From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More
Join today to access over 25,600 courses taught by industry experts.
Life insurers
From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More
Life insurers
- [Narrator] Life insurance companies play a critical role in the financial ecosystem, offering long-term financial security to policy holders while managing substantial operational and financial complexities. Let's explore how life insurers operate and the unique challenges they face. At their core, life insurers collect premium from policy holders and invest those funds to meet future obligations such as death benefits or cash surrender values. This process, known as reserving, ensures there's sufficient capital to cover claims as they arise, whether that's next month or decades down the line. Investment strategy is central, then, to a life insurer's operations. Life insurers typically prioritize long-term, stable investments like bonds and real estate to align with their liabilities. Asset liability matching, or ALM, is a critical technique they use to ensure their investment durations and cash flows match policy holder obligations. But life insurance isn't without its risks. Let's…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.