Understand economics and explain the primary sectors that make up local, national, and global economies, as well as the different types of financial institutions and the roles they play in the economy.

Describe the three types of insurance companies and how their products can satisfy one or more of the four basic financial needs of customers.

Explain the steps in the control process and describe the important control mechanisms insurance companies use to measure, evaluate, and improve their operational performance, including risk management, profitability, and solvency.

Understand key financial concepts such and future and present value calculations.

Describe how insurers can use benchmarking, total quality management (TQM), Six Sigma, and Business Process Reengineering (BPR) to improve operating efficiency.

Explain how changes in price levels can affect insurance or financial services institutions.

Recognize essential information contained in the income statement and the balance sheet, as well as the purpose of cash flow and owners’ equity statements and Annual Reports.

Describe the three primary elements of a financial model and explain how insurers can use modeling to forecast future financial conditions.