Training on Risk Management & Insurance Strategy

​​​​​​Module 1: Enterprise Risk Management & The Role of Insurance

• ERM frameworks (COSO, ISO 31000) and risk appetite statements

• Identifying insurable, non-insurable, and partially insurable risks

• Insurance as a risk treatment tool within the broader risk register

• Case Study: Map a manufacturing firm's top 10 risks to insurable vs. non-insurable; recommend insurance for at least four

Module 2: Risk Financing Fundamentals – Retention vs. Transfer

• Total cost of risk (TCOR) components: premiums, retentions, claims, administration

• Deciding retention levels based on loss frequency, severity, and balance sheet capacity

• Deductibles, self-insured retentions (SIRs), and captive fronting arrangements

• Hands-on Exercise: Given $10M balance sheet and 5-year loss history, calculate optimal per-occurrence retention

Module 3: Layered Insurance Program Design

• Primary layer, excess layers, and umbrella/excess liability structures

• Attachment point selection using loss exceedance curves (EP curves)

• Blended limits, aggregates, and sub-limits for specific perils

• Case Study: Design a property program with three layers ($5M xs $2M, $10M xs $7M, $15M xs $17M) for a $20M maximum foreseeable loss

Module 4: Captive Insurance Companies

• Single-parent, group, and protected cell captive structures

• Captive uses: hard-to-place risks, deductible reimbursement, dividend distribution

• Fronting insurers, collateral requirements, and regulatory considerations

• Hands-on Exercise: Build a 3-year pro forma for a captive funding a $500k SIR on general liability

Module 5: Parametric & Index-Based Insurance

• Parametric triggers: wind speed, rainfall, earthquake magnitude, temperature

• Basis risk trade-off vs. speed of payment (no loss adjustment)

• Hybrid parametric + indemnity structures for critical infrastructure

• Case Study: Compare parametric vs. indemnity cover for a Caribbean resort chain's hurricane risk – which is faster and cheaper?

Module 6: Multi-Year & Multi-Line Programs

• Multi-year guaranteed cost programs (3-year fixed premium)

• Multi-line aggregate stop-loss covering property, liability, and auto combined

• Hedging hard market cycles and reducing annual negotiation friction

• Hands-on Exercise: Calculate break-even premium for a 3-year program vs. annual renewals using three market scenarios (soft, flat, hard)

Module 7: Cyber Risk Insurance Strategy

• First-party (response, ransomware, business interruption) vs. third-party coverage

• Silent cyber vs. affirmative cyber in property and liability policies

• War exclusions, state-sponsored attack ambiguities, and sub-limits

• Case Study: Draft a cyber insurance renewal strategy for a healthcare firm after a $2M ransomware claim

Module 8: Supply Chain & Contingent Business Interruption

• Contingent business interruption (CBI) – dependent property clauses

• Named supplier vs. unnamed (broad form) CBI coverage

• Modeling supply chain concentration risk and recovery time estimates

• Hands-on Exercise: Map a manufacturer's top 5 suppliers and calculate maximum CBI exposure assuming 90-day recovery

Module 9: Insurance Strategy in Hard vs. Soft Markets

• Underwriting cycle drivers: capacity, cat losses, investment yields, reinsurance costs

• Hard market tactics: higher retentions, multi-year deals, parametric alternatives

• Soft market tactics: limit buying, premium financing, broader policy terms

• Case Study: Given a hard property market (rates up 40%), recommend three retention increases and two coverage reductions

Module 10: Final Workshop – Corporate Risk Financing Strategy

• Scenario: Mid-sized logistics firm with $50M revenue, fleet of 200 trucks, 3 warehouses in flood zones

• Current program: $1M auto liability deductible, $250k property deductible, no cyber cover

• Objectives: reduce TCOR by 15%, add cyber, protect against flood accumulation

• Hands-on Exercise: Teams present a 3-year risk financing plan including retentions, captive feasibility, parametric flood trigger, and cyber limit