P92 Insurance Business And Finance - Chapter 2

Front 1

Formation of Board

Back 1

Shareholders appoint Directors.

Directors elect a chairman

Front 2

Executive directors

Back 2

Full Time.

Management Responsibility.

Board appoints one to be CEO.

Front 3

Non-Executive Directors

Back 3

Part Time.

Chosen for their expertise.

Attend board meetings and committees.

Front 4

Responsibilities of the Board

Back 4

Ensure senior management uphold shareholder interests.

Setting strategy.

Approving annual accounts and budgets.

Selecting, appraising and rewarding CEO.

Upholding company integrity on critical matters like financial reporting.

Front 5

Responsibilities of the Board (Insurance Companies)

Back 5

1. Underwriting Strategy

2. Financial Management

3. Capital Management

4. Risk Management

5. Operational Effectiveness

Front 6

UK Corporate Governance Code

Back 6

1. Board composition and development

2. Remuneration

3. Accountability and audit

4. Relations with shareholders

Front 7

Senior Executives

Back 7

1. Chief Executive Officer.

2. Managing Director.

3. Financial Director.

4. Company Secretary.

5. Chief Actuary.

Front 8

Responsibilities of CEO

Back 8

1. Link between board and management.

2. Day to day activities of the company/directorial responsibilities.

3. Formulate company objectives/translate these into operational activities.

Front 9

Responsibilities of Financial Director

Back 9

1. The Economic Capital Model - determining appropriate level of capital.

2. Stress and scenario testing - determining risk exposure.

3. Preparation of financial information

Front 10

Financial Director is responsible for preparing

Back 10

1. Papers for board to determine dividend payments.

2. Statutory accounts for board approval.

3. Financial info required by PRA.

4. Information for rating agency review.

5. Management information on indicators of financial performance

Front 11

Company Secretary

Back 11

1. Companies Act 2006 requires for all public companies.

2. Not so for private companies

Front 12

Roles of Chief Actuary

Back 12

1. Technical pricing.

2. Claims reserving.

3. Risk-based capital requirements.

4. Assessing investment risk

Front 13

Management Actions

Back 13

Planning, Organising, Leading and Controlling the material, financial and human resources of an organisation

Front 14

Planning

Back 14

1. Repetitive process.

2. Resulting in an agreed plan.

3. Allocation of time and resources.

4. Aim to achieve identified results

Front 15

Organisation

Back 15

1. Organising material and human resources.

2. Optimum utilisation.

3. Achieve business plans.

4. Good coordination/prioritisation.

Front 16

Leading

Back 16

1. Lead team members.

2. Style is dependent on company structure.

3. Accountable for performance of the team.

4. Explanation of performance to stakeholders.

Front 17

Controlling

Back 17

1. Monitor and evaluate progress of plan

Front 18

Physical Resources

Back 18

1. Office Space.

2. IT.

3. Vehicles.

4. Machinery

Front 19

Financial Resources

Back 19

1. Cash.

2. Bank loans.

3. Share capital.

4. Reserves

Front 20

Human Resources

Back 20

1. Full time staff.

2. Part time workers.

3. Contractors.

4. Employees

Front 21

Individual Managers Role

Back 21

1. Structure the team to fulfill objectives.

2. Clarify authorities to junior staff.

3. Ensure appropriate training.

4. Establish targets and performance review.

5. Correct and timely decision making.

6. Regular communication with staff.

7. Role model for team.

8. Maintain discipline through effective authority.

Front 22

Key Skills of a Manager

Back 22

1. Respect of colleagues - leading by example, empathy.

2. Customer Focus - act on feedback, relationship management.

3. Multi-tasking - skills in IT, finance, HR

4. Global outlook - ability to travel, acute. understanding of global operations.

5. New Concepts - keeping abreast of new concepts, management theory

Front 23

Managers role in Internal Communication

Back 23

Linking staff to senior management.

Communicate future plans and current performance.

Front 24

Characteristics of good Internal Communication

Back 24

1. Accuracy.

2. Clarity.

3. Relevance.

4. Reliability.

5. Credibility.

6. Timeliness

Front 25

Barriers to Effective Communication

Back 25

1. Size of company.

2. Fear/Reserved attitude.

3. Knowledge is power.

4. Language.

5. Time.

6. Training.

7. Grapevine.

8. Poor listening

Front 26

Benefits of Effective communication

Back 26

1. Motivated workforce.

2. Efficient changes in corporate structure.

3. Staff cooperation.

4. Commitment to objectives

Front 27

Key Skills of Supervisor/Team Leader

Back 27

1. Build an effective team.

2. Team Leadership.

3. Handling Conflicts.

4. Development and Coaching.

5. Customer focused.

Front 28

Dr John Adair - Action Centred Leadership

Back 28

3 Key Areas all interlinked:

1. Task - primary need to get the job done.

2. Team - build a cohesive unified team.

3. Individual - satisfy the needs of individuals and motivate them

Front 29

Key Components of Corporate culture

Back 29

1. Norms - acceptable behaviour - format for meetings, dress standards.

2. Beliefs values - we do this/we stand for this.

3. Management Style - managerial approach

Front 30

Management Styles

Back 30

1. Open Door - approachable at all times.

2. Autocratic - power rests with one individual.

3. Paternalistic - fatherly approach.

4. Militaristic - heirarchical and formal.

5. Democratic - staff consulted on decisions

Front 31

Non Managerial Staff

Back 31

Support or admin roles:

1. PA.

2. Training officers

3. HR officers.

4. Procurement managers.

5. Facilities Management.