Application
This unit describes the skills and knowledge required to assess a client’s insurance needs and accurately advise customers about financial products and services at the Australian Securities and Investments Commission (ASIC) Tier 2 level.
It applies to individuals whose roles as non-broker insurance advisers require proficient communication and well-developed interpersonal skills and substantial generic, insurance core and specialist general insurance product knowledge to provide advice on 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. Establish relationship with client | 1.1 Use range of communication and interpersonal skills relevant to knowledge level of client 1.2 Respond to enquiries by explaining range of general insurance products and services available and their relevant fees and charging methodology 1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct 1.4 Inform client about procedures for complaints handling |
2. Identify client objectives and risk situation | 2.1 Use range of communication and interpersonal skills to establish client objectives and goals 2.2 Ensure appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details |
3. Analyse client risk information | 3.1 Analyse all information from risk assessment process 3.2 Make sure that specialist advice is sought if required to address issues that professional judgement indicates may require further consideration 3.3 Ensure that clients are consulted throughout analysis for further clarification where necessary |
4. Identify appropriate risk solution | 4.1 Identify and assess available options using information from risk analysis 4.2 Conduct relevant product research 4.3 Prepare statement of advice for presentation to client 4.4 Confirm that client is referred to appropriate adviser for higher level or specialist advice if required |
5. Present appropriate solutions to client | 5.1 Ensure that features of statement of advice are explained to client in clear and unambiguous way 5.2 Disclose impact of key aspects of recommendations, including possible risks, in clear and concise manner to client |
6. Negotiate effectively | 6.1 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction 6.2 Obtain from client and confirm preferred insurance plan, policy and/or transaction |
7. Coordinate implementation of agreed solution | 7.1 Seek agreement from client about proposed insurance plan, policy and/or transaction, including all associated fees and costs 7.2 Ensure that timeframes for execution and processing are clearly explained to client |
8. Complete and maintain necessary documentation | 8.1 Confirm that proposal and other documents are completed and, where appropriate, are signed off by client 8.2 Ensure that signed agreement and copies of appropriate documentation are exchanged 8.3 Create and update client records |
9. Provide ongoing service where requested by client | 9.1 Ensure that type and form of ongoing service, including review of insurance plan, policy and/or transaction, is agreed with client 9.2 Clearly explain fees and costs for defined ongoing services and confirm client understands all details 9.3 Provide ongoing service as required |
Evidence of Performance
Evidence of the ability to:
work effectively with clients to analyse their objectives and risk situation
interpret available information about the client’s risk needs and products in preparing an appropriate solution
provide accurate advice and complete all required documentation to implement the solution, 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
identify 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
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
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 | 3.1, 4.1, 4.2 | Recognises and interprets textual information from relevant sources |
Writing | 1.1-1.4, 2.1, 3.3, 4.3, 5.1, 5.2, 6.2, 7.1, 7.2, 8.1-8.3, 9.1 | Uses clear, specific and industry related terminology to record and consolidate workplace documentation |
Oral Communication | 1.1-1.4, 2.1, 3.2, 3.3, 5.1, 5.2, 6.2, 7.1, 7.2, 9.1, 9.2 | Clearly articulates product and service information unambiguously, using language appropriate to the audience and environment Confirms client’s understanding through active listening and questioning |
Numeracy | 1.2 | Interprets financial product information and completes calculations to achieve required outcomes |
Navigate the world of work | 1.3, 1.4, 4.2, 5.2 | Understands and adheres to organisational requirements and protocols within own area of responsibility Develops and maintains product knowledge to provide accurate and relevant information in compliance with implicit and explicit organisational protocols |
Interact with others | 1.1, 2.1, 6.1, 6.2, 7.1, 7.2 | Selects and uses appropriate communication conventions and protocols to establish rapport with clients to determine their understanding, needs and preferences and provide the required information to negotiate agreement Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others |
Get the work done | 2.2, 3.2, 3.3, 4.1, 4.4, 8.1, 8.2, 9.3 | Takes responsibility for mostly 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