This book has been a valuable reference work on risk financing since its first edition in 1992.
This new work covers the fundamentals in detail and expands the analysis of the options in risk financing to include guidance on risk retention decision-making, modern uses of the well-established concept of captive insurance companies, and alternative risk financing.
IRM Course Book Module 4.

Author(s): Gordon, Dr. A.
Published: 2003
Binding: Paperback
ISBN 10: 1856092615 ISBN 13: 9781856092616

Introduction                                                                                                   

 

1.         The Nature of Risk Financing                                                          

1.1       Introduction                                                                             

            1.2       The Role of Risk Financing                                                      

            1.3       Risk Financing Variables                                                          

            1.4       Risk Financing Techniques                                                       

 

2.         Estimation and Valuations of Cash Flows                                       

            2.1       Introduction                                                                             

            2.2       Sources of Data                                                                                   

            2.3       Adjustments to Data                                                                

            2.4       Loss Forecasting                                                                                 

            2.5       Time Value of Money                                                              

 

3.         Non-Insurance Contractual Transfer                                              

            3.1       Introduction                                                                             

            3.2       Contract Terms                                                                       

            3.3       Forms of Contractual Transfers                                                

            3.4       Management of Non-Insurance Contractual Transfers  

           

4.         Self-Insurance (1)                                                                             

            Pre-Conditions and Rationale                                                                           

            4.1       Introduction                                                                             

            4.2       Methods of Self-Insurance                                                       

            4.3       Conditions for Effective Self-Insurance                         

            4.4       Incentives for Self-Insurance                                                    

            4.5       Feasibility Study                                                                      

 

5.         Self-Insurance (2)                 

Organisation and Finance                                                                 

            5.1       Introduction                                                                             

            5.2       Financing for Self-Insurance                                                                 

            5.3       Organisation and Operation                                                     

            5.4       Retention Levels                                                                      

            5.5       Sources of Finance                                                                  

 

6.         Deductibles                                                                                       

            6.1       Introduction                                                                             

            6.2       Types of Deductibles                                                               

            6.3       Analysis of the Section of Deductibles                          

            6.4       Deductible Selection Rules and Models                        

            6.5       Conclusion                                                                              

 

7.         Captives (1)                                                                                                   

            Nature, Formation and Feasibility                                                   

            7.1       Introduction                                                                             

            7.2       Reasons for Formation                                                 

            7.3       Types of Captive                                                                     

            7.4       Feasibility Study                                                                      

 

8.         Captives (2)

Operation and Management                                                

8.1       Introduction                                                                             

8.2       The Tax Position of Captives                                                   

8.3       Fronting Facilities                                                                     

8.4       Underwriting                                                                            

8.5       Reinsurance                                                                             

8.6       Operational and Administrative Requirements               

8.7       Management of the Captive                                                     

 

9.         Insurance (1)

Analysis and Evaluation                                                                   

9.1       Introduction                                                                             

9.2       Nature of Insurance                                                                 

9.3       The Policy Document                                                               

9.4       Analysis of Cover                                                                    

9.5       Evaluation of Cover                                                                 

 

10.       Insurance (2)

      Insurance Needs and Programmes                                                  

      10.1     Introduction                                                                             

      10.2     Determination of Insurance Needs                                            

      10.3     Review of Insurance Programme                                              

      10.4     Insurance Intermediaries                                                          

      10.5     Insurance of Multinational Corporations                                   

      10.6     Summary and Conclusion                                                         

 

11.       Alternative Risk Finance                                                                 

            11.1     Introduction                                                                             

            11.2     Primary ARF Structures                                                           

            11.3     Contingent Capital                                                                   

            11.4     Other ARF Product Developments                                          

            11.5     The Complexity of ARF Solutions                                            

 

Index