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

FNSIBK514 Mapping and Delivery Guide
Manage a complex risk portfolio for a broking client

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSIBK514 - Manage a complex risk portfolio for a broking client
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to manage clients with a complex insurance portfolio by identifying and assessing risks and negotiating insurance changes and/or renewals. It also involves identifying additional exposures and advising on changes to the insurance program. It applies to individuals who have well-developed interpersonal, analytical and communication skills who generally work with commercial or corporate clients to synthesise industry information and monitor the client’s need for new products or changes to the product needs of clients.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.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance broking field of work and include access to:

common office equipment, technology, software and consumables

organisational records

organisational policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.
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: Identify significant risk changes impacting on client portfolio
  • Monitor client requests for program changes to identify significant variations
  • Monitor and analyse external environment against client program to identify major changes to level of risk exposure
  • Undertake objective risk assessment in compliance with guidelines to identify changes to existing level of client exposure
  • Seek specialist advice as required
       
Element: Analyse similar situations to identify precedents that will assist in analysis of complex risk portfolio
  • Maintain comprehensive records of risk assessed and actions taken
       
Element: Advise client on changes to insurance program
  • Provide advice based on objective assessment of situation that takes into account changes in risk context and external environment
  • Present alternative risk management strategies to provide client with viable options for risk treatment
  • Undertake a cost–benefit analysis of options where appropriate
  • Obtain client declarations as required by underwriter/s
  • Identify, record and verify client’s preferred options
       
Element: Negotiate complex changes and/or renewals with insurers
  • Identify suitable market for client requirements and approach selected insurers
  • Obtain client instructions for negotiated outcomes with insurers
  • Negotiate options and alternative portfolio structures with insurers to obtain most suitable program for client
  • Obtain negotiated outcomes that provide level of cover required by client
       
Element: Obtain client instructions for renewal
  • Advise client of outcomes of negotiation with insurers and provide client with opportunity to discuss and question alternatives
  • Explain benefits and disadvantages of available options clearly to client
  • Make fully justified recommendations
  • Clarify and document client instructions
  • Forward renewal notices to client at least fourteen days prior to policy expiry, according to organisational requirements
       


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. Identify significant risk changes impacting on client portfolio

1.1 Monitor client requests for program changes to identify significant variations

1.2 Monitor and analyse external environment against client program to identify major changes to level of risk exposure

1.3 Undertake objective risk assessment in compliance with guidelines to identify changes to existing level of client exposure

1.4 Seek specialist advice as required

Analyse similar situations to identify precedents that will assist in analysis of complex risk portfolio

1.6 Maintain comprehensive records of risk assessed and actions taken

2. Advise client on changes to insurance program

2.1 Provide advice based on objective assessment of situation that takes into account changes in risk context and external environment

2.2 Present alternative risk management strategies to provide client with viable options for risk treatment

2.3 Undertake a cost–benefit analysis of options where appropriate

2.4 Obtain client declarations as required by underwriter/s

2.5 Identify, record and verify client’s preferred options

3. Negotiate complex changes and/or renewals with insurers

3.1 Identify suitable market for client requirements and approach selected insurers

3.2 Obtain client instructions for negotiated outcomes with insurers

3.3 Negotiate options and alternative portfolio structures with insurers to obtain most suitable program for client

3.4 Obtain negotiated outcomes that provide level of cover required by client

4. Obtain client instructions for renewal

4.1 Advise client of outcomes of negotiation with insurers and provide client with opportunity to discuss and question alternatives

4.2 Explain benefits and disadvantages of available options clearly to client

4.3 Make fully justified recommendations

4.4 Clarify and document client instructions

4.5 Forward renewal notices to client at least fourteen days prior to policy expiry, according to organisational requirements

Evidence of the ability to:

synthesise and coordinate knowledge of the industry to monitor the need for new products or changes to product needs of clients

undertake client interviews, gather information and analyse options, based on risk assessment methodologies, for presentation to the client

undertake an assessment of a complex risk portfolio and identify gaps in losses and claims to be addressed

conduct cost–benefit analysis, review of insurance benefits, credit stability assessments, review of claims history and level of supplier service

negotiate effectively with insurers to obtain appropriate and optimal outcomes for the client

obtain and document client instructions for renewal.

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:

outline methods of analysis of the client’s industry structure and trends

explain the application of relevant legislation and compliance requirements on client management procedures

explain application of company policy, procedures and authorities in developing management plans for clients with complex portfolios and risks

illustrate cost–benefit analysis in the management of complex client portfolios or those with significant risk changes

explain methods for analysing policy wordings

explain the key marketing principles and practices that are applied to the management of complex client portfolios

provide an example of the application of risk assessment and risk management strategies in developing risk management plans for clients with complex risks.

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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify significant risk changes impacting on client portfolio

1.1 Monitor client requests for program changes to identify significant variations

1.2 Monitor and analyse external environment against client program to identify major changes to level of risk exposure

1.3 Undertake objective risk assessment in compliance with guidelines to identify changes to existing level of client exposure

1.4 Seek specialist advice as required

Analyse similar situations to identify precedents that will assist in analysis of complex risk portfolio

1.6 Maintain comprehensive records of risk assessed and actions taken

2. Advise client on changes to insurance program

2.1 Provide advice based on objective assessment of situation that takes into account changes in risk context and external environment

2.2 Present alternative risk management strategies to provide client with viable options for risk treatment

2.3 Undertake a cost–benefit analysis of options where appropriate

2.4 Obtain client declarations as required by underwriter/s

2.5 Identify, record and verify client’s preferred options

3. Negotiate complex changes and/or renewals with insurers

3.1 Identify suitable market for client requirements and approach selected insurers

3.2 Obtain client instructions for negotiated outcomes with insurers

3.3 Negotiate options and alternative portfolio structures with insurers to obtain most suitable program for client

3.4 Obtain negotiated outcomes that provide level of cover required by client

4. Obtain client instructions for renewal

4.1 Advise client of outcomes of negotiation with insurers and provide client with opportunity to discuss and question alternatives

4.2 Explain benefits and disadvantages of available options clearly to client

4.3 Make fully justified recommendations

4.4 Clarify and document client instructions

4.5 Forward renewal notices to client at least fourteen days prior to policy expiry, according to organisational 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
Monitor client requests for program changes to identify significant variations 
Monitor and analyse external environment against client program to identify major changes to level of risk exposure 
Undertake objective risk assessment in compliance with guidelines to identify changes to existing level of client exposure 
Seek specialist advice as required 
Maintain comprehensive records of risk assessed and actions taken 
Provide advice based on objective assessment of situation that takes into account changes in risk context and external environment 
Present alternative risk management strategies to provide client with viable options for risk treatment 
Undertake a cost–benefit analysis of options where appropriate 
Obtain client declarations as required by underwriter/s 
Identify, record and verify client’s preferred options 
Identify suitable market for client requirements and approach selected insurers 
Obtain client instructions for negotiated outcomes with insurers 
Negotiate options and alternative portfolio structures with insurers to obtain most suitable program for client 
Obtain negotiated outcomes that provide level of cover required by client 
Advise client of outcomes of negotiation with insurers and provide client with opportunity to discuss and question alternatives 
Explain benefits and disadvantages of available options clearly to client 
Make fully justified recommendations 
Clarify and document client instructions 
Forward renewal notices to client at least fourteen days prior to policy expiry, according to organisational requirements 

Forms

Assessment Cover Sheet

FNSIBK514 - Manage a complex risk portfolio for a broking client
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:

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Date:

Assessment Record Sheet

FNSIBK514 - Manage a complex risk portfolio for a broking client

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: