Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSIBK504A Mapping and Delivery Guide
Provide personal advice in life insurance broking products and services (Tier 1)

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSIBK504A - Provide personal advice in life insurance broking products and services (Tier 1)
Description This unit describes the performance outcomes, skills and knowledge required to advise retail and/or wholesale clients in life insurance broking products and services. It encompasses preparation of an insurance program for a prospective new broking client or remarketing to an existing client.This unit is applicable to individuals working within an insurance broking or other financial services enterprise and in broking adviser roles subject to licensing regulation by the Australian Securities and Investments Commission (ASIC). It covers the functions undertaken by an insurance broker providing personal advice in life insurance.Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application For those brokers seeking to meet ASIC training standards:Personal advice is defined by ASIC in its regulatory guide relating to the conduct and training of financial service product advisers. This unit requires the application of skills and knowledge to identify where the consumer is seeking advice based on their personal needs rather than general product advice and to follow the appropriate steps to provide this level of tailored advice. It also requires clarification of the broker's role in providing this service.Life insurance products are defined by ASIC as complex and the choices a client makes may have an increased potential to impact significantly the client's financial situation. Consumers place a greater reliance on the broker's competency for advice on these products and adviser training at the Tier 1 level is required.It is used to provide ASIC Tier 1 adviser accreditation in personal advice for life insurance brokers when combined with the following units:FNSIBK403A Implement an agreed insurance program for a broking clientFNSIBK506A Monitor broking clientsFNSIBK507A Review broking client service performanceFNSIBK508A Implement changes to broking client's insurance programApart from the advisory skills, there is a substantial generic, insurance core and specialist life insurance and insurance broking product knowledge component that must be developed by the adviser as part of the requirements to meet ASIC training standards for Tier 1 personal advice by an insurance broker.For those brokers dealing with business clients, the unit is undertaken in conjunction with:FNSIBK505A Undertake risk analysis for an insurance broking clientFNSIBK401A Research and analyse client and industry information for a broking risk assessmentThis unit applies to insurance broking roles and may be applied within organisations of various sizes and across a range of customer bases.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Establish relationship with client
  • A range of communication and interpersonal skills are used to establish the knowledge level of client and clarify the level of insurance broking advice to be provided
  • Broker authorisation to deal with the client's needs is established and referral to appropriate adviser for higher level/specialist advice made, if required
  • Enquiries are responded to by explaining the range of life insurance products and broking services available and their relevant fee and charging methodology
  • Role of the broker and the licensee/principal responsible for the adviser's conduct is advised to the client
       
Element: Identify client objectives and risk situation
  • Regulations, codes and procedures set out in organisation compliance manuals for the personal advice process are complied with including delivery of appropriate disclosure documents and information about complaints handling processes
  • A range of communication and interpersonal skills are used to encourage the consumer to express their short-, medium- and long-term goals relevant to the product
  • Where relevant, a product risk profile of the client is identified, assessed and agreed
       
Element: Determine submission resource requirements
  • Nature of submission required by prospective client is determined
  • Skill requirements to prepare submission are identified
  • The need for specialist advice or client industry information is sought if required to address issues that professional judgement indicates may require further consideration.
  • Consultants with required skills are identified and retained as required
  • Team is established with team leader identified as required
       
Element: Apply risk assessment methodology
  • Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details
  • Risk assessment is completed in compliance with guidelines
  • Comprehensive records are maintained of risk assessment and actions taken
       
Element: Analyse client risk information
  • All information from the client risk assessment and profiling process is analysed
  • Comprehensive records of risks assessed and actions taken are checked to ensure information is current and comprehensive
  • Required insurance program and/or products are fully identified using an appropriate checklist
  • Clients are consulted throughout the analysis for further clarification where necessary
  • Follow-up questioning to ensure that the client understood earlier questions and that information received by them is relevant and complete is undertaken
       
Element: Identify appropriate insurance program
  • Appropriate insurance/risk management program based on risk assessment and client profile and needs is determined
  • Proposed program is compared with appropriate checklist and other similar clients and significant changes identified
  • Available options are identified and assessed using information from risk analysis
  • Relevant product research is conducted
  • Advice for presentation to the client is prepared in accordance with organisational policy
  • Checks to ensure the advice has been scaled and suitable to the requirements of the advice situation are made
  • Checks that restricted words are used appropriately in the delivery of advice are made
  • Checks are made that the reasoning behind the advice and any conflicts of interest that affect the advice have been disclosed are made
       
Element: Identify market availability
  • Where applicable, availability of a market with suitable terms for the client requirements is identified
  • Where applicable, indicative terms of cover are sourced with insurers to provide the most beneficial outcome for the prospective client
       
Element: Make submission to prospective client
  • Required written submission is provided to client in format required by the organisation
  • Options that specify benefits and advantages are identified for the prospective client
  • Features of the advice are explained to the client in a clear and unambiguous way
  • Relevant details, terms and conditions of the underlying products/services are explained to the client
  • Requirements to put the recommended program into effect are explained to the client
  • Client is provided with written supporting documentation and guided through the key aspects of the documentation
  • Distribution of relevant disclosure documents is established
       


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:

maintain and apply knowledge of products and specialist knowledge of general insurance products, practices, global markets and exposures

apply knowledge in practical situations to tailor specific advice to the client

comply with industry and of organisation obligations and objectives

interpretavailable information about the client's riskneeds and products

apply discretion and judgement in developing an appropriate solution.

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 organisational 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, assignment, 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

well-developed communication skills to:

negotiate with clients and others

determine and confirm information, using questioning and active listening techniques

gather information and negotiate to obtain agreed outcomes

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform calculations related to achieving required outcomes

collect and analyse data to identify client needs

use appropriate calculators or statistics to determine insurance cover requirements

identify product information and access appropriate databases and spreadsheets

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 and prepare submissions

research and analysis skills for accessing and interpreting relevant information and product research and analysis to formulate recommendations

organisational skills, including the ability to plan and sequence work

presentation skills for information to clients and insurers

needs analysis skills

data analysis and interpretation skills

Required knowledge

core insurance knowledge:

operation of life insurance markets: definition of a life insurance product, characteristics and participants of the Australian insurance market, the roles played by intermediaries

Types of insurance life insurance products, conditions, inclusions and exclusions, levels of coverage of risk transfer products, pricing, investment strategy for those products with an investment component

taxation: awareness of taxation issues in relation to the products

advisory functions:

the role of the broker/representative/adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

legal environment - disclosure and compliance:

the role of the broker/representative/adviser

relevant legal principles (e.g. Corporations Act, Financial Services Reform Act (FSRA), Trade Practices Act)

the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith)

full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser's recommendation

Insurance Brokers Code of Practice and organisational codes of conduct

internal and external (FOS) complaints resolution procedures

ASIC guidelines on adviser conduct and training

specialist life insurance knowledge:

types of life insurance products/policies

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating/risk selection

reporting

product development

underwriting

specialist knowledge on insurance broking products and services used by the life broker

legislative and organisational compliance requirements in relation to advice:

relevant legislation and ASIC regulatory guides affecting the provision of general and personal advice the role of different advisers within the organisation

brokerage policy and guidelines related to the provision of personal advice

details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant products

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.

Level of insurance broking advice may include:

extent of the client's enquiry, the complexity of the advice requested and the financial literacy of the client.

Disclosure documents and information may include:

financial services guide

product disclosure statement

statement of advice.

Short, medium and long term goals may include:

beliefs about performance and risk

business needs

expectations of access to the product

expectations of lifecycle and length of the product

expectations of product coverage

family income

insurer security.

Risk assessment processes may include:

amendments

broker slips

legal cases

pre-underwriting report

previous insurers

proposals

surveys.

Significant changes may involve:

complex technical determinations

high monetary impact

important client base.

Scaled and suitable:

advice has a specific definition in the ASIC guidelines on disclosure and conduct of advisers in its regulatory guides.

Restricted words may include:

impartial

independent

unbiased.

Terms of cover may include:

deductibles/excesses required

limit of liability/sub-limits

price

scope of cover

security of carrier.

Submission may include:

conceptual quotation

firm quotation

to prospective clients.

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
A range of communication and interpersonal skills are used to establish the knowledge level of client and clarify the level of insurance broking advice to be provided 
Broker authorisation to deal with the client's needs is established and referral to appropriate adviser for higher level/specialist advice made, if required 
Enquiries are responded to by explaining the range of life insurance products and broking services available and their relevant fee and charging methodology 
Role of the broker and the licensee/principal responsible for the adviser's conduct is advised to the client 
Regulations, codes and procedures set out in organisation compliance manuals for the personal advice process are complied with including delivery of appropriate disclosure documents and information about complaints handling processes 
A range of communication and interpersonal skills are used to encourage the consumer to express their short-, medium- and long-term goals relevant to the product 
Where relevant, a product risk profile of the client is identified, assessed and agreed 
Nature of submission required by prospective client is determined 
Skill requirements to prepare submission are identified 
The need for specialist advice or client industry information is sought if required to address issues that professional judgement indicates may require further consideration. 
Consultants with required skills are identified and retained as required 
Team is established with team leader identified as required 
Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details 
Risk assessment is completed in compliance with guidelines 
Comprehensive records are maintained of risk assessment and actions taken 
All information from the client risk assessment and profiling process is analysed 
Comprehensive records of risks assessed and actions taken are checked to ensure information is current and comprehensive 
Required insurance program and/or products are fully identified using an appropriate checklist 
Clients are consulted throughout the analysis for further clarification where necessary 
Follow-up questioning to ensure that the client understood earlier questions and that information received by them is relevant and complete is undertaken 
Appropriate insurance/risk management program based on risk assessment and client profile and needs is determined 
Proposed program is compared with appropriate checklist and other similar clients and significant changes identified 
Available options are identified and assessed using information from risk analysis 
Relevant product research is conducted 
Advice for presentation to the client is prepared in accordance with organisational policy 
Checks to ensure the advice has been scaled and suitable to the requirements of the advice situation are made 
Checks that restricted words are used appropriately in the delivery of advice are made 
Checks are made that the reasoning behind the advice and any conflicts of interest that affect the advice have been disclosed are made 
Where applicable, availability of a market with suitable terms for the client requirements is identified 
Where applicable, indicative terms of cover are sourced with insurers to provide the most beneficial outcome for the prospective client 
Required written submission is provided to client in format required by the organisation 
Options that specify benefits and advantages are identified for the prospective client 
Features of the advice are explained to the client in a clear and unambiguous way 
Relevant details, terms and conditions of the underlying products/services are explained to the client 
Requirements to put the recommended program into effect are explained to the client 
Client is provided with written supporting documentation and guided through the key aspects of the documentation 
Distribution of relevant disclosure documents is established 

Forms

Assessment Cover Sheet

FNSIBK504A - Provide personal advice in life insurance broking products and services (Tier 1)
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

FNSIBK504A - Provide personal advice in life insurance broking products and services (Tier 1)

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: