Format:   Course
Level:   Introductory
Duration:   1 hour
CPD Points:   1

In this course we look at how insurable risks are classified into different groups and what factors are considered when underwriting these risks.  You will learn what type of insurance will help you to protect against which risk and how to figure out all the evaluating factors that help decide your premium.

Insurable Risks

Format:   Course
Level:   Advanced
Duration:   35 minutes

The concept of MPL/EML is of fundamental importance in insurance.  Logic and experience indicate that it is unusual for a risk to be exposed to a loss equal to 100% of the sum insured. Most often, the existence of fire prevention measures (water sprinklers, fire walls, nearby fire brigade or its own fire service) and the separation of buildings mean that a fire in one section should not spread to all other sections.  If you have been confused about MPL, EML and PML this is the course for you...


Format:   Course
Level:   Intermediate
Duration:   30 mins
CPD Points:   0.5

Liability policies can be underwritten in two ways Claims Made and Losses Occurring.  How does one type of policy differ from the other? This course will assist in understanding this cover and the concept of retroactive period and retroactive date.

Claims Made

Format:   Course
Level:   Advanced
Duration:   45 mins

Insurance policies do not incept and expire at the same time during the year. The financial year may be January 1, 2017 to December 31, 2017; however, the polices will incept throughout the year.
Consequently, at the end of the financial year, there will still be some policies which have not expired and which may produce claims after the end of the financial year...


Duration: 1m 38s

The application of average is the method which insurers use to deal with underinsurance.  In the event of underinsurance, the insured is paid proportionately and not paid in full.  This video provides a quick explanation of the concept of average.


Duration: 2m

If, at the time of the event giving rise to a claim, insurance exists with any other insurers covering the insured against the same defined events, the insurance company is liable to make good only a rateable proportion of the amount payable to the insured in respect of such event. This video provides a quick explanation of the concept of contribution.


Duration: 1m 58s

When a house is sold, unless a seller is asked a particular question the seller need not say anything about potential issues, for example a leaking roof - “caveat emptor” applies.  This means the buyer must beware.  Insurance is different. The proposer has all the facts that would influence the underwriter’s decision on whether or not to accept the risk, and what premium to charge. This video provides a quick overview of the concept of good faith.

Good Faith

Duration: 53s

Indemnity requires that an insurer must place the insured in the same financial position as he was in before the loss.  An insured cannot make a profit from the loss. This video is a quick overview of the concept of indemnity.


Duration: 1m 46s

There needs to be a legally recognised relationship between the insured and the financial loss that he suffers following a loss. This video is a quick overview of the concept of insurable interest.

Insurable Interest

Duration: 1m 51s

An insurance policy will cover some events and exclude some events.  When handling a claim the following questions need to be answered.  Is the cause of the loss an insured peril?  Is the cause excluded by the policy?  Has a new source intervened in the chain of events?  This video with a quick overview of the concept of proximate cause.

Proximate Cause

Duration: 1m 15s

Subrogation is the right that the insurer has to stand in the place of the insured when a claim is notified.  Let us look at how subrogation plays out practically. This video is a quick overview of the concept of subrogation.



Duration: 45m

It is necessary for an insurer to estimate the future liability of outstanding claims settlements and put aside money to meet it.  The amount can be enormous.  As a general rule claims are the largest cost of an insurer; typically accounting for greater than 65% (and often much more) of earned premium. This assumes 'normal' levels of acquisition and management expenses.

Claims Reserves


: 45mins

Risk in some form or other is always with us. Whatever we do, risk is always present, whether it be simply crossing the road, the risk that your house or other possessions might be damaged by fire, flood, lightning or earthquake, the risk of having an accident while driving, or any other chance of misfortune occurring to our person or our possessions.  Risk is an inseparable part of life and it determines the very way we live.  What can be done with risk?

Understanding Risk


Duration: 30 mins

Self insurance is a conscious choice to retain the risk.  It is insurance that a business organisation finances internally (sometimes by establishing a dedicated fund to meet losses). It may take the form of a deductible or an aggregate excess, in which event  it is often referred to as the self-insured portion of the risk. 

Self Insurance


: 25 mins

Underlying the operation of an insurer is the law of large numbers (also known as the law of averages). The operation of the law of large numbers permits insurers to predict their ultimate losses more accurately.  This enables insurers to charge an adequate premium.

Law of Large Numbers


: 35 mins

Underwriting results follow a cyclical pattern caused by external factors affecting capacity - such as catastrophic events and investment performance.  In addition internal factors - such as insurers striving for market share during times of robust investment results - contribute to the cycle. The cycles average about six years in length and are synchronised across countries and to some extent across lines of business.

Underwriting Cycle


Duration:  1h 15 mins
Insurance principles guide the conduct of insurance.  In this course we look at indemnity, average, subrogation, proximate cause, contribution, good faith and insurable interest in detail.

Principles of Insurance