GUERNSEY INTERNATIONAL INSURANCE MANAGEMENT COURSE

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MODULE A

INTRODUCTION

UNIT 1

WHY, WHAT AND WHERE

UNIT 2

Definition- What is a captive insurance company
Background to development
Why not just self-insure
Basic features
Association captives
Joint interest captives and Mutual pools
Protected Cell companies
Incorporated Cell companies
Benefits and advantages of captives
Other alternatives to traditional insurance

UNIT 3

Domiciles

Onshore
Offshore
EU captive domiciles
Features of most popular domiciles
Guernsey

MODULE C

ESTABLISHING AND EXITING

UNIT 4A

Feasibility study

Who should consider a captive
Criteria for a captive
Who should do the study
Pre-feasibility – Identifying the problem
Choosing the retention levels
Contents of the study
Cost of the study
Evaluation the study
Selling the concept internally
Access to the feasibility study

UNIT 4B

Initial decisions in setting up a captive

Own staff or Management company
Choosing a manager
Management company criteria
Choosing the domicile
Choosing the board of directors
Name of the company
Lawyers
Banking and investment
Auditors
Capitalisation
Initial Business plan
First board meeting

UNIT 4C

Step plan for company formation and licencing

UNIT 4D

Exit strategies

Reasons for exit
Methods for exit
Methods of closure

MODULE D

LAW & REGULATORY FRAMEWORK

UNIT 5

Guernsey Insurance Law

Authorisation
Minimum criteria for licensing
Directors and General representative
Supervised roles
Financial requirements
Appointment of actuary
Annual accounts
Auditors
Annual return
Significant shareholding

UNIT 6A

The Regulatory Environment

Guernsey Financial Services Commission
The Insurance Business Rules and Guidance 2021
The Cyber Security Rules and Guidance 2021
Regulations
Codes
Guidance note on Reinsurance
Producer owned (re)insurance companies (PORC and POIC)
Guidance note on notifications to the GFSC

UNIT 6B

Solvency

Rules
License Categories 1 to 6
Capital adequacy
MCR
PCR
Life business
Internal model
Valuation
Investment
Risk management & Own Risk Solvency Assessment (ORSA)
Green assets
OSCA methodology
Supervisory ladder of intervention

MODULE E

MANAGEMENT SERVICES

UNIT 7

The Insurance Manager

Role of the manager
Accounting and finance
Underwriting
Reinsurance
Claims handling
Board meetings
Company secretarial services
Anti money laundering
Statutory returns
Corporate governance
Compliance
General representative
The management agreement

MODULE F

INSURANCE

UNIT 8A

Underwriting - General Business

Property Insurance & Business Interruption
Public and Products Liability
Employers liability / Workers compensation
Professional Indemnity
Marine
Motor
Credit and Political Risk
Mortgage Indemnity Guarantee
Bankers Blanket bond
Guarantee bonds
Fidelity guarantee
Directors and Officers
Handling uninsurable risk

UNIT 8B

Underwriting - Employee Benefits

Typical structure
Why some groups may not use a captive
Determinants for success of an employee benefits captive
Alternatives

UNIT 8C

Credit Ratings - use and applications

How credit rating add value
Rating agencies and advisors
Initial rating and monitoring service
Multiple credit ratings
Rating agency regulation

UNIT 9

Insurance policy administration

Direct writing
Rate setting
Policy wordings
Role of Fronting
Fronting fees
Fronting reinsurance agreement
Security for fronting company
Security for the reinsured

UNIT 10

Reinsurance Protection

Basics of the reinsurance market
Why do captives reinsure
Methods of reinsuring
Who makes up the market
How to approach the reinsurance market
Criteria for selection of reinsurers
Reinsurers considerations regarding captives
Underwriting criteria applied by reinsurers

UNIT 11

Claims and reserving

Claims handling -direct writing
Fronted
Claims reserving

MODULE G

ACCOUNTING AND FINANCE

UNIT 12

Accounting

Income and expense sources
Technical accounts
Difference between financial accounts and underwriting statistics
Profit and Loss account
Balance sheet
Budgets
Bank accounts
Currency risks

UNIT 13

Investments and Loans

What is the source of an insurance company assets
Liquidity
Why does an insurance company invest it assets
Why not leave all funds in cash deposits
Money brokers
Investments other than fixed deposits,CDS or FRNS
Corporate and Government bonds
Equities
Mark to market
Risk versus reward
Loans
Solvency

MODULE H

TAXATION

UNIT 14

Fiscal matters

Types of tax
Tax issues to consider in the feasibility study
Tax and commercial reasons for a captive
Tax consequences to be investigated
Tax essentials
Insurance Premium tax
Current tax issues that impact captives
Controlled Foreign Companies (CFC)
Diverted profits tax
OECD Transfer pricing
Base erosion and profit sharing (BEPS)
Economic and Tax Substance

MODULE I

BOARD OVERSIGHT AND CONTROLS

UNIT 15

Compliance

Role of the compliance officer
Compliance framework – Three lines of defence
AML/CFT
Data protection (GDPR)
Cyber Security
Annual schedule and meeting checklist

UNIT 16A

Governance

Board of directors – role, responsibilities and liability
Strategy, risk appetite and oversight
Composition, conduct and remuneration of the board
Reporting and governance framework
Risk management framework
Control functions, – Risk management, Compliance, Actuarial and Internal audit
Outsourcing

UNIT 16B

Business conduct, ethics and ESG

Regulation of business conduct
Retail insurance business
ESG and the GIIA framework

MODULE J

OTHER SERVICE PROVIDERS

UNIT 17A

Banking

Matters that will influence the choice of banks

UNIT 17B

Auditors

Matters that will influence the choice of auditor

UNIT 17C

Asset management

Role of the Insurance Manager v’s Investment Manager
Cash management /money broker

UNIT 17D

Insurance and Reinsurance brokers

Role of insurance broker v’s reinsurance broker

UNIT 17E

Actuaries

Role
Analysis of data
Presentation of results
Reserves and audit review
Setting premium rates
Internal and external appointment of actuaries
Limitations on the use of actuaries
Role of actuaries for Life business

UNIT 17F

Claims handlers , lawyers and loss adjustors

Claims handlers
Lawyers
Loss adjustors
Reinsurers interests

UNIT 18

Company Secretary

Role
Minutes
AGM,EGM and board meetings
Written resolutions
Shareholder special resolutions
Company records
Returns
Resident agent

MODULE K

INTERNATIONAL INSURANCE OPERATIONS OTHER THAN CAPTIVES

UNIT 19