Application
This unit describes the skills and knowledge required to implement a new or renewed insurance program based on a client’s current objectives and risk profile.
The unit applies to those working in insurance broking who assess and review information for retail clients.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.
Elements and Performance Criteria
1. Determine insurance program requirements | 1.1 Establish client’s knowledge level and type of advice required 1.2 Identify client’s objectives according to organisational policies and procedures 1.3 Respond to enquiries for advice on new or renewed insurance program and explain program components |
2. Evaluate client objectives and risk situation | 2.1 Gather client information according to organisational procedures to determine client risk profile 2.2 Complete risk assessment in compliance with brokerage guidelines and applicable legislative and regulatory requirements 2.3 Confirm effective dates for insurance changes with client 2.4 Maintain comprehensive records of risks assessed and actions taken according to regulatory requirements and organisational procedures 2.5 Check and review records regularly to ensure information is current |
3. Analyse required changes to client’s insurance program | 3.1 Research and recommend appropriate products based on product comparison and cost-benefit analysis 3.2 Identify and record required changes to program using information gathered 3.3 Compare new and additional risks with current insurance program so that discrepancies are clear 3.4 Consult client throughout analysis and seek advice about required changes within required timeframe 3.5 Determine need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required and according to organisational policies and procedures 3.6 Obtain client declarations as required by underwriter |
4. Negotiate any program changes with insurers | 4.1 Obtain terms to meet client requirements 4.2 Clarify terms required for renewal and change of client’s insurance with insurers |
5. Communicate options to client and obtain instructions | 5.1 Advise clients about outcomes of negotiation with insurers to enable informed decisions 5.2 Clarify options for client that specify client benefits and disadvantages 5.3 Present justified recommendations clearly to clients, responding to questions as required 5.4 Obtain client instructions to enable precise action to be taken 5.5 Forward renewal notices to client according to organisational timeframe requirements |
6. Agree to arrangements for providing ongoing service | 6.1 Explain fees and costs of ongoing service and confirm client understanding 6.2 Agree to type and form of ongoing service to be provided 6.3 Implement procedures for agreed ongoing service according to organisational policies and procedures |
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:
implement at least one new and one renewed program, each for a different insurance broking client.
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 requirements, regulatory and brokerage guidelines relating to implementing insurance programs for insurance broking clients
organisational policies, procedures and authorities relating to implementing new and renewed insurance programs for broking clients, including for:
identifying client needs and objectives
gathering client information
completing risk assessments
maintaining client risk and program records
referring clients to specialist advisers
available insurance products, product types, and broking services and programs, and:
associated fees
charging methodologies
organisational and industry policy wording in developing recommendations for broking clients
key features of client risk assessment, including risk profile
roles and responsibilities of adviser or principal responsible for adviser’s conduct
methods for comparing researched products and completing associated cost-benefit analyses
regulatory requirements for providing advice to retail clients.
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 | Performs calculations to determine cost-benefit analyses, insurance requirements and fees according to organisational methodologies |
Oral communication | Uses language suitable to audience and purpose to convey information and requirements Uses active listening and questioning techniques to confirm understanding |
Reading | Gathers, interprets and analyses information from a range of sources and identifies key information, including organisational and industry policy wording |
Writing | Records and completes organisational documentation and correspondence using clear language and correct spelling, grammar and terminology Writes, edits and proofreads own documents to ensure clarity of meaning, and accuracy and consistency of information |
Planning and organising | Takes responsibility for planning, sequencing and prioritising tasks and own workload to meet organisational requirements Applies systematic and analytical decision-making processes to make informed recommendations in relation to risk assessment |
Self-Management | Takes personal responsibility for following policies, procedures and legislative requirements Selects and uses appropriate techniques when communicating with clients and insurers in a range of contexts |
Teamwork | Uses collaboration techniques to negotiate agreed outcomes |
Technology | Uses digital technologies to access, enter and store information |
Sectors
Insurance broking