Understanding Financial Statements for Insurance Professionals

Understanding Financial Statements for Insurance Professionals

Learn to read and understand financial statements as they relate to Directors and Officers Liability Insurance underwriting. Gain an understanding of an organization’s balance sheet, income statement and cash flow statement, and learn to navigate insurer and client discussions with confidence.

Pointers

What You Will Learn

The Basics
Accounting fundamentals including business structures, assets, liabilities, owners equity and transaction recording.
Statements
How to read and interpret the balance sheet and the income statement, plus key terminology and financial analysis ratios.
Financial Activities
How to identify operating, financing, and investing activities of a company, including profit vs. cash flow, cash inflows and outflows, and burn rate.
Reports & Notes
The key components of an annual report and where to find them, as well why the notes to the financial statements are important for understanding risk.

Course Curriculum

Understanding Financial Statements Introduction

Accounting Fundamentals

  • 4 Key Insights Underwriters Gain from Financial Statements
  • Common Business Structures
  • Basic Accounting Equation
  • What are Assets?
  • What are Liabilities?
  • What is Owner's Equity?
  • Transaction Analysis - Introduction
  • Transaction Analysis- 1
  • Transaction Analysis - 2
  • Transaction Analysis - 3
  • Transaction Analysis - 4
  • Transaction Analysis - 5
  • Transaction Analysis - 6
  • Transaction Analysis - 7
  • Transaction Analysis - 8
  • Transaction Analysis - 9
  • Transaction Analysis - 10
  • Interactive Exercise

The Balance Sheet

  • Introduction and Objectives
  • The Balance Sheet FREE PREVIEW
  • The Format of the Balance Sheet
  • Balance Sheet - Examples
  • Transaction Analysis
  • Issuing Shares
  • Bank Debt
  • Property, Plant & Equipment
  • Buying and Selling Inventory
  • Paying Salaries
  • Interest Expense
  • 3 Key Ratios
  • Lululemon Athletica - Financial Statements ending May 3, 2020
  • Lululemon Athletica - Exercises

The Income Statement

  • Introduction & Objectives
  • The Income Statement FREE PREVIEW
  • The Format of the Income Statement
  • Revenue
  • Direct Operating Costs & Gross Profit
  • SG&A and Operating Income
  • Net Income
  • Interactive Exercise

Cash Flow Statement

  • Introduction & Objectives
  • The Cash Flow Statement FREE PREVIEW
  • Why is the Cash Flow Statement Important?
  • Profit and Cash Flow are not the same
  • Sections of a Cash Flow Statement
  • Cash Inflows and Outflows
  • 4 Key Elements of a Cash Flow Statement
  • Burn Rate
  • Interactive Exercise

The Annual Report

  • Introduction & Objectives
  • The Benefits of the Annual Report
  • The Contents of the Annual Report
  • The MD&A
  • The Audit Report
  • The Notes to the Financials

Final Assessment and Survey

  • Course Survey
  • Course Wrap Up
  • Understanding Financial Statements Exam

About ITC Courses

ITC takes pride in delivering high quality, unbiased courses on professional and management liability insurance and related topics. Designed specifically for online delivery, our courses are interactive, include activities and quizzes, use practical illustrations and real-life case studies and deliver knowledge in bite-sized portions so even just 5 minutes is learning time well spent.

How we build courses

ITC courses are the product of a collaborative approach. We work closely with subject matter experts to build out course content, the ITC design team brings that content to life, and no course is published before undergoing an intense review by an industry panel. Our process also includes post-publication reviews and updates because ITC is committed to delivering quality courses that remain accurate, relevant and up-to-date, long after they are first published.

Testimonials

Insurance Brokerage, Canada

Very clear, concise content, delivered in an easy to understand way. Whether an industry vet or just starting out, you will learn something from this course- I did! It’s easy to see how this platform could complement any corporate training program. I’d thoroughly recommend ITC to any L&D manager.

