Assessor Resource

FNSISV401
Evaluate risk for new business

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to evaluate risk for new business, including gathering the risk information, and reviewing and assessing it against appropriate risk criteria.

It applies to individuals performing underwriting roles in a range of insurance sectors in organisations of various sizes and across a range of client bases.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

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



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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and obtain risk information

1.1 Identify, record and gather all sources of risk information and rectify deficiencies

1.2 Review information to determine its relevance and reliability, and the integrity of its source

1.3 Format data for easy access

1.4 Adhere to legislative and compliance requirements in all cases

2. Assess information against established risk acceptance criteria

2.1 Assess all relevant risk information to determine if it is comprehensive and pertinent to nature of the risk

2.2 Review and commission surveys and/or reports, if applicable to risk

2.3 Interpret data on risk exposure from survey report

2.4 Compare risk information against risk acceptance criteria and organisational capacity to assess and accept risk according to terms and conditions of risk assessment

2.5 Liaise with other internal departments to assess impact on business, if applicable

2.6 Review and compare proposed amendments to organisational wording and compare to acceptance criteria

2.7 Document risk assessment data according to organisational policy and procedures

3. Issue quotation

3.1 Prepare quote based on all risk assessment data

3.2 Communicate information regarding quote to relevant personnel if required

Evidence of the ability to:

interpret and comply with all relevant legal obligations and organisational procedures

identify and thoroughly assess risks to develop a suitable insurance quote for a new business

prepare a quote accurately, applying relevant underwriting guidelines

identify and investigate risk as it relates to new business in accordance with underwriting and organisational guidelines

accurately document risk assessment data in accordance with organisational guidelines

identify and apply risk acceptance criteria for insurance products.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

describe key features of relevant legislative requirements and industry regulations in the context of insurance risk

describe the potential market share for the product or line of business

explain the importance of wording of insurance policies in line with industry norms

identify key features of organisational policy, procedures, underwriting guidelines and authorities

describe insurance risks associated with organisational products

define the difference between treaty and facultative reinsurance

outline relative industry hazards associated with insurance products

explain the application of relevant common law, legal systems and procedures relating to:

insurance contracts

insurance agents and brokers

competition and consumer practices

describe ‘interim cover’ as it relates to expiry and cancellations of contracts

describe risk prevention methods and application.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance services field of work and include access to:

organisational records

organisational policy, procedures, legislation and regulations as they relate to insurance risk

a range of common technology and software.

Assessors must satisfy NVR/AQTF assessor requirements.


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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and obtain risk information

1.1 Identify, record and gather all sources of risk information and rectify deficiencies

1.2 Review information to determine its relevance and reliability, and the integrity of its source

1.3 Format data for easy access

1.4 Adhere to legislative and compliance requirements in all cases

2. Assess information against established risk acceptance criteria

2.1 Assess all relevant risk information to determine if it is comprehensive and pertinent to nature of the risk

2.2 Review and commission surveys and/or reports, if applicable to risk

2.3 Interpret data on risk exposure from survey report

2.4 Compare risk information against risk acceptance criteria and organisational capacity to assess and accept risk according to terms and conditions of risk assessment

2.5 Liaise with other internal departments to assess impact on business, if applicable

2.6 Review and compare proposed amendments to organisational wording and compare to acceptance criteria

2.7 Document risk assessment data according to organisational policy and procedures

3. Issue quotation

3.1 Prepare quote based on all risk assessment data

3.2 Communicate information regarding quote to relevant personnel if required

Evidence of the ability to:

interpret and comply with all relevant legal obligations and organisational procedures

identify and thoroughly assess risks to develop a suitable insurance quote for a new business

prepare a quote accurately, applying relevant underwriting guidelines

identify and investigate risk as it relates to new business in accordance with underwriting and organisational guidelines

accurately document risk assessment data in accordance with organisational guidelines

identify and apply risk acceptance criteria for insurance products.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

describe key features of relevant legislative requirements and industry regulations in the context of insurance risk

describe the potential market share for the product or line of business

explain the importance of wording of insurance policies in line with industry norms

identify key features of organisational policy, procedures, underwriting guidelines and authorities

describe insurance risks associated with organisational products

define the difference between treaty and facultative reinsurance

outline relative industry hazards associated with insurance products

explain the application of relevant common law, legal systems and procedures relating to:

insurance contracts

insurance agents and brokers

competition and consumer practices

describe ‘interim cover’ as it relates to expiry and cancellations of contracts

describe risk prevention methods and application.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance services field of work and include access to:

organisational records

organisational policy, procedures, legislation and regulations as they relate to insurance risk

a range of common technology and software.

Assessors must satisfy NVR/AQTF assessor requirements.

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
Identify, record and gather all sources of risk information and rectify deficiencies 
Review information to determine its relevance and reliability, and the integrity of its source 
Format data for easy access 
Adhere to legislative and compliance requirements in all cases 
Assess all relevant risk information to determine if it is comprehensive and pertinent to nature of the risk 
Review and commission surveys and/or reports, if applicable to risk 
Interpret data on risk exposure from survey report 
Compare risk information against risk acceptance criteria and organisational capacity to assess and accept risk according to terms and conditions of risk assessment 
Liaise with other internal departments to assess impact on business, if applicable 
Review and compare proposed amendments to organisational wording and compare to acceptance criteria 
Document risk assessment data according to organisational policy and procedures 
Prepare quote based on all risk assessment data 
Communicate information regarding quote to relevant personnel if required 

Forms

Assessment Cover Sheet

FNSISV401 - Evaluate risk for new 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:

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Assessment Record Sheet

FNSISV401 - Evaluate risk for new 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: