This unit applies to insurance broking roles and may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Identify required risk changes to insurance program

1.1. Required risk changes are fully identified using appropriate checklist or questionnaire and application of industry knowledge

1.2. Alternative risk management strategies are determined to provide client with viable options

1.3. Current insurance program is reviewed to determine whether existing cover can be endorsed or whether new cover is required

1.4. Instructions from the client on required changes is sought without delay

2. Negotiate change with insurers

2.1. Availability of a market with suitable terms for the client requirements is established

2.2. Terms, conditions and pricing required for change are negotiated with suppliers to provide the most beneficial outcome for the client

3. Communicate options for insurance program changes to client

3.1. Outcomes of negotiations with insurers are advised to client to enable an informed decision to be made

3.2. Options that specify benefits and disadvantages are identified for the client

3.3. Fully justified recommendations are made

4. Obtain client instructions for insurance program amendments

4.1. Options for changes are communicated so that the client can make informed decisions on program changes

4.2. Client instructions that are clear and concise are obtained to enable precise action to be taken

4.3. Client instructions are recorded according to operating procedures to ensure information is current

4.4. Client instructions are confirmed to protect the interests of broker and client

Required skills

well-developed communication skills to:

negotiate with clients and others

determine and confirm information, using questioning and active listening techniques

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

use basic statistical/data analysis and interpretation

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

well-developed 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 and analysis of client history and trends

interpersonal skills

organisational skills, including the ability to plan and sequence work

Required knowledge

industry market position relative to product/line of business

industry organisation policy and procedures

IT and communications systems

organisation or industry policy wording

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:

review existing customer portfolio and insurance history and recommend strategies

grow the relationship with a client.

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 organisation 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.

Application of industry knowledge may include:

claims history

credit stability assessments

history of risk

level of supplier service.

Risk management strategies may include:

transfer of risk.

Changes may include:

amendments in legislation

claims

organisation acquisitions or disposals

management changes

new insurance product

new or cessation of activities.

Terms of insurance program may include:

deductibles/excesses required

price

scope of cover

security of carrier.

Client instructions may be:

verbal or written and may be recorded in:

client file or other appropriate system

computer system

day book.

Unit sector

Insurance broking

FNSIBK506A

Monitor broking clients

This unit contains employability skills.