FNSIBK522
Negotiate complex claims settlement for insurance broking clients


Application

This unit describes the skills and knowledge required to negotiate terms and conditions of complex claims settlements for insurance broking clients. It involves researching and organising information, identifying points of difference, clarifying crucial issues in the claim, and presenting a case in regard to an insurance claim settlement on behalf of clients.

The unit applies to those who use well-developed interpersonal, analytical and communication skills in insurance broking 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. Users are advised to check with the relevant state and territory regulatory authorities to confirm those 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. Establish content of complex claim

1.1 Review terms and conditions of insurance policy with client

1.2 Advise client on potential claim recovery

1.3 Identify non-insured items and potential issues

2. Negotiate matters relating to complex claim

2.1 Identify type of claim and establish applicable type of negotiation based on variation to standard claims settlement

2.2 Prepare grounds for negotiation according to legislative and organisational requirements

2.3 Negotiate terms and conditions of settlement with insurer, representing client interests

2.4 Obtain and review negotiated agreement with insurer

3. Finalise complex claim settlement

3.1 Prepare and document details of insurer’s settlement offer with recommendations for client review and acceptance

3.2 Obtain client’s response to settlement offer according to organisational procedures

3.3 Update business records according to organisational 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:

negotiate complex claims settlements for at least two different insurance broking clients.


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 and industry compliance requirements that impact client rights and obligations when negotiating complex claims

organisational policies and procedures relating to negotiating complex claims settlement for insurance broking clients, including for managing the claims process on behalf of clients and:

obtaining client responses to settlement offers

using insurance broking systems and procedures

features of insurance contract terms and conditions

roles and responsibilities of broker in negotiating complex claims

key aspects of underwriter’s claims dispute resolution process

techniques to interpret and analyse client’s needs, including key trends of client’s business environment

processes for preparing grounds for negotiation and for negotiating complex insurance claims

communication strategies to advise clients throughout negotiation process

insurance fundamentals and methods to interpret, comprehend and apply policy wording.


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

This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.

SKILL

DESCRIPTION

Numeracy

Interprets data and performs mathematical calculations to achieve required outcomes

Oral communication

Uses active listening and questioning techniques to confirm understanding

Participates in verbal negotiations using tone and language suitable to audience and purpose

Reading

Organises, interprets and critiques material from a range of sources and identifies key information

Writing

Develops material for a specific audience using clear, detailed language to convey explicit information, requirements and recommendations

Planning and organising

Accepts responsibility for planning and sequencing complex tasks and workload to meet organisational policies and procedures

Systematically gathers and analyses information and evaluates options to make decisions and recommendations regarding settlement terms

Self-management

Takes responsibility for ensuring that processes and documentation meet organisational policies and procedures

Teamwork

Selects and uses required conventions and protocols when communicating with insurer and others to seek and provide information

Technology

Uses digital technologies to access, enter and store information


Sectors

Insurance broking