FNSSUP510 - Supervise insurance tender process assessment tool

Assessor Resource

FNSSUP510
Supervise insurance tender process

Assessment tool

Version 1.0
Issue Date: May 2024

This unit describes the skills and knowledge required to implement and supervise the insurance tender process with insurance bodies. It encompasses reviewing insurer arrangements, supervising and implementing the tender process and monitoring of ongoing service by the insurer.

It applies to individuals who use analytical skills and systematic approaches to liaise and negotiate tender arrangements with insurance bodies.

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 insurance arrangements	1.1 Review insurance arrangements as per trust deed, and organisational policy and procedures 1.2 Prepare criteria for insurer selection and confirm with relevant stakeholders 1.3 Implement selection process for choosing insurer, and demonstrate that this process is in best interests of members 1.4 Facilitate tendering process when necessary 1.5 Pass on tendering information to appropriate staff where required
2. Manage tender process	2.1 Establish agreement on selection criteria 2.2 Provide all relevant information to insurer as requested 2.3 Obtain from insurer all relevant information relating to fund 2.4 Demonstrate unbiased assessment of tenders on basis of relevant considerations 2.5 Negotiate policy terms and conditions with insurers 2.6 Undertake due diligence review of selected insurer 2.7 Review benefit design in line with membership profile
3. Implement group life insurance arrangement	3.1 Select appropriate insurer and document decision according to trust deed organisational procedures 3.2 Review policy document against organisational and trust deed requirements, highlighting any possible concerns fund may have with insurer before entering into formal agreement 3.3 Provide policy document and agreement to legal adviser for review before entering into legally binding agreement 3.4 Implement trustee decision on which insurer is responsible for claims if new insurer is appointed 3.5 Facilitate signing of agreement 3.6 Document and record accurately all information on organisational system 3.7 Communicate any benefit design changes with members and appropriate staff
4. Report on insurance strategy	4.1 Review insurance strategy to ensure it is compliant with relevant superannuation legislation and regulations 4.2 Monitor insurance arrangements and report to senior management against agreed service standards

Evidence of the ability to:

supervise the tender process, including preparing selection criteria, collecting appropriate data and investigating proposed insurer

negotiate, prepare or verify a policy document and agreement in a timely manner with different stakeholders

assess tenders against set selection criteria including the fundâ€™s trust deed

negotiate suitable outcomes with insurers.

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:

identify and describe the key features of relevant legislation, regulatory guidelines and industry sector codes of practice relevant to tender processes

describe the selection process for choosing an insurer appropriate to membership of the superannuation fund

outline Australian Prudential Regulation Authority (APRA) requirements relating to the engagement of an insurer

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

outline organisational policy and procedures relating to tender processes

outline the organisational information technology systems used in assessing insurance tender responses

outline the terms and conditions of insurance arrangements

describe common principles and methods of filing documentation

describe insurance terminology

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

insurance contracts

APRA Prudential Framework

group insurance arrangements

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 superannuation field of work and includes 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 insurance arrangements	1.1 Review insurance arrangements as per trust deed, and organisational policy and procedures 1.2 Prepare criteria for insurer selection and confirm with relevant stakeholders 1.3 Implement selection process for choosing insurer, and demonstrate that this process is in best interests of members 1.4 Facilitate tendering process when necessary 1.5 Pass on tendering information to appropriate staff where required
2. Manage tender process	2.1 Establish agreement on selection criteria 2.2 Provide all relevant information to insurer as requested 2.3 Obtain from insurer all relevant information relating to fund 2.4 Demonstrate unbiased assessment of tenders on basis of relevant considerations 2.5 Negotiate policy terms and conditions with insurers 2.6 Undertake due diligence review of selected insurer 2.7 Review benefit design in line with membership profile
3. Implement group life insurance arrangement	3.1 Select appropriate insurer and document decision according to trust deed organisational procedures 3.2 Review policy document against organisational and trust deed requirements, highlighting any possible concerns fund may have with insurer before entering into formal agreement 3.3 Provide policy document and agreement to legal adviser for review before entering into legally binding agreement 3.4 Implement trustee decision on which insurer is responsible for claims if new insurer is appointed 3.5 Facilitate signing of agreement 3.6 Document and record accurately all information on organisational system 3.7 Communicate any benefit design changes with members and appropriate staff
4. Report on insurance strategy	4.1 Review insurance strategy to ensure it is compliant with relevant superannuation legislation and regulations 4.2 Monitor insurance arrangements and report to senior management against agreed service standards