Actuarial Notes

DISC RM

Risk Management and Insurance Operations (DISC RM) is one of the three Data and Insurance Series Courses (DISCs) the CAS requires for the ACAS. The DISCs are online, self-paced courses run by The Institutes. Each ends in an exam of 75 application-based multiple-choice questions, with 100 minutes to answer them, and the course fee includes one attempt. The course itself contains the learning objectives and all the material needed to meet them; a textbook with the same content, condensed review notes, a course guide of sample questions and answers, and flashcards are sold separately and are optional. It replaced CAS Online Course 1 in 2023.

The Institutes gives the topics no exam weights.

Learning Objectives

1. Introduction to Risk Management

  1. The Risk Management Environment
  2. Objectives and Benefits
  3. Basic Risk Measures
  4. Classifications and Categories
  5. Process for Managing Risk

2. Identifying Risk

  1. Holistic Risk Identification
  2. Risk Identification as a Team
  3. Assessment Tools and Techniques

3. Managing Business Continuity Risk

  1. Organizational Resiliency
  2. Business Continuity Management
  3. Business Continuity Planning

4. Treating Risk

  1. Risk Treat Fundamentals
  2. The Evolution of Risk Treatment
  3. Risk Treatment Applications
  4. Treating Risk Holistically

5. Insurance as a Risk Management Technique

  1. Using Insurance to Treat Risk
  2. Managing Personal Property Exposures
  3. Managing Personal Liability Exposures
  4. Analyzing Commercial Property Loss Exposures
  5. Analyzing Commercial Liability Loss Exposures

6. Overview of Insurance Operations

  1. Insurer Goals and Constraints
  2. Classification of Insurers
  3. Measuring Insurer Performance
  4. Functional View of Insurance
  5. The Digitization of Insurance

7. Insurance Marketing and Distribution

  1. Property-Casualty Insurer Marketplace
  2. Unique Factors in the Property-Casualty Insurer Marketplace
  3. Insurer Marketing Activities
  4. Insurance Distribution Systems and Channels
  5. Functions of Insurance Producers
  6. Selecting Distribution Systems and Channels

8. The Underwriting Function

  1. Underwriting Activities
  2. Underwriting Authority
  3. Constraints in Establishing Underwriting Policy
  4. Implementing Underwriting Policy
  5. Steps in the Underwriting Process
  6. Measuring Underwriting Results

9. Underwriting Commercial Property Coverage

  1. Identifying the Causes of Commercial Property Loss
  2. Analyzing Fire Exposure: The Greatest Threat
  3. Evaluating Commercial Property Provisions Affecting the Amount of Loss
  4. Verifying Property Values
  5. Determining Potential Loss Severity
  6. COPE Elements

10. Underwriting Business Income and Commercial Liability Coverage

  1. Estimating Probably Maximum Loss of Business Income
  2. Factors that Influence the Maximum Period of Restoration
  3. Factors that Influence the Maximum Loss During the Period of Restoration
  4. Insurance to Value for Business Income Coverage
  5. Classifying General Liability Accounts
  6. Commercial General Liability Premium Bases
  7. Underwriting Premises and Operations Liability
  8. Underwriting Products and Completed Operations Liability
  9. Underwriting Commercial Crime Insurance

11. Underwriting Other Types of Coverage

  1. Business Auto Underwriting Considerations – Liability Coverage
  2. Business Auto Underwriting Considerations – Physical Damage Coverage
  3. Workers Compensation Underwriting Considerations
  4. Underwriting Commercial Umbrella and Excess Liability Insurance
  5. Underwriting Personal Auto Insurance

12. Risk Control and Premium Auditing

  1. Insurer Risk Control Goals
  2. Risk Control Services Provided by Insurers
  3. Cooperation Between Risk Control and Other Insurer Functions
  4. Reasons for Premium Auditing
  5. Premium Auditing Process
  6. Premium Auditing Contributions

13. The Claims Function

  1. Overview of the Claims Function
  2. Claims Department Structure, Personnel, and Performance
  3. Claims Measures Used to Ensure Regulatory Compliance
  4. The Claims Handling Process
  5. Framework for Coverage Analysis
  6. Applying the Claims Handling Process and the Framework for Coverage Analysis

14. Understanding Reinsurance

  1. Reinsurance and its Functions
  2. Reinsurance Sources
  3. Reinsurance Transactions
  4. Types of Pro Rata Reinsurance
  5. Types of Excess of Loss Reinsurance
  6. Alternatives to Traditional Reinsurance

15. Insurer Strategic Management

  1. Strategic Management Process
  2. The Five Forces and SWOT Methods of Analyzing the Environment
  3. Determining Strategy at Different Organizational Levels
  4. Strategic Management Case
  5. The Insurance Underwriting Cycle

Source Material

Source Material

  • Risk Management and Insurance Operations (The Institutes - 2023)
    • 1–15