Assessor Resource

FNSISV504
Negotiate treaty reinsurance

Assessment tool

Version 1.0
Issue Date: April 2024


This unit describes the skills and knowledge required to analyse, prepare and negotiate reinsurance in accordance with organisational guidelines and procedures.

It applies to individuals working in job roles involving specialist knowledge and functions in a range of insurance sectors and may be applied within 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. Prepare reinsurance tender

1.1 Review previous tender arrangements and documents, where they exist

1.2 Prepare and check information relating to treaty reinsurance tender

1.3 Check completeness of information

1.4 Confirm coverage of claim, or series of claims, under specific client, policy or treaty

1.5 Prepare tendering conditions in line with organisational procedures, guidelines and authorities, context, and treaty and facultative obligations

1.6 Prepare and confirm criteria for supplier selection

1.7 Record accurately all tender information

1.8 Pass on tendering information to appropriate staff, where required

2. Select reinsurance supplier

2.1 Notify relevant reinsurers of tender conditions and details under relevant reinsurance tendering arrangements

2.2 Request tender response from reinsurer in line with organisational procedures, guidelines and authorities within accepted timeframes and guidelines

2.3 Review reinsurance supplier tenders and evaluate against set selection criteria

2.4 Record accurately all tender information

3. Manage transactions for treaty

3.1 Calculate recovery of whole claim, including reinstatements for policy terms and conditions, and from which treaty it is to be recovered

3.2 Manage transactions

3.3 Check and accurately record all information

4. Negotiate terms and conditions of agreement

4.1 Negotiate policy terms and conditions with selected reinsurers

4.2 Document and record accurately all information on system

4.3 Pass on reinsurer information to appropriate staff, where required

Evidence of the ability to:

accurately compile a tender document, including collection of appropriate data and selection of appropriate methods of protection

negotiate, prepare or verify a contract in a timely manner with different stakeholders

calculate the whole claim including reinstatements for policy terms and conditions

assess tenders against set selection criteria

negotiate suitable outcomes with reinsurers.

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:

explain different types of treaties

identify and describe key features of relevant legislation, regulatory guidelines and industry sector codes of practice

explain the importance of wording of insurance policies in keeping with the organisation or industry sector

outline organisational policy, procedures, underwriting guidelines and authorities:

best underwriting guides (BUG)

loss control guides

outline organisational information technology systems used in assessing reinsurance tender responses

outline terms and conditions of reinsurance arrangements

describe common principles and methods of filing documentation

describe reinsurance terminology and concepts including:

any one risk

any one event

reinstatement premium

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements as they apply to:

insurance contracts

consumer protection

financial services

corporations.

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 contracts of insurance

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. Prepare reinsurance tender

1.1 Review previous tender arrangements and documents, where they exist

1.2 Prepare and check information relating to treaty reinsurance tender

1.3 Check completeness of information

1.4 Confirm coverage of claim, or series of claims, under specific client, policy or treaty

1.5 Prepare tendering conditions in line with organisational procedures, guidelines and authorities, context, and treaty and facultative obligations

1.6 Prepare and confirm criteria for supplier selection

1.7 Record accurately all tender information

1.8 Pass on tendering information to appropriate staff, where required

2. Select reinsurance supplier

2.1 Notify relevant reinsurers of tender conditions and details under relevant reinsurance tendering arrangements

2.2 Request tender response from reinsurer in line with organisational procedures, guidelines and authorities within accepted timeframes and guidelines

2.3 Review reinsurance supplier tenders and evaluate against set selection criteria

2.4 Record accurately all tender information

3. Manage transactions for treaty

3.1 Calculate recovery of whole claim, including reinstatements for policy terms and conditions, and from which treaty it is to be recovered

3.2 Manage transactions

3.3 Check and accurately record all information

4. Negotiate terms and conditions of agreement

4.1 Negotiate policy terms and conditions with selected reinsurers

4.2 Document and record accurately all information on system

4.3 Pass on reinsurer information to appropriate staff, where required

Evidence of the ability to:

accurately compile a tender document, including collection of appropriate data and selection of appropriate methods of protection

negotiate, prepare or verify a contract in a timely manner with different stakeholders

calculate the whole claim including reinstatements for policy terms and conditions

assess tenders against set selection criteria

negotiate suitable outcomes with reinsurers.

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:

explain different types of treaties

identify and describe key features of relevant legislation, regulatory guidelines and industry sector codes of practice

explain the importance of wording of insurance policies in keeping with the organisation or industry sector

outline organisational policy, procedures, underwriting guidelines and authorities:

best underwriting guides (BUG)

loss control guides

outline organisational information technology systems used in assessing reinsurance tender responses

outline terms and conditions of reinsurance arrangements

describe common principles and methods of filing documentation

describe reinsurance terminology and concepts including:

any one risk

any one event

reinstatement premium

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements as they apply to:

insurance contracts

consumer protection

financial services

corporations.

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 contracts of insurance

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
Review previous tender arrangements and documents, where they exist 
Prepare and check information relating to treaty reinsurance tender 
Check completeness of information 
Confirm coverage of claim, or series of claims, under specific client, policy or treaty 
Prepare tendering conditions in line with organisational procedures, guidelines and authorities, context, and treaty and facultative obligations 
Prepare and confirm criteria for supplier selection 
Record accurately all tender information 
Pass on tendering information to appropriate staff, where required 
Notify relevant reinsurers of tender conditions and details under relevant reinsurance tendering arrangements 
Request tender response from reinsurer in line with organisational procedures, guidelines and authorities within accepted timeframes and guidelines 
Review reinsurance supplier tenders and evaluate against set selection criteria 
Record accurately all tender information 
Calculate recovery of whole claim, including reinstatements for policy terms and conditions, and from which treaty it is to be recovered 
Manage transactions 
Check and accurately record all information 
Negotiate policy terms and conditions with selected reinsurers 
Document and record accurately all information on system 
Pass on reinsurer information to appropriate staff, where required 

Forms

Assessment Cover Sheet

FNSISV504 - Negotiate treaty reinsurance
Assessment task 1: [title]

Student name:

Student ID:

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

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Result: Competent Not yet competent

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Assessor name:

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Assessment Record Sheet

FNSISV504 - Negotiate treaty reinsurance

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:

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