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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Determine risk acceptance criteria
   • Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy
   • Use available data to validate risk acceptance criteria
2. Seek information
   • Identify and collate accurate, reliable and up-to-date information in format suitable for analysis
3. Negotiate reinsurance for extraordinary risks
   • Identify need for, and level of, reinsurance appropriate to risk
   • Determine terms of reinsurance from available sources of information and in accordance with organisational policy
   • Negotiate reinsurance appropriate to anticipated exposure
4. Determine and advise terms and conditions of acceptance
   • Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure
   • Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines

Performance Evidence

Evidence of the ability to:

establish criteria and undertake risk assessment for extraordinary risks

negotiate reinsurance and establish and document appropriate terms and conditions.

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

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Knowledge Evidence

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

describe the types of extraordinary risks within the life insurance sector

define relevant medical terminology, and identify diseases and injuries that lead to extraordinary risks

describe the nature of liability arising out of extraordinary risks

list the relevant information required to assist with negotiating reinsurance

outline the relevant actuarial, financial and legislative requirements including the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and the Life Insurance Act

describe the methods used to mitigate risk through reinsurance

describe the key players in the reinsurance industry and their involvement in reinsurance.

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