COURSE OBJECTIVES

In this course, you will learn to:

• Identify the types of insurance products supported by general account and separate account assets.
• Describe the movement of funds in and out of general and separate accounts.
• Define and describe different ways that investors can measure investment returns.
• Explain how investors use volatility and standard deviation to estimate investment risks and returns.
• Explain how interest-rate risk affects bond investments and interpret interest-rate sensitivity using bond duration.
• Explain how market interest-rate changes can result in margin compression or margin expansion for insurers.
• Explain some of the investment objectives and the investment constraints of life insurance companies.
• Describe insurer investment strategies related to asset-liability management (ALM).
• Explain how investment professionals create a portfolio’s strategic asset allocation.
• Describe diversification and hedging and explain how institutional investors can use each strategy to manage specific risks in portfolios.
• Explain how investment professionals use certain metrics to measure the level of risk that a portfolio has accepted and the portfolio’s risk-adjusted returns.
• Explain how capital adequacy requirements, asset and liability valuation standards, and accounting and financial reporting standards contribute to insurer solvency regulations.
• Describe the effects that the Investments of Insurers Model Acts, investment reserve requirements, and restrictions on general account holdings have on insurers’ investments.

COURSE FORMAT

Course portals include the following elements:

• All the assigned study materials needed for the course
• Interactive practice questions and sample exams
• Recommended study plans to help you set goals and manage your study schedule
• Additional media and features to help in the study and review process

EXAM FORMAT

• Study materials for this course are delivered via the online course portal, which also includes enrollment in one of the exam options for the course:
• Timed, self-proctored end-of-module exams available through the course portal. Learners complete a short online exam at the end of each course module. The total number of questions across all end-of-module exams is 60.
• Proctored end-of-course I*STAR exam. The time limit for the proctored exam is 2 hours and the exam includes 60 questions. Proctored examinations are available as computerized/I*STAR exams at a LOMA member organization.
• The course content is the same regardless of the testing option chosen.

STUDY MATERIALS

• Institutional Investing: Principles and Practices, Second Edition © 2020
• ISBN: ISBN 978-1-57974-479-3
• LOMA’s e-books include text-based content with interactive and multi-media features. Practice and review questions, videos, and other interactive features are integrated in the e-book content. This creates a more dynamic, engaging way to learn important topics.
• The content downloaded to the e-reader will be available indefinitely. Features that are accessible only through the course portal (sample exam, end-of-module exams, etc.) will no longer be available after the 6-month enrollment period.

TOPICS:

• Introduction to Investing
• Overview of Basic Investment Vehicles
• Advanced Investment Vehicles and Capital Markets
• Investment Returns and Risks
• Institutional Investment Objectives and Constraints
• Risk Management and the Investment Function
• Portfolio Construction and Asset Selection
• Portfolio Management and Operations
• Monitoring and Evaluating Portfolio Performance
• Regulations and the Investment Function
• Ethical Standards and Governance for the Investment Function