This unit applies to job roles, including underwriting 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. Identify and obtain risk information

1.1. All sources of risk information are identified, gathered and recorded and deficiencies rectified

1.2. Information is reviewed to determine its relevance and reliability and the integrity of its source

1.3. Data is formatted for easy access

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

2. Assess information against established risk acceptance criteria

2.1. All relevant risk information is assessed to determine if it is comprehensive and pertinent to the nature of the risk

2.2. Surveys/reports are reviewed and commissioned if applicable to risk

2.3. Data on risk exposure from survey report is interpreted

2.4. Risk information is compared against risk acceptance criteria and organisation capacity to assess and accept risk according to terms and conditions of risk assessment

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

2.6. Proposed amendments to organisation wording are reviewed and compared to acceptance criteria

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

3. Issue a quotation

3.1. Quote based on all the risk assessment data is prepared and communicated if required

Required skills

well-developed communication skills to:

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

relate effectively 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

well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information

self-management skills for complying with ethical, legal and procedural requirements 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 Act (FSRA)

industry market position relative to product/line of business

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

OHS requirements

organisation or industry sector policy wording

organisation policy, procedures, underwriting guidelines and authorities (e.g. best underwriting and loss control guides)

organisation products

reinsurance, treaty and facultative

relative industry hazards

relevant common law, legal systems and procedures including:

Insurance Contracts Act

Insurance (Agents and Brokers) Act

Trade Practices Act

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

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:

interpret and comply with all relevant legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop a suitable policy

maintain knowledge of relevant organisation products and services

apply relevant underwriting guidelines and procedures

identify and investigate risk as it relates to new 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 organisation 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.

Sources of risk information may include:

amendments

broker slips

claims

general knowledge

insurance reference services

legal cases

pre-underwriting report

previous insurers

proposals

publications (industry associations and trade journals)

stock exchange

surveys

telephone contacts

any other source the insurer deems relevant.

Legislative and compliance requirements may include:

codes of practice

Corporations Act

FSRA

relevant Australian Securities and Investments Commission (ASIC) requirements.

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.

Risk acceptance criteria may include:

claims history

class of business

driving and/or accident history

locality

minimum security levels.

Terms of conditions of risk assessment may include:

additional exclusions

adequate reinsurance cover

claims history

endorsements

excesses/deductibles

extensions

internal and industry statistics

pricing

quality of risk

risk factors

risk improvement requirements

sub-limits

variations in policy wording

warranties.

Unit sector

Insurance services

This unit contains employability skills.