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 significant risk changes to insurance program

1.1. Significant risk changes are identified against existing level of client exposure

1.2. Objective risk assessment is undertaken

1.3. Existing business is reviewed in line with significant risk changes

2. Prepare advice to client

2.1. Advice is provided that is based on objective assessment of situation

3. Negotiate with insurers on behalf of client

3.1. Suitable markets for client requirements are identified

3.2. Terms and conditions are negotiated with insurer to protect client's business

4. Communicate options to client and obtain client instructions

4.1. Alternative risk management strategies are presented to provide client with viable options

4.2. Cost-benefit analysis of options is undertaken where appropriate

4.3. Client is provided with the opportunity to discuss and question alternatives

4.4. Clear and concise formal instructions are obtained

4.5. Client instructions are documented and confirmed to protect interests of client and broker

Required skills

well-developed communication skills to:

determine and confirm information, using questioning and active listening techniques

write clear and accurate reports

make effective presentations

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 computer applications (word processing, spreadsheet, database, specific purpose computer systems) to assist in achieving required outcomes

use version control software

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 and maintain currency of industry products and services knowledge

research and analysis skills for accessing and interpreting relevant information

interpersonal skills

organisational skills, including the ability to plan and sequence work

data analysis and interpretation skills

Required knowledge

industry compliance requirements

industry market position relative to product/line of business

IT and communications systems

marketing principles

organisation policy and procedures

relevant common law, legal systems and procedures

risk management strategies

the insurance market and policies

underwriting guidelines and authorities

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:

demonstrate a sound appreciation of the principles and practice of cost-benefit analysis, insurance benefits, credit stability assessment, history of risk, claims history and level of supplier service

synthesise and coordinate all these aspects of the industry to monitor and provide advice on new insurance arrangements

proactively anticipate customer requirements and recommend the appropriate products.

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.

Significant risk changes may involve:

complex technical determinations

high monetary impact

important client base.

Negotiations will usually involve:

developed interpersonal skills and analytical abilities.

Alternative risk management strategies may include:

risk transfer.

Unit sector

Insurance broking

This unit contains employability skills.