Session 6: Financial Competence - Searchlight Insurance Training

Session 6: Financial Competence

The session will examine basic financial principles as applied to insurance businesses, exploring, at a high level, the reasons why capital adequacy and solvency are important and how pricing, underwriting and claims reserving can impact on the solvency of insurers. The concept of prudence will be considered, along with its application to effective risk management.


Duration: 0.2 day(s) CII CPD Hours: 1.5


The learner should be able to demonstrate an understanding of the operation of insurance businesses in financial terms.

Areas covered:

The session will address the following topics:

  • Basic financial principles found in insurance
  • Factors that can affect capital adequacy and solvency
  • Effective risk management and its relationship to prudence

Prudential regulation by FCA and PRA – the impact of Solvency II