With an objective to equip members of the Institute to become world- class Insurance and Risk Management professionals, and Insurance consultants and to help members leverage opportunities in the rapidly evolving insurance sector, take on multiple roles & responsibilities and assume leadership in this sector, the Institute has constituted the Committee on Insurance and Pension (COIP) as a non-standing Committee. In order to realize these objectives, the COIP has been conducting a Post Qualification Course (Diploma) in Insurance and Risk Management (DIRM / IRM), which offers a rich curriculum that sets the learning standards in Insurance and Risk Management. This course seeks to provide CAs a competitive edge in the insurance industry.

The good news about the insurance sector is - that with globalisation and deregulation worldwide, insurance can reach more people. Besides, with increasing competition, it offers more innovative products and services to individuals as well as the industry. The bad news is - that the business is more complex than ever. But the best news is - that the sector is opening up several avenues for professionals like Chartered Accountants.

Insurance, worldwide, is one of the most potent financial sectors generating, every year, billions of dollars as revenues. With the rapid development of technology, changing consumer behaviour and increasing private participation & foreign equity, insurance companies have shifted their focus to providing greater value to the customer with a wide range of products. And this is a big challenge.

Devising specific strategies to reach out to specific segments of the market, different countries and social strata, is one aspect of the challenge. The other more complex one entails - designing the products, marketing them, ensuring the smooth selling of products, collecting premiums, managing claims, managing & investing the funds and managing a vast enterprise.

Insurance companies are trustees to huge amounts of public money collected in the form of premiums. Hence insurance professionals require an unusually high level of ethics and integrity. They must manage complexity at several levels - strategy, advisory services, marketing, loss assessment, third party administration, operations & finances audit, investment management, compliance with IRDA etc. What they need is - specialised knowledge of insurance, an expertise in finance & accounts, and the ability to assess, plan and manage money. Needless to say, there is a dearth of professionals who can play this role.

There is a great role to be played by Chartered Accountants in Indian Insurance Industry… to translate the potential for growth into a reality; to play a crucial role in the development and success of the industry; to add their touch of professional acumen and service for the many existing and emerging domains in this sunrise sector. All this means… opportunities unlimited, for CAs, who can acquire the cutting-edge knowledge and a clear perspective of the industry as it evolves.

The DIRM course, one of the significant endeavour of the COIP, is a high focus and high value post-qualification course, which will transform the skills of both CAs in practice as well as those in service.

The IRM course is tailor-made for CAs, who wish to emerge as preferred professionals in the insurance sector. The contemporary curriculum and comprehensive course material provide inputs required to comprehend the nitty-gritties of the industry. The Orientation Course will provide an opportunity to interface with experts in the field and gain a better understanding of the industry.

CAs are known for their keen analytical ability, excellent technical skills and meticulous working style. Their vast experience in professional interaction with people bears testimony to their effective communication and interpersonal skills. They belong to a community that has the innate ability to assimilate new information and understand the dynamics of change. Above all, they possess the technical acumen that the profession demands and the integrity that the industry needs.

All that Chartered Accountants need to emerge as insurance specialists, is industry-specific knowledge... something that the DIRM course best provides.

The plethora of opportunities provide different avenues for CAs in practice and in service. While practising CAs can prove invaluable to corporates entering the market by offering services such as entry strategy and strategic planning, there are high growth-oriented career opportunities for CAs in service as well. The ability to take on financial planning, estate planning, trust management and the like, makes CAs the ideal choice in the area of Investment Management. Be it the area of audit, Information Technology, investment management, accounting or advisory services, IRM provides the cutting edge to these well-rounded professionals.

l Survey and Loss Assessment
l Insurance Broking
l New Product and Service Development
l Underwriting l Claims Management
l Commercial Risks l Insurance Litigation

The IRM course is offered in the distance learning mode delivered through course material. It follows an integrated learning approach consisting of multiple stages, synergising theory and practice. The stages are designed to effectively build up in-depth knowledge and practical application skills. The IRM course identifies the knowledge and skill requirements of contemporary insurance and risk management professionals, and promotes industry-readiness, through self as well as community learning. The methodology is structured to equip members with expertise in Insurance and Risk Management to effectively service this industry. It includes:

l Books & Periodicals
l Theoretical Training (Self-study)
l Eligibility Tests (ETs)

Varying degrees of importance are given to Self-study and ETs conducted prior to the Technical Examination. These help candidates to achieve a higher level of proficiency. While Self-study gives candidates a firm grounding in theory, practical exposure to industry practices takes place through a variety of activities like seminars, conventions etc.

For complete details (covering registration procedure, course duration, overall scheme, details of technical examination and the orientation course) please see its prospectus at http://icai.org:7777/icairoot/announcements/announ502.pdf. For hard copy of the prospectus, please arrange to send a pay order / Demand Draft payable at Delhi / New Delhi for Rs. 150/- drawn in favour of the Secretary, The Institute of Chartered Accountants of India.

The Diploma in Insurance & Risk Management course is very useful in providing insights into areas of Risk management and Insurance. The function of Risk Management assumes greater importance in view of the expected implementation of Basel II norms in Finance Industry and the exponential growth in outsourcing industry (ie. BPO/ITES/KPO etc.). So, Insurance and Risk Management are two sides of the same coin which are well integrated by our Institute - CA P.L. Narasimha Rao, Mumbai

DIRM gives the spark & fuel to get into Insurance concepts. A specialization on exploding Insurance business will give the Chartered Accountants the missing edge - CA. Sanjay Kadel

This course has made me realise that insurance is an interesting and vast field involving a no. of factors. It cannot be taken casually, I feel that I can advice my clients more authoritatively on the need for protection of their assets and managing their liabilities'. It is an eye opener to the insurance field – CA. Prasun Kumar Bhattacharyya

I did the course with the intension of developing my knowledge and skills as a professional risk manager, not necessarily limited to Insurance sector. The course did provide understanding into the risk management process with applicability to Risk based Auditing in audit planning, implementation and reporting of audit results. I feel the course can be further expanded to be a full-fledged Financial Risk Management course. – CA. G.Srinivas IAAS, Deputy Director, National Academy of Audit and Accounts, Shimla

There is a lot of potential of growth in insurance sector in coming years especially in India. Today is the world of specialisation, DIRM Course has equipped me with this perfection both theoretically as well as practically by providing suitable material and giving us the chance to be a part of the orientation course – CA. Punita Ahuja

Very useful informative course. It creates interest in insurance sector in such away that you are tempted to pursue Actuary course……….– CA. Kiran G Adivarekar

DIRM course is an excellent introductory course for the members aspiring to be an insurance professional……..– CA. Arpan Gupta.

1. Prepared by the sercretariat of the Committee on Insurance and Pension.
2. While most of the above services can be combined with general practice, certain of the services such as Insurance Broking, Thrid Party Administrator Services, Underwriting and Insurance Marketting cannot be combined with general practice.
3. The Institute will review and revise the course curriculum, teaching and training methodology from time to time, as may be required
4. Position as on 10th October, 2006.
5. Edited