9 CPE credits are available for the successful completion of this course
Course cost to non-designation students – $1050
The fundamentals of risk management and insurance are the foundation upon which the captive insurance industry has been built. In this course participants will focus on “risk”: what it means, how it is managed, and how it can be financed. The objective is to understand the element of risk that must be present if risk it to be managed using an insurance mechanism, and how insurance differs from other risk financing mechanisms.
To understand the role of the captive as an alternative risk financing mechanism, it is necessary to begin with an understanding of the overall purpose and process of organizational risk management and the difficulties encountered when identifying and quantifying the impact of operational risk on an organization. The captive can be used to facilitate the management of operational risk. Its use in the risk management process improves the ability to quantify risk and provides an incentive to control its financial impact. Participants will examine how a captive contributes to the process of managing operational risk.
The captive’s second role in the risk management process is to assist in financing risk. Risk can be financed using non-insurance or insurance techniques. Organizations that retain risk may choose to self-finance it, which reduces some risk financing costs but eliminates some of the benefits they derive from insurance. To persuade large commercial buyers to continue to use insurance, traditional insurers offer a variety of cash flow and profit sharing insurance plans. These risk financing solutions may provide some of the advantages of self-insurance, but the insured may lose some of the benefits on insurance. Captive insurance is designed to maintain the advantages of self-financing and insurance without the disadvantages of commercial insurance.
Participants will examine the use of a captive for retention management, the operating cost differential between self-insurance, commercial insurance, and captive insurance.
In addition to self-paced reading and assignment work, students will be required to attend five webconference sessions and complete one week of follow up assignments. There are no prerequisite requirements for this course. Prior to the first webconference participants need to access Canvas to review webconference directions and course material.
Webconference one, from 12:00 noon – 1:15 p.m. ET
Webconference two, from 12:00 noon – 1:15 p.m. ET
Webconference three, from 12:00 noon – 1:15 p.m. ET
Webconference four, from 12:00 noon – 1:15 p.m. ET
Webconference five, from 12:00 noon – 1:15 p.m. ET
The course will be offered again in the Fall 2023.
For further details please contact at ICCIE at 802-651-9050.
International Center for Captive Insurance Education (ICCIE) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org
In accordance with the standards of the National Registry of CPE Sponsors, CPE credits have been granted based on a 50-minute hour.