Broker, Australia

ITC effectively tackles complex subject matters in a very creative manner. I would highly recommend to anyone looking to broaden their understanding.

Broker, Canada

Great way to enjoy an evolving subject matter. Thank you ITC, enjoyed that!

Broker, Australia

Tough topics. Beautifully presented.

Senior Underwriter, Canada

I’ve been in the industry for nearly 15 years and event I learned some things in this course! It’s a straightforward and intelligent way of presenting a complex issue. Not a small feat.

Everyone will find this course helpful, no doubt.

Broker, Canada

Most insurance courses are either pitched at people learning about the subject for the first time or jump straight into advanced topics. The ITC courses do a great job for all learners and I particularly liked the online format since you can either spend time starting from the beginning or quickly move on to the areas of most interest to you. The course material also went beyond insurance policy language – addressing risk management, claims processes, what buyers should consider, and more.

Frequently Asked Questions

Are there prerequisites for ITC courses?

With ITC, you can take any course at any time. For the best learning experience, a prerequisite may be recommended in the course description.

What if I don’t see the topic I’m interested in?

At ITC, we want to hear from you! Our courses are specifically developed to provide relevant and up-to-date training on insurance topics. If there is something you’d like to learn or explore and we don’t have the course, please reach out!

Do your courses have the latest information?

We take pride in providing up-to-date relevant courses! ITC is committed to reviewing all course content at least once a year and making any necessary updates or additions to course materials.

Will I get a certificate for completing a course?

We provide a digital certificate of completion for all successfully completed courses.

What currency are ITC’s courses priced in?

All ITC courses and subscriptions are priced in USD.

If I purchase a single course, how long will I have access to the course?

When you purchase a single course you will receive lifetime access to the course from any device. This includes any future updates to course materials.

Can I get a refund for a course purchase?

We offer a risk-free 30-day money-back guarantee on all our courses. If you are not happy with your ITC course purchase you have up to 30 days from your original date of purchase to contact ITC at [email protected] to request a full refund. All we ask is that you provide us with the reason for your refund request. It is feedback from clients like you that helps us to improve our courses.

How do ITC subscriptions work?

When you sign up for an ITC subscription, you’ll immediately have unlimited access to the entire course library and you can cancel at any time. But why would you want to? Having ongoing access to course materials means you can refer back anytime you like, brush up on important concepts, or even retake those sections that you keep forgetting (of course, we’re not saying that you’re forgetful). Plus, the longer you subscribe, the more courses and resources you’ll get because we are continually investing in adding new courses and updating existing ones.

What’s the difference between the monthly subscription and the annual subscription?

With both subscription options you get immediate access to the entire course library as well as access to all additions and updates for as long as you continue to subscribe. For best value we recommend the annual subscription.

What if I want to cancel my subscription?

You can cancel your subscription at any time by contacting ITC at [email protected]. Your subscription will auto-renew until then. Before you decide to cancel just remember that we’ve got new courses in the pipeline that may be of interest to you. If you want to know what new courses we’re working on you can email us at [email protected] and ask.

Will I be able to get a refund for my subscription if I cancel?

Our risk-free 30-day money-back guarantee also applies to our subscription services. If you’ve purchases a monthly or annual subscription you have 30 days from your original date of purchase to contact ITC at [email protected] to request a full refund. All we ask is that you provide us with the reason for your refund request.

Please note, when a subscription is refunded, your account with ITC will be closed. Completion certificate(s) for any courses you may have already completed during your subscription will no longer be accessible. And we will be sad to see you go.

If I decide to cancel, why does ITC need to know why?

We ask for an explanation because we value your input and it is feedback from clients like you that helps us improve our courses.

Is my certificate of completion valid after I get a refund?

If you request a refund, your account will no longer be valid and your certificate of completion will not be accessible.

Does ITC have purchase plans for businesses?

Yes, ITC can also provide courses through bespoke corporate programs. To find our more please contact us directly at [email protected].

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