Application
This unit describes the skills and knowledge required to assess clients’ insurance needs and accurately advise them about retail general insurance products and services, excluding personal accident and illness at the Australian Services and Investment Commission (ASIC) Tier 2 level.
The unit applies to insurance advisers with well-developed communication and interpersonal skills, who apply product knowledge when providing general advice in relation to Tier 2 (retail general insurance) products to clients.
At the time of publication, no licensing requirements apply to this unit. However, given potential future changes in the licensing environment, users must check with the relevant licensing body to confirm whether this unit is required to complete a licence.
Elements and Performance Criteria
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Respond to initial client enquiry for general insurance | 1.1 Establish and respond to client enquiry according to organisational protocols and within required timeframes 1.2 Provide client with assistance and confirm full and accurate completion of initial documentation, as required 1.3 Determine and clarify products of interest through interaction with clients 1.4 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 1.5 Gather and record information relating to the risk to be insured according to organisational policies and procedures 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 Analyse range of products of interest to clients and options available to determine their categorisation as areas of general advice in line with legislation and organisational policies 2.2 Provide disclosure documentation according to legislation and organisational policies 2.3 Confirm general advice warning and other disclosures are given to client in line with legislative and organisational policies and any special communication needs of client |
3. Communicate and discuss general advice with client | 3.1 Demonstrate relevant product and industry knowledge when providing advice to client 3.2 Explain and discuss product advice with client in language that avoids giving impression adviser has considered client’s personal circumstances in providing advice 3.3 Confirm that client is asked to consider appropriateness of advice for own circumstances 3.4 Advise client to read product disclosure statement before making decision |
Evidence of Performance
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
respond to client enquiries and prepare relevant Tier 2 general advice with respect to different retail insurance products and for at least two different clients.
Evidence of Knowledge
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
legislative and organisational compliance requirements in relation to advice, including:
legislation affecting the provision of general and personal advice, including relevant regulatory guidelines on conduct and disclosure
roles and responsibilities of different advisers within the organisation
organisational policies and guidelines relating to provision of general advice
legal environment, including disclosure and compliance covering:
role of broker, representative and/or adviser and applicable fiduciary duty obligations and range of services provided
legal principles relating to the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act, and Australian Services and Investment Commission (ASIC) Act
relationship between ethics and regulatory requirements, including good faith, faith and utmost good faith
details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on relevant products
full disclosure of remuneration and fees and any other conflicts of interest that may influence adviser’s recommendation
relevant insurance industry codes of practice and organisational codes of conduct
internal and external complaints resolution procedures
ASIC guidelines on adviser conduct and training
insurance products and services delivered by the organisation, including:
purpose of products and services
conditions, exclusions and level of coverage of risk transfer products
insurance product options available
taxation issues relating to insurance products
required content of disclosure statements, including content that:
complies with requirements of current regulations and organisational policies and procedures
includes key aspects of recommendations, including possible risks.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
organisational equipment, technology, software and consumables
organisational records
organisational policies and procedures.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Numeracy | Interprets financial product information and completes calculations to achieve required outcomes |
Oral communication | Articulates product and service information unambiguously, using language and non-verbal signals suitable to audience and environment Uses active listening and questioning techniques when responding to client enquiry and providing assistance |
Reading | Interprets textual information from relevant sources |
Writing | Uses clear, specific and industry-related terminology to complete and update workplace documentation |
Initiative and enterprise | Takes responsibility for adherence to legal, regulatory and organisational requirements that relate to own work role Ensures industry and product knowledge is current and used in compliance with organisational protocols |
Self-management | Takes responsibility for routine tasks and decisions relating to client advice and support that comply with legal and organisational requirements |
Teamwork | Uses communication strategies to achieve effective connection with a diverse range of clients |
Technology | Uses digital technologies and main features and functions of digital tools to access, enter and store information |
Sectors
ASIC units