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.

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)

Not applicable.

This unit contains employability skills.

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit	Evidence of the ability to: maintain and apply knowledge of products and specialist knowledge of general insurance products, practices, global markets and exposures apply knowledge in practical situations to tailor specific advice to the client comply with industry and organisation obligations and objectives accurately interpret available information about the client’s risk needs and products apply discretion and judgement in developing an appropriate solution.
Context of and specific resources for assessment	Assessment must ensure: competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment access to and the use of a range of common office equipment, technology, software and consumables access to organisation records access to organisation policies and procedures.
Method of assessment	A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit: evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency observing processes and procedures in workplaces verbal or written questioning on underpinning knowledge and skills evaluating samples of work accessing and validating third party reports setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

well-developed communication skills to:

negotiate with clients and others

determine and confirm information, using questioning and active listening techniques

gather information and negotiate to obtain agreed outcomes

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform calculations related to achieving required outcomes

use data collection and analysis to identify client needs

use appropriate calculators or statistics to determine insurance cover requirements

identify product information and access appropriate databases and spreadsheets

use computer applications (word processing, spreadsheet, database, specific purpose computer systems) to assist in achieving required outcomes

access and update records electronically

access web-based information services

well-developed literacy skills to:

read and interpret documentation from a variety of sources and record and consolidate relevant related information

prepare submissions

product research and analysis skills for accessing and interpreting relevant information and formulating recommendations

interpersonal skills

organisational skills, including the ability to plan and sequence work

needs analysis skills.

Required knowledge

core insurance knowledge:

operation of insurance markets: definition of an insurance product, characteristics and participants of the Australian insurance market, the roles played by intermediaries

insurance products: types of insurance general insurance and risk insurance products, conditions, inclusions and exclusions, levels of coverage of risk transfer products, pricing

taxation: awareness of taxation issues in relation to the products

advisory functions:

the role of the broker/representative/adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

legal environment - disclosure and compliance:

the role of the broker/representative/adviser

relevant legal principles (e.g. Corporations Act, Financial Services Reform Act (FSRA), Trade Practices Act)

the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith)

full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser’s recommendation

Insurance Brokers Code of Practice and organisational codes of conduct

internal and external (FOS) complaints resolution procedures.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Level of insurance broking advice may include:	extent of client’s enquiry, complexity of advice requested and financial literacy of the client.
Disclosure documents and information may include:	financial services guide product disclosure statement statement of advice.
Client objectives and goals may include:	business needs expectations of product coverage insurer security.
Risk assessment process may include:	amendments assessor reports broker slips checklists claims history reports legal cases pre-underwriting report previous insurers proposals specialist risk reports surveys.
Significant changes may involve:	complex technical determinations high monetary impact important client base.
Scaled and suitable advice:	has a specific definition in the ASIC guidelines on disclosure and conduct of advisers in its regulatory guides
Restricted words may include:	impartial independent unbiased.
Terms of cover may include:	deductibles/excesses required limit of liability/sub-limits price scope of cover security of carrier.
Submission may include:	conceptual quotation firm quotation to prospective clients.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice	Yes	No	Comments/feedback
A range of communication and interpersonal skills are used to establish the knowledge level of client and clarify the level of insurance broking advice to be provided
Broker authorisation to deal with the client’s needs is established and referral to appropriate adviser for higher level/specialist advice made, if required
Enquiries are responded to by explaining the range of general insurance products and broking services available and their relevant fee and charging methodology
Role of the broker and the licensee/principal responsible for the adviser’s conduct is advised to the client
Regulations, codes and procedures set out in organisation compliance manuals for the personal advice process are complied with including delivery of appropriate disclosure documents and information about complaints handling processes
A range of communication and interpersonal skills are used to establish client objectives and goals
Nature of submission required by prospective client is determined
Skill requirements to prepare submission are identified
The need for specialist advice or client industry information is sought if required to address issues that professional judgement indicates may require further consideration
Consultants with required skills are identified and retained as required
Team is established with team leader identified as required
Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details
Risk assessment is completed in compliance with guidelines
Comprehensive records are maintained of risk assessment and actions taken
All information from the client risk assessment process is analysed
Comprehensive records of risks assessed and actions taken are checked to ensure information is current and comprehensive
Required insurance program and/or products are fully identified using an appropriate checklist
Clients are consulted throughout the analysis for further clarification where necessary
Follow up questioning to ensure that the client understood earlier questions and that information received by them is relevant and complete is undertaken
Appropriate insurance/risk management program based on risk assessment and client needs is determined
Proposed program is compared with appropriate checklist and other similar clients and significant changes identified
Available options are identified and assessed using information from risk analysis
Relevant product research is conducted
Advice for presentation to the client is prepared in accordance with organisational policy
Checks to ensure the advice has been scaled and suitable to the requirements of the advice situation are made
Checks that restricted words are used appropriately in the delivery of advice are made
Checks are made that the reasoning behind the advice and any conflicts of interest that affect the advice have been disclosed are made
Where applicable, availability of a market with suitable terms for the client requirements is identified
Where applicable, indicative terms of cover are sourced with insurers to provide the most beneficial outcome for the prospective client
Required written submission is provided to client in format required by the organisation
Options that specify benefits and advantages are identified for the prospective client
Features of the advice are explained to the client in a clear and unambiguous way
Relevant details, terms and conditions of the underlying products/services are explained to the client
Requirements to put the recommended program into effect are explained to the client
Client is provided with written supporting documentation and guided through the key aspects of the documentation
Distribution of relevant disclosure documents is established

Assessment Cover Sheet

FNSIBK503B - Provide personal advice in general insurance broking products and services

Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSIBK503B - Provide personal advice in general insurance broking products and services

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: