This unit applies to underwriting 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. Determine hazards and exposures

1.1. Comprehensive physical examination of risk is undertaken including hazard indicators

1.2. Client and relevant third parties are interviewed to identify potential risk components

2. Analyse level of hazards and exposures

2.1. Risk type is assessed against known exposure factors

2.2. Risk type is assessed for compliance with relevant legislation and organisation policy

2.3. Acceptability of risk is determined within organisation underwriting requirements

2.4. Maximum probable loss is estimated, where applicable

3. Report and recommend on condition of risk exposure

3.1. Condition and improvements to risk are fully documented according to organisation policy and procedures

3.2. Loss control measures as applicable are specified as a condition of risk acceptance and renewal

4. Monitor and review loss control measures

4.1. Loss control measures are followed up and recorded according to organisation policy and procedures

4.2. Risk improvement is monitored against loss control measures

4.3. Follow-up risk surveys are conducted as 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

Australia/NZ Standard AS/NZS 4360: 2004 Risk Management

how to calculate Maximum Probable Loss (MPL)

industry market position relative to product/line of business

organisation policy, procedures, underwriting guidelines and authorities

organisation products

reinsurance

relative industry hazards

relevant legislative and compliance requirements, especially Financial Services Reform Act (FSRA) and Corporations Act

risk prevention methods and application

statutory hazard, health and safety legislation

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 legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop a suitable policy

apply all relevant legal obligations and organisation procedures in order to identify and thoroughly assess risks

maintain a sound understanding of relevant organisation products and services and relevant underwriting guidelines and procedures

conduct comprehensive surveys of potential risk exposure and develop recommendations to control or minimise risk of loss

monitor loss control measures in accordance with underwriter's guidelines and organisation procedures.

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.

Comprehensive physical examination may include reference to:

organisation standard risk procedures, as defined by individual insurers.

Hazard indicators may include:

adjoining occupations

compliance with statutory requirements (storage and licensing)

construction standard of premises

degree of quality control

incident reporting systems

level of maintenance/housekeeping

management and staff attitude and commitment to safety and security of property and persons

protection levels for fire and burglary

proximity to other business premises/remote locations

response times to services, such as fire/security/police

risk management programs

security program.

Relevant legislation may include:

building codes

FSRA

safety and hazardous goods

workers compensation and other industrial legislation.

Organisation policy may include:

diary keeping procedures.

Unit sector

Insurance services

This unit contains employability skills.