Programme Highlights

This is a virtual course on Alternative Risk Transfers. In part 1 of the presentation, it will cover why insurance organisations need capital and outline the three common types of capital. In part 2, it will discuss the purpose of using reinsurance, an introduction to Alternative Risk Transfer (ART), an example of insurance linked securities, the advantages and disadvantages of ART and the future of ART. In part 3, the risk financing options will be examined, as well as the implementation of these options including their evaluation criteria.

For Whom

• Insurance and reinsurance underwriters and/or claims personnel seeking to understand the nature and operation of ART.
• Also suitable for insurance and reinsurance brokers

Key Learning Objectives

At the end of the course, the participants should be able to : 

• Know the different types of capital used in insurance. 
• Understand the definition and use of reinsurance. 

      - understand the application of index linked insurance

• Appreciate the different types of alternative risk transfer mechanisms. 

Programme Outline

Part 1 – Introduction to RBC

• Why do we need capital?
• Risk Based Capital Overview
• Capital Adequacy Ratio

Part 2 – Alternative Reinsurance Structures 

• Why Reinsurance? 

      - Introduction to Index linked insurance

      - Difference between Index linked insurance and traditional insurance

      - Examples and use cases of Index linked insurance

Part 3 - Alternative Risk Transfer (ART)

• Introduction to Alternative Risk Transfer (ART) 
• Insurance Linked Securities – e.g., CAT Bonds 
• Advantages and Problems of ART 
• Future of ART