AGRICULTURAL INSURANCE



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AGRICULTURAL INSURANCE OVERALL DESCRIPTION Agricultural insurance is one tool to manage the risks that may arise in agricultural production, which will actively be used by financial intermediaries to hedge the financing of agricultural products. This training outlines the importance of using different insurance options in the agricultural sector and managing risks both on the client site and the site of a financial institute. The participants will learn how to use different products in the field of agricultural insurance and how to monitor the credits. After the course, the participants will be able: To understand and to use agricultural insurance products To design and to introduce new products on agricultural insurance To manage the risks of the insurance products Different agricultural products and their features Nature of agricultural lending: international best practice and Ethiopian lending practice Finance structure schemes for agricultural products Agricultural insurance products and schemes Procedures in agricultural finance Main risks in agricultural finance Modern tools for risk diversification and risk management techniques Insurance of agricultural products Pricing of agricultural insurance products Coverage level Insurance policies and regulations: international best practices and Ethiopian practice This training program is designed for agents from insurance companies and MFIs new to the agricultural insurance business 4 half days 1

PRINCIPLES AND PRACTICE OF INSURANCE The aim of this course is to enable participants acquire knowledge about the legal principles of insurance along with relevant insurance documents to be used in daily operations. Nature of insurance contract Basic principles of insurance Utmost Good Faith Indemnity Subrogation Contribution Insurable Interest Proximate Cause Nature and structure of insurance documents Underwriting Insurance procedures Claims procedures Underwriting clerks Claims clerks Pre-service trainees Non-life insurance sales agents 10 half days 2

PROPERTY & PECUNIARY INSURANCE The overall objective of the course is to enable participants identity and understand the various categories of property insurance policies and have through knowledge of risk assessment, management and loss control procedures. Types of property insured Various sub-classes of businesses considered under Property Insurance Perils insured against Perils excluded from cover Policy provisions and conditions Risk assessment, risk management and loss prevention Underwriting and claims processes Arrangement of cover General Insurance: Underwriters Claims handlers Risk assessors Claims inspectors Supervisors 11 half days 3

MOTOR INSURANCE The course aims to enable participants acquire knowledge and skill on the statutory background, types and classification, underwriting and rating factors and claim processes of motor insurance. Legal considerations Classification of motor insurance policies Principles of underwriting and rating factors Scope of cover, exclusions, conditions, extensions and additional benefits Claims procedures Under writing Clerks Supervisors Claim operators Insurance inspectors 11 half days 4

LAW RELATED TO INSURANCE The course aims to build upon and extend the trainees capacity and knowledge of law applied to insurance. Contracts Non-contractual obligations Remedies Insurance law Review of liability insurance Staff involved in underwriting and claims operations Insurance inspectors Legal personnel 10 half days 5

RISK MANAGEMENT & INSURANCE After the course the trainee will be able to understand and identify different risks and risk management techniques. Meaning of risk Classification of risk Cost of risk Management of risk Underwriters Claim handlers Risk assessors & managers Insurance inspectors Insurance surveyors 10 half days 6

RE-INSURANCE The training will enable participants to acquire knowledge and skill in the application and operation of reinsurance. Background of Re-Insurance Methods of Re-Insurance Treaty Wordings Legal aspects of Re-Insurance Retention & Re-Insurance Programming Application of Re-Insurance Re-Insurance Markets Non-Life Re-Insurance Accounting Insurance Inspectors Middle level managers Underwriting managers Claims managers All staff working on Re-insurance processes 10 half days 7

