Customized Governance Programs
NAMIC’s goal is to assist mutual insurance company board members and management by providing essential tools and resources needed to address the complex issues and risks involved in governing in today’s business environment. These resources are provided with unique perspectives and elements designed for the insurance industry in general and for mutual insurance companies in particular. Courses include: (Select a title from below to view the course description)
Definition and review of what corporate governance means for mutual company directors
Corporate Governance & Role of the Board
This session will serve as our foundation for the entire Boot Camp. We will address the fundamentals of corporate governance for mutuals, understanding your role as a board member including role of management vs. role of a director, term limits, qualifications of board positions, and the importance of independent directors. We will also define a best practices approach and discuss ways to implement those practices.
Understanding your role as a board member
Defining and implementing a best practices approach to governance
Role of management vs. role of a director
Basic Understanding of Financial Statements
This session will cover important income statement items, balance sheet items and a discussion of the key insurance factors that directors should employ to carry out effective oversight.
Understanding of the key differences between the major financial reporting standards
Proficient in evaluating a typical balance sheet and income statement
Discussion and comprehension of key financial statement ratios and factors that are used to strategically measure performance, profitability and risk
Ability to identify and effectively engage with management on the key issues related to the organization’s results, position and future direction
Investment Perspectives for Directors
During this session the primary goal will be to give directors an understanding of the key investment issues to be aware of and how a well-constructed investment policy is the key to effective oversight and controls.
Understanding of the key investment issues for insurance companies
Role and importance of investment policy in creating an effective oversight environment
Highlights of effective reporting of investment results
Legislative and Regulatory Environment
Understanding the legislative and regulatory environment and the implications for operating an insurance company is critical for board members. In this high-level session, we will address what a board member needs to know in order to guide a company through the legislative and regulatory landscape.
Understand how legislation and regulation affects insurance companies
Basic comprehension of the various organization that play a role in developing legislation and regulation
Identify the large industry-wide issues that directors should know and how they impact insurers
Understanding of the role of state and national trade associations
Develop a basic understanding of what companies have to do to comply with legislation and regulation
Identification of the types of questions directors should ask management about how various legislation or regulation will impact the company
We can tailor this session to focus on the basic concepts of the reinsurance transaction and its impact on the bottom line of an insurance company or expand the course to cover more complex elements of the reinsurance relationship and how it is used as an Enterprise Risk Management tool.
Reinsurance basics and fundamentals of risk transfer
Impact of reinsurance in company operations and financials
Data and catastrophe modeling
State of the market and competiveness
Finite reinsurance and risk transfer
Broad overview of rate making and the strategies used by management to establish policy rates
Succession Planning & Management
Succession planning and management (SP&M) is a fundamental tool for the perpetuation of any organization and its key leadership. Well-conceived, systemic, and deliberate SP&M processes do far more for an organization than merely plan for replacements. Strong SP&M processes align organizational goals so that core values are retained and the corporate vision is realized through continued successions.
Understand what succession planning and management is and its relevance to an organization’s present and future
Understand the organizational implications of succession planning and management
Become familiar with the pipeline approach to reviewing potential performance of select individuals in an organization
Understand the role of the board in overseeing a systemic approach to succession planning and management
Experience decision making using an SP&M case study
Be able to infer, the implications for board perpetuation
Enterprise Risk Management (ERM) Practices
This session will explore the concepts of Enterprise Risk Management (ERM): what it is, how companies utilize a strategic ERM policy, ways for a board to monitor, and how to best implement an effective strategy.
Understanding of the essential elements of ERM and its importance to the insurance business
Identification of company’s risks and the development of a dashboard approach to ERM
This session will provide Board members with an overview of executive compensation plans specifically designed for insurance companies. We will discuss how to integrate compensation and business strategies. We will outline the variety of pay elements; the different types of pay plans; how companies use the market, and other methods to establish target compensation levels for executives. We will also discuss how Board members should react to policyholders’ perception that all executives are unjustly paid.
Reviewing Today’s Environment
Balancing Risk and Compensation
Examining Total Compensation’s Philosophy and package to include: Base Salary, Incentives, Performance Objectives, Benefits and Perquisites
Board Succession Planning
This session will focus on understanding the importance of board succession planning as part of a director’s fiduciary duty to the organization and the benefits of a well-defined/orchestrated succession plan; structuring the board to help achieve strategic goals and become future oriented; utilizing a skills assessment to focus recruitment efforts; and creating a process to recruit and attract new board members.
Understanding the importance of board succession planning as part of a director’s fiduciary duty to the organization and the benefits of a well-defined/orchestrated succession plan;
Structuring the board to help the Mutual achieve its strategic goals and become future oriented
Utilizing a skills assessment to focus recruitment efforts; and
Creating a process to recruit and attract new board members
The Board’s Role in Strategic Planning
This session will be a discussion on basic principles of corporate governance for a 501(c)(6) organization; the board and its role and functions; the interests that a board member of a mutual insurer must take into account in performing his or her duties; management and its role and functions; the important responsibilities of a board; and considerations are for making you a better board member in the current environment.
Understanding the role and duties of board members
Understanding the protections and limitations on such protections afforded to board members
Understanding the role and duties of management
Understanding the protections and limitations on such protections afforded to management
Understanding the differences between serving as a director of a for-profit organization and a nonprofit organization
The role, structure, and composition of board committees
The new governance era for nonprofit organizations
Utilizing board evaluations and the Board’s involvement in strategic planning
This session focuses on the principles underlying board assessment and development and understanding the risks of assessment if not properly done. In addition to the risks, an assessment of the benefits of board evaluation will be done. We will examine approaches to board evaluation and review the 360 degree evaluation process and board self-assessments. And finally we will discuss providing feedback of the results including feedback to the full board versus feedback to individual directors.
Presentation of board composition: Board Evaluations: Why? How? & Now What Do We Do?
Understanding the need to conduct board evaluations
Acting on the need to conduct board evaluations
Completing the process and following through on the results of the board evaluations
Is My Board Ready?
Posted: Monday, March 11, 2013 1:04:56 PM. Modified: Monday, March 11, 2013 3:33:54 PM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.