Introducing the Core Curriculum A Resource for Insurance Supervisor and Industry Capacity Building

What is the Core Curriculum? A comprehensive set of structured, learning oriented modules designed for insurance supervisors that can be used flexibly to train and develop capacity.

Brief background to the development The World Bank partnered with IAIS in Elaborated a structure for a core curriculum based on insurance core principles. Identified existing literature and noted it was very limited and not oriented to supervisory needs. IAIS efforts to develop textbooks had been ongoing but had not had great success due to reliance on volunteer resources.

About the process - Rigorous Authors nominated by IAIS Task Force, wider membership, and some observers. Very high quality of nominees –Senior supervisory experts –Technical experts from supervisory agencies & markets –Academics Team selected to ensure variety of backgrounds so that no one system or approach should be given undue weight. At least one reviewer had to be a currently practicing supervisor Interaction between reviewers and authors throughout. Ultimate sign off by reviewers Overall common oversight provided by experienced expert former supervisors with good understanding of IAIS.

About the process - Validated Following robust development process, pilot seminars validated “it actually works”. –Very positive response in seminar assessments –Benchmarked against wide range of financial sector training initiatives. Result: Confident that material is high quality, versatile, easy to use, and relevant.

What is in the box? Introductory brochure with explanation for user One CD Rom containing all the material –36 Modules –Teaching Notes –Case Studies

How are the modules presented? Introduce Core Curriculum Introduc e Material to learner Learning Objectives Pr e Te st Multiple Units Multiple Units Un it Identify Learning Focus Learning Material Examples Case Studies Localization Exercises Pos t Test

What is the technical syllabus? Every ICP has at least one module The following ICPs have more than one module –ICP12 – Financial Reporting and Off Site Analysis A – An introduction to insurance accounting B – Non Life Company Analysis C – Life Company Analysis D – Qualitative Analysis E – Reports to the Supervisor –ICP18 – Risk Management A – Fundamentals B – Management of Key Risks –ICP19 – Insurance Activity A - Basic Statistical Approach to Insurance B – Reinsurance –ICP22 – Derivatives A – Introduction to derivatives B – Use of Derivatives by insurers –ICP23 – Solvency A - Solvency principles and structures B - Solvency Assessment

How can it be used? Self paced learning Internal group programs for staff Intensive seminar based programs in the supervisory agency Regional Seminars Comprehensive full curriculum programs over a period of years As part of Tailored Technical Assistance Programs As a resource when upgrading supervisory and regulatory practices

An Example of an Individual Self Paced Approach for a New Analyst ICP and Module Module NamePurpose 12 AIntroduction to Insurance Accounting For those with no insurance background who need to understand basic insurance accounting concepts 12 B or CNon Life or Life Insurance Financial Analysis To introduce the financial analysis tools relevant to the company they are going to review. 12 DQualitative AnalysisTo introduce the non financial analysis techniques A popular launching pad. Self paced individual learning or group work most likely.

followed by Why are we here? ICPs 2-5 on the supervisory system and process. More technical issues? ICPs include detailed modules on key topics (assets, reinsurance, liabilities, etc.) Specific Supervisory Tasks? For example, ICP6: Licensing, ICP7: Suitability of Persons, ICP8: Change of Control Etc. Individual self paced learning can be used but group learning, regional events, etc can be more valuable.

When you put the CD in … Option 1 – it starts by itself Option 2 – in some cases you may have to start it. –Go to “My Computer” then select the drive. –Open the file (double click on StartHere.exe)

Navigation Tabs Option to Access Material by ICP Grouping Here Link to IAIS Insurance Core Principles

Provides further information to introduce the Core Curriculum Emphasizes relevance to supervisors Highlights flexible ways the modules can be used for training Includes suggested self paced approach for individual learning Same material as is in the enclosure “About” Tab

Provides access to each module, teaching note, and case study Set out in the same order as the ICPs “Modules” Tab “Module” Link“Teaching Note” Link “Case Study” Link

For example “Module” Link for “Suitability of Persons” calls up the module in acrobat pdf format

Five detailed case studies were prepared using the HIH example “Cases” Tab An overall Teaching Note and Background Note provide guidance for using all case studies Successive “rounds” simulate real decision making

“Contact” Tab Who to contact What to do if you want to use the material and need to obtain copyright permissions

Future use of the material World Bank will be using the material through WBI and country Technical Assistance initiatives Others can be expected to make use of the material –Internal supervisory training programs –Regional seminars –Technical Assistance providers Wider IAIS Training Strategy in progress

Thank you Craig Thorburn Senior Financial Sector Specialist The World Bank