chartered Insurance Institute] Insurance Advocate at http://cms.nationalunderwriter.com/cms/ia/website <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fcms.nationalunderwriter.com%2Fcms%2Fia%2Fwebsite||type~~','');> Risk Management at http://www.rmmag.com/ <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fwww.rmmag.com%2F||type~~','');> Financial Times at www.ft.com <http://www.ft.com> The Wall Street Journal at www.wsj.com <http://www.wsj.com> The Insurance Times at www.insurancetimes.co.uk <http://www.insurancetimes.co.uk> Journals: Journal of Insurance Regulation European Journal of Risk Regulation Geneva Papers on Risk and Insurance - Issues and Practice Asia-Pacific Journal of Risk and Insurance Journal of Risk Research Journal of Risk and Insurance Journal of Risk and Uncertainty Risk Management and Insurance Review Risk Analysis: An International Journal Journal of Insurance Issues Connecticut Insurance Law Journal Internet Sites Geneva Association at www.genevaassociation.org <http://www.genevaassociation.org> European Insurance and Occupational Pensions Authority (EIOPA) at www.eiopa.europa.eu <http://www.eiopa.europa.eu> International Association of Insurance Supervisors (IAIS) at www.iaisweb.org Bank of England at www.bankofengland.co.uk <http://www.bankofengland.co.uk> Financial Conduct Authority (FCA) www.fca.org.uk <http://www.fca.org.uk> ARTEMIS at www.artemis.bm <http://www.artemis.bm> Association of British Insurers (ABI) at www.abi.org.uk <http://www.abi.org.uk> Chartered Insurance Institute (CII) www.cii.co.uk <http://www.cii.co.uk> The Insurance Institute of London at www.iilondon.co.uk <http://www.iilondon.co.uk> Insurance Information Institute at www.iii.org <http://www.iii.org> CRO Forum www.thecroforum.org <http://www.thecroforum.org> Database for Research: A M Best Axco Insight Compliance Insurance Law Database [i-law] Insurance Intelligence Centre GlobalData Thomson Reuters DataStream and EIKON

Transferrable Skills

This module will develop the following skills in a manner that encourages independent initiative and critical thinking: -360b7 Personal and interpersonal skills -360b7 Oral and written communication skills b7 Data gathering, analysis and interpretation b7 Use of Excel and Models for data analysis b7 Problem solving and critical Thinking b7 Ability to work independently b7 Research skills in order to complete the courseworks As a part of the broader transferable skills students will be able to demonstrate: -360 1. Advanced knowledge in the subject area. 2. Advanced usage of computers and associated software as a learning tool to explore models, ideas and for problem solving.

Module Structure

Activity Total Hours
Independent Learning (FT) 72.00
Lectures (FT) 24.00
Tutorials (FT) 2.00
Assessment (FT) 40.00
Seminars (FT) 12.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 02 n/a 70.00 45% 3,000 words written analytical report [individual submission for both on-campus and distance learning students]
Course Work 01 n/a 30.00 45% A PowerPoint presentation on a selected scenario based problem or topic [individual submission for both on-campus and distance learning students]