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

ELEMENT

PERFORMANCE CRITERIA

1. Obtain information on risk

1.1. Information is gathered in accordance with organisation guidelines on risk changes since prior acceptance, if required

1.2. Any claims on risk are identified

1.3. Information is gathered on client history if applicable

1.4. Surveys/reports are commissioned if applicable to risk

1.5. Exception reporting is utilised if applicable

1.6. Legislative and compliance requirements are adhered to in all cases

2. Review risk information

2.1. Information is reviewed to determine its relevance and reliability

2.2. Any claims on risk are checked and documented

2.3. Compliance with risk management conditions is checked

3. Assess information against established risk criteria

3.1. Risk acceptance criteria/net retentions are checked for any changes over past period

3.2. Risk information is compared against risk acceptance criteria and procedures to assess acceptability of risk

3.3. Liaison with other internal departments is conducted to assess impact on business if applicable

3.4. Risk assessment data is documented according to organisation policy and procedures

Required skills

communication skills to:

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

relate to customers

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

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

organisational skills, including the ability to plan and sequence work

Required knowledge

application of Financial Services Reform legislation

organisation or industry sector policy wording

organisation policy, procedures, underwriting guidelines and authorities

organisation products

industry market position relative to product/line of business

industry sector compliance requirements such as the General Insurance Code of Practice

Insurance Contracts Act, Insurance (Agents and Brokers) Act, Trade Practices Act, other statutory requirements

interim cover as it relates to expiry of contracts and cancellations (Insurance Contracts Act ss. 38, 58)

OHS requirements

reinsurance, treaty and facultative policies

relevant common law, legal systems and procedures

risk prevention methods and application

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:

understand and apply all relevant legal obligations and organisation procedures when identifying and evaluating risks for renewal business

maintain and apply sound understanding of relevant organisation products and services

follow relevant underwriting guidelines and procedures

identify and investigate risk as it relates to renewal business in accordance with underwriting and organisation guidelines

document risk assessment data in accordance with organisation guidelines.

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.

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.

Client history may include:

claims records

financial results

number and type of policies

time insured.

Reports may include:

pre-underwriting reports which are usually computer reports on policy premiums and claims

reports regarding reinsurance requirements and changes in the physical risk exposure.

Legislative and compliance requirements may include:

codes of practice

Corporations Act

Financial Services Reform Act (FSRA)

relevant Australian Securities and Investments Commission (ASIC) requirements.

Sources of information may include:

amendments

assessor reports

broker slips

claims

customer duties of disclosure and renewal

proposals

stock exchange

surveys

telephone contacts.

Risk acceptance criteria may include:

claims history

class of business

driving and/or accident history

locality

minimum security levels.

Unit sector

Insurance services

This unit contains employability skills.