Actuarial Notes

CAS DISC RM – Risk Management and Insurance Operations

By The Institutes · 2023

Study guide: Exam DISC-RM

The Institutes' online course for CAS DISC RM, and the only source material the DISC RM syllabus names: the course contains the learning objectives and all the material needed to meet them, and ends in the exam. The printed textbook has the same content; review notes, a course guide of sample questions and answers, and flashcards are optional extras.

On the syllabus

  • DISC RM — topics 1–15, the whole course, which the CAS says "contains learning objectives and all the educational material to meet these objectives".

1 Introduction to Risk Management

  • a. The Risk Management Environment
  • b. Objectives and Benefits
  • c. Basic Risk Measures
  • d. Classifications and Categories
  • e. Process for Managing Risk

2 Identifying Risk

  • a. Holistic Risk Identification
  • b. Risk Identification as a Team
  • c. Assessment Tools and Techniques

3 Managing Business Continuity Risk

  • a. Organizational Resiliency
  • b. Business Continuity Management
  • c. Business Continuity Planning

4 Treating Risk

  • a. Risk Treat Fundamentals
  • b. The Evolution of Risk Treatment
  • c. Risk Treatment Applications
  • d. Treating Risk Holistically

5 Insurance as a Risk Management Technique

  • a. Using Insurance to Treat Risk
  • b. Managing Personal Property Exposures
  • c. Managing Personal Liability Exposures
  • d. Analyzing Commercial Property Loss Exposures
  • e. Analyzing Commercial Liability Loss Exposures

6 Overview of Insurance Operations

  • a. Insurer Goals and Constraints
  • b. Classification of Insurers
  • c. Measuring Insurer Performance
  • d. Functional View of Insurance
  • e. The Digitization of Insurance

7 Insurance Marketing and Distribution

  • a. Property-Casualty Insurer Marketplace
  • b. Unique Factors in the Property-Casualty Insurer Marketplace
  • c. Insurer Marketing Activities
  • d. Insurance Distribution Systems and Channels
  • e. Functions of Insurance Producers
  • f. Selecting Distribution Systems and Channels

8 The Underwriting Function

  • a. Underwriting Activities
  • b. Underwriting Authority
  • c. Constraints in Establishing Underwriting Policy
  • d. Implementing Underwriting Policy
  • e. Steps in the Underwriting Process
  • f. Measuring Underwriting Results

9 Underwriting Commercial Property Coverage

  • a. Identifying the Causes of Commercial Property Loss
  • b. Analyzing Fire Exposure: The Greatest Threat
  • c. Evaluating Commercial Property Provisions Affecting the Amount of Loss
  • d. Verifying Property Values
  • e. Determining Potential Loss Severity
  • f. COPE Elements

10 Underwriting Business Income and Commercial Liability Coverage

  • a. Estimating Probably Maximum Loss of Business Income
  • b. Factors that Influence the Maximum Period of Restoration
  • c. Factors that Influence the Maximum Loss During the Period of Restoration
  • d. Insurance to Value for Business Income Coverage
  • e. Classifying General Liability Accounts
  • f. Commercial General Liability Premium Bases
  • g. Underwriting Premises and Operations Liability
  • h. Underwriting Products and Completed Operations Liability
  • i. Underwriting Commercial Crime Insurance

11 Underwriting Other Types of Coverage

  • a. Business Auto Underwriting Considerations – Liability Coverage
  • b. Business Auto Underwriting Considerations – Physical Damage Coverage
  • c. Workers Compensation Underwriting Considerations
  • d. Underwriting Commercial Umbrella and Excess Liability Insurance
  • e. Underwriting Personal Auto Insurance

12 Risk Control and Premium Auditing

  • a. Insurer Risk Control Goals
  • b. Risk Control Services Provided by Insurers
  • c. Cooperation Between Risk Control and Other Insurer Functions
  • d. Reasons for Premium Auditing
  • e. Premium Auditing Process
  • f. Premium Auditing Contributions

13 The Claims Function

  • a. Overview of the Claims Function
  • b. Claims Department Structure, Personnel, and Performance
  • c. Claims Measures Used to Ensure Regulatory Compliance
  • d. The Claims Handling Process
  • e. Framework for Coverage Analysis
  • f. Applying the Claims Handling Process and the Framework for Coverage Analysis

14 Understanding Reinsurance

  • a. Reinsurance and its Functions
  • b. Reinsurance Sources
  • c. Reinsurance Transactions
  • d. Types of Pro Rata Reinsurance
  • e. Types of Excess of Loss Reinsurance
  • f. Alternatives to Traditional Reinsurance

15 Insurer Strategic Management

  • a. Strategic Management Process
  • b. The Five Forces and SWOT Methods of Analyzing the Environment
  • c. Determining Strategy at Different Organizational Levels
  • d. Strategic Management Case
  • e. The Insurance Underwriting Cycle

Sources