INSURANCE ACCOUNTING After the course, participants will be able To understand the difference between the main stream accounting & Insurance accounting. To prepared various financial statements Properly account for reinsurances transactions solvency test Undertake various ratio analysis including solvency test Introduction to accounting principles for all companies Recent developments in the field, taking financial economic concepts into account. Overview of modifications to general principles applicable to life and non-life insurance The balance sheet How assets are valued book value versus market value Current assets (receivables) agents balances and premiums due and unpaid Liabilities, non-life the loss cycle, actuarial reserves, unearned premiums, other reserves Liabilities, life actuarial reserves, other reserves The revenue account income, outgo, increase/decrease in reserves Capital and surplus components How the balance sheet and revenue account are linked profit and loss account, retained earnings etc Reinsurance accounting Other special topics with-profit (participating) life insurance, guarantees, accounting for derivatives and segmentation Measures of profitability and ratios Capital requirements, Solvency I and II Examination and analysis of typical financial reports for sample of insurance companies in Ethiopia 8 half days 8

ACTUARIAL SCIENCES IN LIFE INSURANCE Definition and brief history of actuarial science. Recent developments in the field, taking financial economic concepts into account. Application in the field of life insurance. Overview of main tools and techniques used by actuaries. Issues in insurance: how to keep premiums affordable while ensuring sustainability of the insurance entity; problem of moral hazard ; problem of adverse selection; Pricing components of life insurance products, including key factors such as target market, product design, marketing and communication, administration and claims service. Use of databases for pricing purposes and sound management, and specific data elements that must be included An overview of actuarial modeling techniques Actuarial risk, comprising parameter risk arising from incomplete information on the actual probability of loss and process risk arising from the random nature of benefit costs Insurance and asset risk management and Enterprise Risk Management (ERM) Capital requirements, reserves, reinsurance and investment management for insurance companies. Discussion of actuarial modeling and business planning tool for life products Performance indicators for life insurance Overview of life insurance products with international examples 8 half days 9

MICRO INSURANCE After this course, the participants will be able: To understand the nature and modern schemes in micro insurance business To design and implement new products on micro insurance To understand importance of monitoring, the daily management, decision making and business planning process in micro insurance process Insurance policies and regulations Microfinance and micro insurance businesses: international best practices and Ethiopian practice Main characteristics of micro clients Micro insurance products and their features The principles of micro insurance products Main risks in the micro insurance business Main tools for underwriting risks in the micro insurance business Micro insurance delivery models: MFIs vs. insurance companies Monitoring of micro insurance products and risks Marketing and market research, incl. modern tools in the micro insurance business Clients in the micro insurance business and CRM Development and piloting of new micro insurance topics Reinsurance schemes Micro Insurance Legal aspects in micro insurance: international best practices and the challenges on the Ethiopian market 6 half days 10

ENGINEERING INSURANCE The overall objective is to enable participants understand the basic concepts of engineering insurance, the various classes of engineering policies including the risk assessment, management and loss prevention procedures. Definition Engineering Insurances Types of risks covered Policy provisions and conditions Risk assessment, risk management and loss prevention Claims management Middle level insurance company managers Underwriters Claims handlers Claim inspectors Risk assessors Insurance supervisors 11 half days 11

MARINE CARGO INSURANCE After taking the course, the trainee will be able to: Develop the knowledge and understanding of the legal principles of Marine Cargo Insurance Develop the knowledge and understanding of the legal liabilities of vessel owners and carriers Understand the world market within which the principles of Marine Insurance apply Development of Marine Insurance Marine Insurance Market Principles of maritime International Law Contracts of carriage Incoterms Cargo Perils Covered Cargoes, Modes of Transport and Infrastructure Maritime Risks and types of cover Underwriting & claims managers Marine Cargo underwriters Marine Cargo claim handlers Insurance inspectors Risk Surveyors Loss assessors 15 half days 12

LIFE, PERSONAL ACCIDENT & HEALTH INSURANCE The trainee will be able to Understand various forms of life assurance Underwrite various life assurances Handle claims of life assurance Understand various type of bolt-on policies Life insurance basic forms Life insurance premiums Life insurance underwriting Life insurance policy provisions Supplementary contracts Group life insurance Medical expenses insurance Claim Administration Life Insurance Underwriter Life insurance claims handlers Life insurance inspectors Middle level insurance company managers 11 half days 13