Assessor Resource

FNSISV301A
Evaluate risk for renewal business

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to job roles in a range of insurance sectors 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 evaluate the risk for renewal business including gathering the risk information, and reviewing and assessing it against appropriate risk criteria such as underwriting risk.

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 is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Employability Skills

This unit contains employability skills.



Evidence Required

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:

understand and apply all relevant legal obligations and organisation procedures when identifying and evaluating risks for renewal business

maintain and apply sound understanding of relevant organisation products and services

follow relevant underwriting guidelines and procedures

identify and investigate risk as it relates to renewal business in accordance with underwriting and organisation guidelines

document risk assessment data in accordance with organisation guidelines.

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 organisational 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.

Guidance information for assessment

Submission Requirements

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)

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

communication skills to:

determine and confirm information, using questioning and active listening as required

relate to customers

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 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

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

research and analysis skills for accessing and interpreting relevant information

organisational skills, including the ability to plan and sequence work

Required knowledge

application of Financial Services Reform legislation

organisation or industry sector policy wording

organisation policy, procedures, underwriting guidelines and authorities

organisation products

industry market position relative to product/line of business

industry sector compliance requirements such as the General Insurance Code of Practice

Insurance Contracts Act, Insurance (Agents and Brokers) Act, Trade Practices Act, other statutory requirements

interim cover as it relates to expiry of contracts and cancellations (Insurance Contracts Act ss. 38, 58)

OHS requirements

reinsurance, treaty and facultative policies

relevant common law, legal systems and procedures

risk prevention methods and application

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.

Client history may include:

claims records

financial results

number and type of policies

time insured.

Reports may include:

pre-underwriting reports which are usually computer reports on policy premiums and claims

reports regarding reinsurance requirements and changes in the physical risk exposure.

Legislative and compliance requirements may include:

codes of practice

Corporations Act

Financial Services Reform Act (FSRA)

relevant Australian Securities and Investments Commission (ASIC) requirements.

Sources of information may include:

amendments

assessor reports

broker slips

claims

customer duties of disclosure and renewal

proposals

stock exchange

surveys

telephone contacts.

Risk acceptance criteria may include:

claims history

class of business

driving and/or accident history

locality

minimum security levels.

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
Information is gathered in accordance with organisation guidelines on risk changes since prior acceptance, if required 
Any claims on risk are identified 
Information is gathered on client history if applicable 
Surveys/reports are commissioned if applicable to risk 
Exception reporting is utilised if applicable 
Legislative and compliance requirements are adhered to in all cases 
Information is reviewed to determine its relevance and reliability 
Any claims on risk are checked and documented 
Compliance with risk management conditions is checked 
Risk acceptance criteria/net retentions are checked for any changes over past period 
Risk information is compared against risk acceptance criteria and procedures to assess acceptability of risk 
Liaison with other internal departments is conducted to assess impact on business if applicable 
Risk assessment data is documented according to organisation policy and procedures 

Forms

Assessment Cover Sheet

FNSISV301A - Evaluate risk for renewal business
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

FNSISV301A - Evaluate risk for renewal business

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: