Assessor Resource

FNSISV505A
Determine risk rating for investment and insurance products

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to job roles involving specialist knowledge and functions such as underwriting 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 monitor and analyse risks and determine the risk rating associated with an existing or new investment or insurance product.

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:

interpret and apply organisation policy and procedures and compliance with legislation and regulations and industry codes of practice in monitoring, analysing and determining risk ratings

apply knowledge and skills in the area of risk identification and assessment.

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

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

highly developed communication skills to:

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

relate effectively to customers

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

well-developed numeracy and IT skills to:

interpret charts, graphs and statistical information and undertake related calculations

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

learning skills to maintain knowledge of changes to compliance legislation and requirements

problem solving skills to identify any issues that have the potential to impact on work outcomes and to develop options to resolve these issues when they arise

self-management skills for complying with ethical, legal and procedural requirements research and analysis skills for accessing and interpreting relevant information

organisational skills, including the ability to plan and sequence work

Required knowledge

basic actuarial principles

industry compliance requirements

industry market position relative to product/line of business

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

IT and communications systems

organisation policy, procedures, underwriting guidelines and authorities:

best underwriting guides (BUG)

loss control guides

organisation products

principles and methods of filing

reinsurance

relationship between underwriting and rate making

relevant legislation, regulatory guidelines and industry sector compliance requirements, such as the Insurance Contracts Act, Privacy Act, Trade Practices and Corporations Act

risk analysis/prevention methods and application

type of risk and probability of likely occurrence

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.

Insurance product types may include:

accidental damage

additional benefits

burglary/theft

business interruption

business special risks

commercial

commercial motor

construction risks

crop

defined events

domestic

electronic equipment

employee fraud

engineering plant

environment and pollution

fire and perils

general and products liability

glass

Industrial Special Risks (ISR)

livestock

machinery breakdown

money

multi-risk

other personal items

package contracts

personal accident and illness

professional indemnity

public liability

sprinkler leakage

transit

travel

directors and officers.

Investment product types may be within the following investment contexts :

management funds

unit trusts

superannuation.

Relevant information may include:

geographic and demographic data

insurance products, premiums, extent of insurance coverage and other conditions of the insurance contract

investment product information, data and trends

medical reports, rate tables and other documents and reference materials

new and renewal applications trends and data.

Organisational policies may include:

basis of actuarial analysis and decisions

risk assessment policies and procedural guidelines

underwriting policies and procedures.

Relevant personnel may include:

actuaries

intermediaries

managers or supervisors

marketing and sales personnel

other relevant organisation personnel

underwriters.

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
Product type is identified so that the nature of the risk can be identified and handled accordingly 
Relevant information is identified, monitored and collected 
The reliability and validity of the data is established 
Risk factors associated with a product are assessed against known exposure factors 
All information collected on risk factors for a product is analysed using appropriate methods and documented 
Need for additional information in order to further evaluate the risk is identified, collected and analysed 
Acceptability of risk is determined using all available information in accordance with organisation policy and procedures and underwriting guidelines 
Risk rating that minimises risk liability is established within delegated authority 
The basis for the risk rating decision is documented 
Compliance with relevant legislation and organisation policy is considered 
Risk rating information is documented in a format that may be used to guide underwriting and product/policy amendment decisions 
Results of research and analysis are presented to appropriate personnel in a clear, concise format 
Risk rating recommendations are reviewed against existing products and organisational policies 
Risk rating recommendations are finalised and relevant personnel notified 

Forms

Assessment Cover Sheet

FNSISV505A - Determine risk rating for investment and insurance products
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

FNSISV505A - Determine risk rating for investment and insurance products

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: