Insurance Accounting Course

Lesson 1 • Core Financial Statements Overview

Introduces the balance sheet, profit and loss account, and cash flow statement as used by insurers. Connects each statement to insurance-specific line items.

Lesson 2 • Types of Insurance Entities

Distinguishes stock insurers, mutual companies, captives, and reinsurers by ownership and purpose. Clarifies how entity type shapes reporting obligations.

Lesson 3 • Regulatory Accounting vs. GAAP

Contrasts statutory accounting principles with generally accepted accounting principles. Students identify when each framework applies and why differences exist.

Lesson 4 • The Insurance Business Model

Examines how insurers collect premiums, assume risk, and generate profit. Establishes the economic logic that drives every accounting decision in the industry.

Lesson 1 • Premiums Receivable and Collections

Addresses recording of amounts due from policyholders and agents. Connects receivable management to cash flow and credit risk.

Lesson 2 • Written vs. Earned Premiums

Explains the distinction between premiums written at policy inception and premiums earned over coverage periods. Anchors revenue recognition timing for all subsequent topics.

Lesson 3 • Unearned Premium Reserve

Covers calculation and balance sheet presentation of the unearned premium reserve. Students apply earning schedules to derive accurate liability balances.

Lesson 4 • Reinsurance Premium Accounting

Demonstrates how ceded and assumed reinsurance premiums are recorded and netted. Students reconcile gross and net premium positions.

Lesson 1 • Recording Losses and Loss Adjustment Expenses

Covers journal entries for paid losses, case reserve changes, and loss adjustment expenses. Connects actuarial estimates to the general ledger.

Lesson 2 • Loss Development Triangle Methods

Applies the chain-ladder and Bornhuetter-Ferguson methods to loss triangles. Students select and justify development factors from historical data.

Lesson 3 • Reserve Adequacy Testing and Disclosure

Introduces loss reserve opinion requirements and sensitivity testing. Students interpret actuarial reports and draft reserve disclosures.

Lesson 4 • Reinsurance Recoverable on Losses

Explains how ceded losses and reinsurance recoverables are recorded and evaluated for collectibility. Students net reserves correctly under both gross and net presentations.

Lesson 1 • Realised and Unrealised Gains and Losses

Distinguishes realised gains and losses from unrealised changes and their profit and loss account vs. surplus impact. Students record disposals and mark-to-market adjustments.

Lesson 2 • Insurance Investment Portfolio Overview

Describes the asset-liability matching strategy that drives insurer investment decisions. Establishes the link between investment policy and reserve funding.

Lesson 3 • Investment Income Recognition

Explains accrual of interest, dividends, and real estate income for statutory and GAAP purposes. Students prepare investment income schedules tied to the profit and loss account.

Lesson 4 • Equity and Alternative Investment Accounting

Addresses equity method, cost method, and fair value accounting for stocks and alternatives. Students identify the correct method based on ownership percentage and intent.

Lesson 1 • Admitted vs. Non-Admitted Assets

Defines which assets regulators allow in solvency calculations and which are excluded. Students reclassify assets and calculate admitted asset totals.

Lesson 2 • Statutory Schedules and Exhibits

Covers completion of investment schedules, premium exhibits, and loss reserve exhibits. Students reconcile schedule totals to balance sheet and profit and loss account lines.

Lesson 3 • Risk-Based Capital Framework

Introduces the risk-based capital formula and its role in regulatory oversight. Students calculate a basic RBC ratio and interpret regulatory action levels.

Lesson 4 • Structure of the Statutory Annual Statement

Maps the pages, exhibits, and schedules of the statutory annual statement. Students navigate the document and identify where each financial element is reported.

Lesson 1 • Risk Transfer Testing

Applies the risk transfer criteria required for reinsurance accounting treatment. Students evaluate contracts and determine deposit vs. reinsurance accounting.

Lesson 2 • Ceded Reinsurance Accounting

Records ceded premiums, ceded losses, and ceding commissions from the primary insurer's perspective. Students prepare ceded reinsurance journal entries and reconcile balances.

Lesson 3 • Assumed Reinsurance Accounting

Records assumed premiums, losses, and commissions from the reinsurer's perspective. Students contrast assumed entries with ceded entries to reinforce both sides.

Lesson 4 • Reinsurance Recoverables Management

Addresses credit risk, collectibility provisions, and offset rights for reinsurance recoverables. Students assess counterparty exposure and record impairment entries.

Lesson 1 • Fair Value Measurement and Disclosure

Applies the three-level fair value hierarchy to insurance company assets and liabilities. Students classify instruments and draft required fair value disclosures.

Lesson 2 • GAAP vs. Statutory Reconciliation

Identifies the major differences between GAAP and statutory results and prepares a formal reconciliation. Builds on statutory knowledge to highlight GAAP adjustments.

Lesson 3 • Long-Duration Contract Accounting

Addresses GAAP requirements for life insurance and annuity contracts, including benefit reserves and policyholder account balances. Students apply updated measurement guidance.

Lesson 4 • Short-Duration Contract Disclosures

Explains enhanced GAAP disclosure requirements for property-casualty loss development. Students prepare rollforward tables and disaggregated reserve disclosures.

Lesson 1 • Insurance Financial Ratios and Metrics

Calculates and interprets the combined ratio, loss ratio, expense ratio, and return on equity. Students benchmark results against industry standards.

Lesson 2 • Catastrophe Accounting and Reporting

Addresses accounting for large catastrophic loss events, including reserve estimation and reinsurance recovery. Students apply catastrophe-specific disclosure requirements.

Lesson 3 • Earnings Quality and Reserve Analysis

Evaluates reserve development patterns and earnings quality indicators to detect financial statement risk. Students apply analytical techniques used by regulators and analysts.

Lesson 4 • Deferred Tax Accounting for Insurers

Identifies temporary differences unique to insurance and calculates deferred tax assets and liabilities. Students assess valuation allowance needs for deferred tax assets.