Application
This unit describes the skills and knowledge required to identify and implement insurance program changes for an insurance broking client, including undertaking a review of the existing portfolio and insurance history. It is applicable to both general and life insurance brokers and can be applied to providing advice to wholesale and retail clients following a prior review of the client's personal and/or business needs.
It applies to individuals who apply well-developed interpersonal, analytical and communication skills within organisations of various sizes and across a range of customer bases.
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. Identify required risk changes to insurance program | 1.1 Establish all required changes using appropriate checklist or questionnaire 1.2 Determine alternative risk management strategies to provide client with viable options 1.3 Review current insurance program to determine whether existing cover can be endorsed or whether new cover/s are required 1.4 Seek instructions from client about required changes without delay |
2. Negotiate change with insurers | 2.1 Establish availability of market with suitable terms for client requirements 2.2 Negotiate all terms required for change with suppliers to provide most beneficial outcome for client |
3. Communicate options for changes to client | 3.1 Advise client about outcomes of negotiations with insurers to enable informed decision to be made 3.2 Identify options for client that specify benefits and disadvantages 3.3 Justify all recommendations |
4. Obtain client instructions for program amendments | 4.1 Communicate options for changes clearly so that client can make informed decisions on program changes 4.2 Obtain clear and concise client instructions to enable precise action to be taken 4.3 Record client instructions according to operating procedures to ensure information is current 4.4 Confirm all client instructions to protect interests of both broker and client 4.5 Complete relevant documentation |
5. Provide ongoing service where requested by client | 5.1 Agree with client type and form of ongoing service, including reporting on performance and review of insurance program 5.2 Explain any fees and costs for ongoing and specifically defined services, and confirm client’s understanding 5.3 Schedule and provide ongoing service as required |
Evidence of Performance
Evidence of the ability to:
review existing client portfolio and client insurance history to identify gaps in the portfolio and recommend strategies to cater to client needs
develop a communication strategy that demonstrates gathering and analysis of information, and development of options, and shows how a recommendation for a chosen line of action is justified.
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:
outline application of the principles and practice of cost–benefit analysis in recommending changes to client insurance programs
provide analysis of product offerings available in the market to cater for the varying needs of broking clients that covers evaluation of insurance benefits and supplier services
evaluate the organisation’s policy and procedures that cater to the improvement of service to broking clients
summarise the various risk management strategies available to service broking clients
explain the responsibility for compliance with legislative requirements in recommending changes to insurance programs.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance broking field of work and include access to:
common 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 | 1.1, 1.3, 4.3 | Organises, interprets and critiques material from a range of sources and identifies relevant and key information |
Writing | 1.1, 2.1, 2.2, 3.1, 3.3, 4.1-4.4, 5.2 | Develops material for a specific audience using clear and detailed language to convey explicit information, requirements and recommendations |
Oral Communication | 1.4, 2.1, 2.2, 3.1, 3.3, 4.1, 4.2, 4.4, 5.2 | Participates in verbal exchanges using tone and language suitable to the audience Employs listening and questioning techniques to confirm understanding |
Numeracy | 1.2, 2.2, 5.2 | Analyses and interprets basic statistical data and performs accurate mathematical calculations to achieve required outcomes |
Navigate the world of work | 1.1, 1.2, 2.1, 4.3 | Maintains knowledge of products, services and legislation relevant to own role to provide accurate and relevant information Takes full responsibility for ensuring that documentation and advice comply with legislative and organisational procedures |
Interact with others | 1.4, 2.2, 3.1-3.3, 4.1, 4.2, 4.4, 5.1 | Selects and uses appropriate conventions and protocols to liaise with the client and others in a range of work contexts Recognises and accommodates the particular needs, values, beliefs and cultural expectations of others Uses collaborative techniques to negotiate agreed outcomes |
Get the work done | 1.1-1.4, 3.2, 4.2, 4.3, 5.3 | Accepts responsibility for planning and sequencing complex tasks and workload to meet service requirements Systematically gathers and analyses all relevant information and evaluates options to make recommendations |
Sectors
Insurance broking