FINANCIAL MARKETS AND MANAGEMENT FOR INS

The first half of this course introduces key financial markets including interest rates, equity, foreign exchange, mortgage, and some derivatives. It also discusses interactions of the Federal Reserve and the securities firms and their effects on the markets. The 2nd half introduces some key metrics used in managing insurance companies including earnings, regulatory/economic capital and embedded value. These metrics are discussed in the context of insurance risks, financial markets, and regulatory regimes. The 2nd half also provides an overview of the major actuarial/finance functions in a typical insurance company (i.e. Valuation, Pricing, Risk, etc.) and more importantly how they use these metrics to manage profitability and risk. The course is intended to provide students with a broader background when dealing with financial and insurance products.

This course also touches on many topics required for the upper level actuarial exams by the SOA and should help lay the conceptual foundation. These exams include Corporate Finance, ERM, Individual Life and Annuity pricing and risk management, Life Finance and Valuation, and Investment Risk Management.