| CODE | INS5006 | ||||||||||||||||
| TITLE | Risk Transfer Accounting | ||||||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||||||
| MQF LEVEL | 7 | ||||||||||||||||
| ECTS CREDITS | 5 | ||||||||||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||||||||||
| DESCRIPTION | The Risk Transfer Accounting industry is a specialist field that requires proficiency and a thorough understanding of the sector. This is an advanced insurance accounting unit and will be exploring the intricacies of accounting concepts when applied to general and life insurance companies, captive insurance companies and cell companies (PCCs and ICCs). The unit will provide a comprehensive investigation of the accounting concepts when applied to insurance and reinsurance contracts, technical reserves and investments. Our introduction will introduce the different measures of risk. This will be followed by risk aggregation techniques as applied by the Solvency II framework. The differences in calculation of technical reserves under an IFRS 4, Solvency II and IFRS 17 standard are provided. A detailed introduction to captive insurance companies and cell companies will be given, followed by an evaluation of typical structures involved and the distinctive accounting treatment applicable for each type of insurance company. The unit will then examine IFRS 17, the standard that is bound to overhaul the insurance industry. Study-unit Aims To familiarise students with the accounting treatment of general and life insurance companies, captive insurance companies and cell companies, in particular: - To account for insurance and reinsurance contracts, technical reserves and investments; - To familiarise students with captive insurance companies, and to gain an insight into the financial analysis and reporting required; - To familiarise students with specific accounting rules and regulation pertaining to cell companies; - To define the implications of the International Financial Reporting Standards 17. - To familiarise student with the different functions and the links between the accountant and: - The actuarial function; - Solvency II; - Compliance; - Auditor. - To familiarise the student with solvency II. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: Define specific accounting treatment of insurance companies, including captive insurance companies and cell companies. Specifically: - Advanced accounting principles for insurance companies; - Financial analysis and reporting for captive insurance companies; - Accounting for Protected Cell Companies; - Accounting for Incorporated Cell Companies; - International financial reporting standards 17. Calculate popular risk measures such as variance, down-side semi-variance, Cost of Capital, Value-at-Risk and Expected Shortfall. 2. Skills By the end of the study-unit the student will be able to: - Define the various accounting and insurance terms when applied to different types of insurance entities; - Demonstrate the necessity of setting up a captive insurance company and the financial analysis required; - Recognise the need of setting up a cell company (PCC or ICC), understand its structure and the financial reporting required; - Demonstrate the implications of IFRS 17 to insurance entities. |
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| STUDY-UNIT TYPE | Lecture | ||||||||||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Sharon Marya Cilia Tortell |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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