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. Determine needs of client with complex risk portfolio

1.1. Risk assessment is completed in compliance with guidelines

1.2. Similar situations that identify precedent are analysed to assist in complex risk portfolio analysis

1.3. Comprehensive records are maintained of risk assessed and actions taken

2. Identify changes to insurance program

2.1. Changes are determined by appropriate review of portfolio requirements

2.2. Specialist advice is sought as required

2.3. Claims/losses history is obtained

2.4. Changes in risk context and external environment are taken into account

2.5. Client declarations/proposals are obtained as required by underwriters

2.6. Client preferred options are identified

3. Negotiate complex renewals with insurers

3.1. Selected insurers are identified and approached

3.2. Options and alternative portfolio structures are negotiated with insurers to obtain the most suitable program for client

3.3. Negotiated renewals with insurers incorporating the level of cover required by client

4. Obtain client instructions for renewal

4.1. Outcomes of negotiation with insurers are advised to client to enable an informed decision to be made

4.2. Advantages and disadvantages of available options are clearly explained to client

4.3. Detailed recommendations are made

4.4. Clear client instructions are obtained and documented

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 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

interpersonal skills

organisational skills, including the ability to plan and sequence work

Required knowledge

cost-benefit analysis, insurance benefits, credit stability assessment techniques

industry market position relative to product/line of business

industry or organisation compliance requirements

IT and communications systems

characteristics of supplier service

marketing principles and practice

organisation policy, procedures and authorities and policy wording

relevant legislation

relevant client industry structure and trends

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:

conduct client interviews, gather information and analyse options for presentation to the client

deal effectively with clients and negotiate with insurers.

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.

Risk assessment may involve:

amended policy schedules

existing policy schedules

using checklists.

Complex risk portfolio may involve:

complex technical risks

high monetary impact

valuable client base.

Specialists are usually:

technical experts in relevant fields.

Negotiated options with insurers include:

deductibles/excesses required

price

scope of cover

security of carrier

type of policy product.

Unit sector

Insurance broking

This unit contains employability skills.