This unit applies to job roles in generalist or specialist areas of insurance and may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Determine risk acceptance criteria

1.1. Risk acceptance criteria are established to suit type and context of risk within relevant organisation policy

1.2. Availability of data on acceptance criteria is determined to ensure criteria are valid

2. Seek information

2.1. Accurate, reliable and up-to-date information is identified and collated in a form suitable for analysis

3. Negotiate reinsurance for extraordinary risks

3.1. Need for, and level of, reinsurance for the risk is identified

3.2. Terms of reinsurance are determined from available sources and in accordance with organisation policy

3.3. Reinsurance is negotiated which provides required protection for anticipated exposure

4. Determine and advise terms and conditions of acceptance

4.1. Terms of acceptance are established that meet market conditions and are within organisation accepted levels of exposure

4.2. Terms and conditions are clearly documented and meet the requirements of relevant underwriting guidelines and are determined within delegated authorities

Required skills

highly developed communication skills to:

negotiate with clients

determine and confirm information, using questioning and active listening as required

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 for policy interpretation and application and 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 maintaining currency of industry products and services knowledge

organisational skills, including the ability to plan and sequence work

Required knowledge

nature of industry sector

nature of liability

relevant actuarial, financial and legislative requirements including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA)

relevant medical techniques, diseases, injuries and terminology

types of risk and probability of likely occurrence

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:

apply highly developed analytical skills

maintain and apply a thorough understanding of all aspects of risk assessment in the current industry sector market.

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 criteria refers to:

criteria against which a risk may be measured for acceptability.

Risk factors vary according to:

potential impact on the organisation

value and type of produce.

Sources of information may include:

actuaries

brokers

clients

financiers

intermediaries

lawyers/solicitors

medical practitioners

product developers

reinsurers

underwriters.

Unit sector

Insurance life

This unit contains employability skills.