WHARTON EXECUTIVE EDUCATION

PROPOSAL FOR COLLABORATION

with

INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS (IAIS) AND THE WORLD BANK

for THE INSURANCE SUPERVISION PROJECT

October 17, 2005

OBJECTIVES OF TODAY’S MEETING

To discuss Wharton’s proposal for design and delivery of an integrated educational solution for the IAIS membership that addresses the needs for programs for Insurance Supervisors and Regulators

PROPOSED AGENDA

• Introduction and Meeting Objectives• Our Understanding of the Program Rationale • How Wharton can Contribute• Program Structure: Academic Committee,

Elements, Structure, Design• Proposed Pricing Structure• Key Issues• Appendix

OUR UNDERSTANDING OF THE PROGRAM RATIONALE

• 13,000 insurance supervisors and regulators active globally in the profession and many come from different educational backgrounds without formal training in insurance supervision

• According to a World Bank/IMF study, insurance supervision is one of the weakest links in regulation and supervision, urgent need to build supervisory capacity within the sector

• Rapid changes in the professional environment • World Bank’s survey of the training/ learning marketplace in

insurance: existing programs do not meet the needs

OUR UNDERSTANDING OF THE PROGRAM RATIONALE

• The International Association of Insurance Supervisors (IAIS), and the World Bank Financial Sector Vice Presidency (FSE) combined forces to launch a project to develop a Core Curriculum on Insurance Supervision

• IAIS and The World Bank could benefit by partnering with a leading global academic institution that would support their continuing efforts by building upon the basic design that has been created

• Partner should have strong academic expertise and research

capabilities in the areas of Insurance and Risk Management

OUR UNDERSTANDING OF THE PROGRAM RATIONALE

• IAIS and The World Bank need support in the design, development and delivery of educational programs for three distinct target audiences: Junior level supervisors Middle level supervisors Senior level policymakers

• Proposed program should facilitate networking amongst academics, policymakers and regulators

• Absence of credible certification in this area

HOW WHARTON CAN CONTRIBUTE

• Wharton proposes an integrated solution: three pronged approach

• Integration effects change at all organizational levels and

facilitates learning of a shared language and vocabulary• Policy Seminars: an important “feeder” role• Wharton: Strong competencies in the areas of Insurance

and Risk Management• Wharton Executive Education : sound track record of

design and executive education delivery capabilities at all levels in multiple international locations

PROGRAM STRUCTURE, DESIGN AND COVERAGE

Proposed Joint Academic Committee

• Composition: IAIS, World Bank, Wharton faculty and staff• Role

To ensure that program vision and objectives are met To ensure that all aspects of program are well integrated To oversee program strategy and design To define roles of individual partners To review the effectiveness of the program on ongoing basis

PROPOSED PROGRAM STRUCTURE

BASIC PROGRAM STRUCTURE

FOUR PHASES OF THE BASIC PROGRAM

(4 months including 5 weeks residential)

• PRE-PROGRAM PHASE (Self-study: Fundamentals)• PHASE 1 (Residential at Wharton, 3 weeks: Finance, Insurance

Economics, Regulatory Frameworks and Implementation)• PHASE 2 ( Work-study, about 3 months: Workplace

applications) integrated with GDLN and FSAP• PHASE 3 (Residential at Wharton, 2 weeks: Risk & Valuation,

Concepts & Implementation)

BASIC PROGRAM: APPROACH

• Curriculum linked closely to the Core Principles • Wharton proposes additional Introductory Module : Finance,

Insurance Economics and Markets• Pedagogy: Lectures, small group discussions, distance learning• Assessment: 2 examinations, “supervised learning” project• Collaborative teaching model: Wharton, World Bank, IAIS

faculty (fulltime, adjuncts, associates)• Proposed Pilot Launch: March (Phase 1), July (Phase 3)• Proposed Class size of 50

ADVANCED PROGRAM STRUCTURE

THREE PHASES OF THE ADVANCED PROGRAM

(3 months including 3 weeks residential)

• PHASE 1 (Residential at Wharton: 2 weeks, Insurance and Risk Management and General Management Components)

• PHASE 2 ( Work-study, about 2.5 months: Workplace applications)

• PHASE 3 (Residential at Wharton, 1 week: same as above)

ADVANCED PROGRAM: APPROACH

• Wharton’s approach: Strategic and integrative as opposed to “drilling down” on basic themes

• Financial and Management components• Three Phases spread over 3 months• Pedagogy: Lecture, seminars, distance learning• One examination, one major project• Proposed Pilot launch: Fall 2006• Proposed Class Size: 50

POLICY SEMINARS

• Forum for academics, policymakers and regulators• Ongoing basis, 2-3 a year• Feeds ideas and themes into the Advanced and Basic

Programs• Leverages key strengths of Wharton faculty• 2-3 days residential at Wharton• Outcomes: Brief “White Paper”, networking • Possible themes: Resolution of Insolvencies, Risk-focused

supervision, Early Warning Systems Policyholder Protection Schemes, Demutualization, Supervisory structures, Risk based Capital standards

PROPOSED PRICING

PROGRAM FEE

BASIC PROGRAM : 4 Months including 5 weeks residential $ 29,000 per participant ADVANCED PROGRAM : 3 months including 3 weeks residential-

$18,000 per participant POLICY SEMINARS: 3 days residential- $3,000 per participant, $2,460

non-residential

DESIGN AND DEVELOPMENT FEEBasic Program: $250,000Advanced Programs: $225,000

OTHER EXPENSES Faculty and staff travel etc

KEY ISSUES

• Program development funding• Pricing/Demand Considerations• Integration with other learning initiatives• Formation of joint Academic Committee• Finalize program design, development and delivery for all three

elements of the integrated program• Delivery dates for Basic, Advanced and Policy Seminars • Decision on branding• Development of joint marketing plan

APPENDIX

Wharton Resources and Capabilities

(for information only)

THE WHARTON SCHOOL

• Founded in 1881 as the nation's first collegiate business school.

• World's largest, most cited faculty with 280 standing and associate members.

• Leading undergraduate, MBA, PhD, and executive programs.

• More than 100,000 alumni and past participants in 139 countries around the world.

• State-of-the-art academic facilities in Philadelphia and San Francisco.

Folger BuildingSan Francisco Campus

Jon M. Huntsman HallPhiladelphia Campus

ACADEMIC BREATH AND DEPTH

Academic Departments

• Accounting• Finance• Health Care Systems• Insurance and Risk

Management• Legal Studies• Management• Marketing• Operations and Information

Management• Public Policy and Management• Real Estate• Statistics

Research Centers

• Center for Health Management and Economics• Center for Human Resources• Center for Leadership and Change Management• Financial Institutions Center• Fishman-Davidson Center for Service and Operations

Management• S.S. Huebner Foundation for Insurance Education• Huntsman Center for Global Competition and

Innovation• Reginald H. Jones Center for Management Policy,

Strategy, and Organization• Leonard Davis Institute of Health Economics• Pension Research Council• Risk Management and Decision Processes Center• SEI Center for Advanced Studies in Management• Sol C. Snider Entrepreneurial Research Center• Weiss Center for International Financial Research • Rodney L. White Center for Financial Research• Samuel Zell and Robert Lurie Real Estate Center• Carol and Lawrence Zicklin Center for Business

Ethics Research

INTELLECTUAL LEADERSHIP

Faculty articles in peer review publications (2000 to 2005)

Source: University of Texas, Dallas

292

164 162 153 138 132 130

• 8,000 executives attend annually

• Open Enrollment Programs: 63/year — 40% of business

• Custom Programs: 147— 60% of business

• Longest running executive education program: SII, since 1953

• Steinberg Conference Center: completed in 1988, expanded 2000

• Wharton West opened in 2001

• INSEAD Alliance: France and Singapore

WHARTON EXECUTIVE EDUCATION

MULTIPLE LEARNING APPROACHES

Seminar

Small group

activity

Supervised Learning Project

Mini-cases

Simulation

Lectures

Case-studies

Coaching

DEDICATED CLIENT SERVICE TEAM

Program Director

Academic Director

• Jointly responsible for program design, delivery, faculty coordination and ensuring client needs are met

• PD is typically first point of contact

Program Manager

ProgramCoordinator

TeachingFacultyTeaching

FacultyTeachingFaculty

• Responsible for individual sessions

• Oversee all delivery and administrative details