Assessor Resource

FNSISV514
Review and update claim reserves in portfolio

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to review and update insurance claims reserves in a portfolio to minimise losses. It encompasses identifying and analysing claims, reserves trends data, legislation and regulations, reports and related documents, monitoring funds, interpreting the results and reporting on the findings to minimise losses.

It applies to individuals working in claims management 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. Review claims reserves and monitor funds

1.1 Review claims reserves regularly to ensure they accurately reflect expectations

1.2 Monitor funds to ensure adequate reserves exist to pay claims as they fall due for payment

1.3 Provide accurate data to assist underwriters to identify and charge appropriate policy premiums

2. Support claims staff in claims reserve activities

2.1 Ensure claims coordination staff are supported, as required, to identify accurate initial claims reserves

2.2 Ensure claims coordination staff are supported, as required, in allocation of claims to appropriate claims specialists

3. Authorise payments, settlements and changes to reserves

3.1 Authorise payments, settlements and reserves changes that are requested or required by claims specialists but outside their delegated authority

4. Identify required changes to portfolio, claims reserves policy or procedures

4.1 Communicate identified information promptly to decision-makers in the management structure according to organisational procedures

4.2 Instigate changes to policy and procedures to minimise claims losses in similar circumstances

Evidence of the ability to:

undertake high level data collection, financial analysis and monitoring of funds for managing claims reserves

apply effective communication and management skills related to the review, update and reporting in an insurance claims portfolio

accurately interpret and comply with relevant legislation, and claims and reserves trends.

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 data analysis techniques relating to claims reserves

outline industry trends in claims reserving policy and procedures

outline relevant information technology and communications systems required for determining claims reserves

outline key features of insurance guidelines, levels of authority and organisational policy, procedures and obligations in reserving

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

explain the reinsurance processes and implications on claims reserves

explain risk prevention and loss minimisation methods and application to claims reserves

explain types and categories of insurance policies

outline processes for authorising payments, settlements and reserves changes.

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. Review claims reserves and monitor funds

1.1 Review claims reserves regularly to ensure they accurately reflect expectations

1.2 Monitor funds to ensure adequate reserves exist to pay claims as they fall due for payment

1.3 Provide accurate data to assist underwriters to identify and charge appropriate policy premiums

2. Support claims staff in claims reserve activities

2.1 Ensure claims coordination staff are supported, as required, to identify accurate initial claims reserves

2.2 Ensure claims coordination staff are supported, as required, in allocation of claims to appropriate claims specialists

3. Authorise payments, settlements and changes to reserves

3.1 Authorise payments, settlements and reserves changes that are requested or required by claims specialists but outside their delegated authority

4. Identify required changes to portfolio, claims reserves policy or procedures

4.1 Communicate identified information promptly to decision-makers in the management structure according to organisational procedures

4.2 Instigate changes to policy and procedures to minimise claims losses in similar circumstances

Evidence of the ability to:

undertake high level data collection, financial analysis and monitoring of funds for managing claims reserves

apply effective communication and management skills related to the review, update and reporting in an insurance claims portfolio

accurately interpret and comply with relevant legislation, and claims and reserves trends.

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 data analysis techniques relating to claims reserves

outline industry trends in claims reserving policy and procedures

outline relevant information technology and communications systems required for determining claims reserves

outline key features of insurance guidelines, levels of authority and organisational policy, procedures and obligations in reserving

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

explain the reinsurance processes and implications on claims reserves

explain risk prevention and loss minimisation methods and application to claims reserves

explain types and categories of insurance policies

outline processes for authorising payments, settlements and reserves changes.

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 claims reserves regularly to ensure they accurately reflect expectations 
Monitor funds to ensure adequate reserves exist to pay claims as they fall due for payment 
Provide accurate data to assist underwriters to identify and charge appropriate policy premiums 
Ensure claims coordination staff are supported, as required, to identify accurate initial claims reserves 
Ensure claims coordination staff are supported, as required, in allocation of claims to appropriate claims specialists 
Authorise payments, settlements and reserves changes that are requested or required by claims specialists but outside their delegated authority 
Communicate identified information promptly to decision-makers in the management structure according to organisational procedures 
Instigate changes to policy and procedures to minimise claims losses in similar circumstances 

Forms

Assessment Cover Sheet

FNSISV514 - Review and update claim reserves in portfolio
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

FNSISV514 - Review and update claim reserves in portfolio

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: