Assessor Resource
FNSIBK503A
Provide personal advice in general insurance broking products and services (Tier 1)
Assessment tool
Version 1.0
Issue Date: May 2024
For those brokers seeking to meet ASIC training standards:
Personal advice is defined by ASIC in its regulatory guide relating to the conduct and training of financial service product advisers. This unit requires the application of skills and knowledge to identify where the consumer is seeking advice based on their personal needs rather than general product advice and to follow the appropriate steps to provide this level of tailored advice. It also requires clarification of the broker's role in providing this service.
Tier 1 general insurance products are defined by ASIC as:
personal sickness and accident insurance; and/or
general insurance products the licensee deems non-standard or complex
Personal sickness and accident insurance may be complex and the choices a client makes may have an increased potential to impact significantly the client's financial situation. Similarly, some general insurance products offered to clients are not straightforward or standard. In both cases, consumers place a greater reliance on the broker's competence for advice on these products and advisor training at the Tier 1 level is required.
It is used to provide ASIC Tier 1 adviser accreditation in personal advice for general insurance brokers when combined with the following units:
FNSIBK403A Implement an agreed insurance program for a broking client
FNSIBK506A Monitor broking clients
FNSIBK507A Review broking client service performance
FNSIBK508A Implement changes to broking client's insurance program
Apart from the advisory skills, there is a substantial generic, insurance core and specialist general insurance and insurance broking product knowledge component that must be developed by the adviser as part of the requirements to meet ASIC training standards for Tier 1 personal advice by an insurance broker.
For those broker dealing with wholesale/ business clients, the units undertaken in conjunction with:
FNSIBK505A Undertake risk analysis for an insurance broking client
FNSIBK401A Research and analyse client and industry information for a broking risk assessment
This unit applies to insurance broking roles and may be applied within organisations of various sizes and across a range of customer bases.
This unit describes the performance outcomes, skills and knowledge required to advise retail and/or wholesale clients in non-standard general insurance broking products and services.
This unit requires the application of risk assessment and analysis skills and product knowledge to enable the preparation of a tailored insurance program for a new broking client or remarketing to a current client. It may be applied in the context of marketing an existing insurance scheme offered by the brokerage or one-off business. In the case of scheme business, Element 7 below is not required to be completed.
This unit is applicable to individuals working within insurance broking enterprises and in broking adviser roles subject to licensing regulation by the Australian Securities and Investments Commission (ASIC). It covers the functions undertaken by an insurance broker providing personal advice in Tier 1 retail general insurance.
Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC.
You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)