Application
This unit describes the skills and knowledge required to assess a client’s insurance prerequisites and accurately advise clients about financial products and services at the Australian Services and Investment Commission (ASIC) Tier 2 level.
It applies to individuals whose roles as non-broker insurance advisers require proficient communication and well-developed interpersonal skills to provide general advice in Tier 2 (standard retail general insurance) products to 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.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Deal with initial client enquiry for general insurance | 1.1 Attend to client enquiries in timely and courteous manner 1.2 Demonstrate active listening skills when dealing with client enquiries and provide help and assistance to ensure full and accurate completion of initial documentation where required 1.3 Communicate clearly and unambiguously with clients to determine and clarify product of interest to them 1.4 Analyse range of products of interest to clients to determine their categorisation as areas of general advice in line with legislation and organisational policy 1.5 Inform clients that general advice will be provided to them in relation to products of interest and that only personal information for underwriting and calculating cost of product will be sought 1.6 Refer clients to suitable specialist personnel where required advice is deemed to fall outside category of general advice |
2. Prepare general advice to client | 2.1 Provide correct disclosure documentation in accordance with legislation and organisational policy 2.2 Ensure that general advice warning is given to client in line with legislative and organisational policy 2.3 Consider special communication needs of clients or client when delivering general advice warning |
3. Provide general advice | 3.1 Ensure that product advice is given to client in clear and unambiguous way, avoiding jargon, in language appropriate to receiver and using organisational tools 3.2 Demonstrate appropriate product and industry knowledge when providing advice to client 3.3 Explain and discuss product advice with client in language that avoids giving impression adviser has considered client’s personal circumstances in providing advice 3.4 Ensure that client is asked to consider appropriateness of advice for own circumstances 3.5 Advise client to read product disclosure statement before making decision |
Evidence of Performance
Evidence of the ability to:
respond to client enquiries and prepare relevant general advice
provide accurate general insurance advice, complying with organisational procedures and industry regulations.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must satisfy knowledge requirements relevant to the products and activities in which advice is given. They must:
explain the legal environment including disclosure and compliance covering:
role of the broker, representative and/or adviser
relevant legal principles relating to the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act
relationship between ethics and regulatory requirements including good faith and utmost good faith
full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation
general insurance industry code of practice and organisational codes of conduct
complaints resolution procedures (internal and external)
ASIC guidelines on adviser conduct and training
summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries
describe insurance products including:
definition of an insurance product
conditions, exclusions and level of coverage of risk transfer products
types of insurance products
pricing of risk products
discuss taxation issues relating to insurance products
explain advisory functions including:
role of the representative, broker or adviser
participants in the insurance advisory services market
range of services provided
profile and financial information of the client
appropriateness of a risk assessment
identify legislative and organisational compliance requirements in relation to advice:
relevant legislation affecting the provision of general and personal advice including ASIC Regulatory Guide 175 on conduct and disclosure
role of different advisers within the organisation
organisational policy and guidelines related to the provision of general advice
details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant products
summarise the specific product knowledge for the general insurance products in which advice is given including:
types of general insurance products and policies
standard cover and deviations
policy wordings
taxes and charges
insurance claims
premium rating and risk selection
reporting
product development
underwriting
explain terms and conditions of retail general insurance products used by the adviser.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:
office equipment, technology, software and consumables
organisational records
organisational policy and procedures.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance
Skill | Performance Criteria | Description |
Reading | 1.4, 2.1 | Recognises and interprets textual information from relevant sources |
Writing | 1.2, 1.3, 2.2, 2.3, 3.1, 3.5 | Uses clear, specific and industry related terminology to complete and update workplace documentation |
Oral Communication | 1.2, 1.3, 1.5, 2.2, 2.3, 3.1, 3.3-3.5 | Clearly articulates product and service information unambiguously, using language and non-verbal signals appropriate to the audience and environment Confirms the client’s understanding through active listening and questioning |
Numeracy | 1.4, 3.1-3.3 | Interprets financial product information and completes calculations to achieve required outcomes |
Navigate the world of work | 1.4, 1.6, 2.1, 2.2, 3.2, 3.5 | Takes responsibility for adherence to legal, regulatory and organisational requirements that relate to own work role Ensures industry and product knowledge is current and is used in compliance with implicit and explicit organisational protocols |
Interact with others | 1.2, 2.3, 3.3 | Considers communication strategies to achieve effective connection with a diverse range of clients encountered in the work context Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others |
Get the work done | 1.1, 1.2, 1.4, 1.6, 2.1, 3.1 | Takes responsibility for routine tasks and decisions relating to client advice and support that comply with legal and organisational requirements, and recognises when client requires specialist assistance Uses the main features and functions of digital tools to complete work tasks |
Sectors
ASIC units