INTERNATIONAL INSURANCE MARKETS, ACCOUNTING AND REGULATIONS

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN325367
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 assist students in gaining a clear and consolidated understanding of how insurance markets function and how these markets fit into the wider and global economy. In addition, students will gain an understanding of how insurance is being regulated from a prudential and conduct perspective. This will include a more detailed analysis of some of the most important regulatory regimes, such as European Solvency II and/or the Chinese C-ROSS system. Furthermore, students will be provided with an overview of insurance law and how this influences product design. Accounting for insurance companies and insurance products and why and how this differs from general corporate accounting rules are discussed. The students will gain technical skill relevant to analysing general (non-life) insurers' financial statements. Lastly, the aspects of both mandatory and voluntary financial and non-financial (e.g., ESG factors) disclosures (or reporting) for insurance companies are added in the module contents.

Syllabus

-360 1) Theory and Principles of Insurance Markets and Regulations 2) Insurance economics and market structure 3) Theory of intermediation and evolving insurance distribution channels 4) Theory of regulation and international insurance regulatory framework - consumer protection 5) International Insurance Regulatory Framework - Prudential Solvency 6) Legal Aspects of Insurance and Insurance Law 7) Designing insurance contracts, application of contract wordings and ethical constructs 8) Insurance Companies Financial Statement 9) Developments in the theoretical framework underpinning fair value accounting and its applications in insurance - IFRS 9, IFRS 17 10) Analysis of Insurance Companies Financial Statement 11) Financial and Non-Financial Disclosures and Ethical Considerations 12) Insurance core principles and the harmonisation of insurance accounting and regulations

Learning Outcomes

On successful completion of this module, students should be able to:-1) Evaluate the theory of insurance market regulations [CW1, CW2]2) Evaluate insurance market economics and structure (oligopoly, monopoly, perfect market competition, etc.) [CW1]3) Prudential regulation structure vis-a- vis market conduct [CW1]4) Evaluate distribution channels and consumer centric regulatory structure [CW1, CW2]5) Evaluate cross boarder and international regulatory, supervisory and legal issues [CW1, CW2]6) Analyse IASB (International Accounting Standards Board) and IAIS (International Association of Insurance Supervisors) and initiatives in respect of the harmonisation of insurance regulations [CW1, CW2]7) Impact of solvency regulation on insurers risk capital and asset allocation [CW2]8) Understand the application of international law and accounting practices to insurance markets [CW1, CW2]9) Evaluating Insurance Companies Financial Statements, Fair Value Accounting and Disclosures [CW1, CW2]10) Evaluate Insurance laws and regulations relevant to design insurance contracts [CW1, CW2]

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

Biggs, J. H. and Richardson, M. P. (2014) "Modernizing Insurance Regulation", 1st edition, Wiley Dorf R. (2014) Solvency II handbook: practical approaches to implementation, London: Risk Books. Burling, J. and Lazarus, K., ed., (2011) "Research Handbook on International Insurance Law and Regulation", Edward Elgar Publishing Ltd., Cheltenham Dreher (2015), Treatises on Solvency II. Heidelberg: Springer. Sandstro?m, A. (2011) "Handbook of Solvency for Actuaries and Risk Managers: Theory and Practice", CRC Press: Taylor & Francis Group, Doff, R. (2011) "Risk Management for Insurers: Risk Control, Economic Capital and Solvency II", Second Edition, Risk Books, London Buckham, D., Rose, S. and Wahl, J. (2011) "Executive's Guide to Solvency II", Wiley & SAS Business Series.Dionne, G. ed., (2013) "Handbook of Insurance", 2nd edition, Springer and Geneva Association, Van der Linde D,and Unger B. (2013), Research handbook on money laundering. Cheltenham: Edward Elgar Publishing. Geoffrey et al. (2016), A practitioner's guide to Solvency II. (eds.). London: Thomson Reuters. Bullard, M. J. (2013) "Insurance Accounting: Insurance Accounting, 1st Edition, CreateSpace Independent Publishing Platform Zweifel, P., and Eisen, R. (2012) "Insurance economics", Springer Insurance corporate management. London: CII. Study text 990. Insurance business & finance. London: CII. Study text M92. Insurance, legal and regulatory. London: CII. Study text IF1. 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> 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 and Insurance Risk Management and Insurance Review Journal of Insurance Issues Connecticut Insurance Law Journal International Journal of Disclosure and Governance 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 Insurance Information Institute at www.iii.org <http://www.iii.org> UNEP FI Principles for Sustainable Insurance at www.unepfi.org/psi <http://www.unepfi.org/psi> UN Principle of Responsible Investment at www.unpri.org <http://www.unpri.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
Seminars (FT) 12.00
Assessment (FT) 40.00
Independent Learning (FT) 72.00
Lectures (FT) 24.00
Tutorials (FT) 2.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 02 n/a 60.00 45% 3,000 words of written analytical report [individual submission for both on-campus and distance learning students]
Course Work 01 n/a 40.00 45% 1,500 words of written report on a problem [individual submission for both on-campus and distance learning students]