This unit is specifically designed to assist advisers dealing with retail clients but it may have wider application to wholesale clients.

The unit may be applied within organisations of various sizes and across a range of customer bases

ELEMENT

PERFORMANCE CRITERIA

1. Establish relationship with client

1.1. A range of communication and interpersonal skills are used to the knowledge level of client

1.2. Enquiries are responded to by explaining the range of general insurance products and services available and their relevant fees and charging methodology

1.3. Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct

1.4. Client is informed of the procedures for complaints handling

2. Identify client objectives and risk situation

2.1. A range of communication and interpersonal skills are used to establish client objectives and goals

2.2. Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details

3. Analyse client risk information

3.1. All information from the risk assessment process is analysed

3.2. The need for specialist advice is sought if required to address issues that professional judgement indicates may require further consideration.

3.3. Clients are consulted throughout the analysis for further clarification where necessary

4. Identify appropriate risk solution

4.1. Available options are identified and assessed using information from risk analysis

4.2. Relevant product research is conducted

4.3. A statement of advice for presentation to the client is prepared

4.4. The client is referred to an appropriate adviser for higher level or specialist advice if required

5. Present appropriate solutions to client

5.1. Features of the statement of advice are explained to the client in a clear and unambiguous way

5.2. Impact of key aspects of the recommendations, including possible risks, are disclosed in a clear and concise manner to the client

6. Negotiate effectively

6.1. Concerns and/or issues the client has regarding the proposed insurance plan/policy/transaction are discussed and clarified

6.2. Confirmation is sought from client regarding their preferred insurance plan/policy/transaction

7. Coordinate implementation of the agreed solution

7.1. Agreement regarding the proposed insurance plan/policy/transaction is sought from the client including fees and costs

7.2. Timeframes for execution and processing are clearly explained to the client

8. Complete and maintain necessary documentation

8.1. Proposal and other documents are completed and, where appropriate, signed off by the client

8.2. Copies of appropriate documentation and the signed agreement are exchanged

8.3. Client records are created or updated

9. Provide ongoing service where requested by client

9.1. Type and form of ongoing service including review of insurance plan/policy/transaction is agreed with the client

9.2. Fees and costs for defined ongoing services are clearly explained and confirmation of understanding gained from the client

9.3. Ongoing service is provided as required

Required skills

communication skills to:

determine and confirm information, using questioning and active listening as required

gather information and explain products in language that avoids unnecessary industry specific jargon

literacy and presentation to prepare and present information to clients and insurers

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

obtain product information

use IT calculators to determine insurance premiums

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

literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information

research and analysis skills for accessing and interpreting relevant information

interpersonal skills

organisational skills, including the ability to plan and sequence work

data collection and analysis skills to identify client needs

product research and analysis skills to formulate recommendations

time management and record keeping skills

Required knowledge

core insurance knowledge:

characteristics and participants of the Australian insurance market

insurance products: types of insurance general insurance and risk insuranceproducts, conditions, inclusions and exclusions, levels of coverage of risk transfer products, pricing

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 (eg good faith, utmost good faith

full disclosure of remuneration/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

specialist general insurance knowledge:

types of general insurance products/policies

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating/risk selection

reporting

product development

underwriting

terms andconditions of retail general insuranceproducts used by the adviser

taxation issues in relation to the products and markets in which they operate

advisory functions, including:

the role of the representative or adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

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:

apply core and specialist knowledge about the general insurance market in practical situations

demonstrate application of knowledge to a variety of known customer service and technical situations

interpret available information about the client's risk needs and products and 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

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.

Adviser may include:

all natural persons who provide financial product advice to retail clients

any representative of a licensee

employee or owner.

Clients objectives and goals may include:

business needs

expectations of product coverage.

Risk assessment process might include:

checklists

surveys.

Information may include:

details of the customer's needs and objectives for coverage, insurer security

disclosures.

Concerns and/or issues might include:

beliefs about security and coverage.

Unit sector

Insurance life/general ASIC

This unit contains employability skills.