Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to advise retail and/or wholesale clients in non-standard general insurance broking products and services. This unit requires the application of risk assessment and analysis skills and product knowledge to enable the preparation of a tailored insurance program for a new broking client or remarketing to a current client. It may be applied in the context of marketing an existing insurance scheme offered by the brokerage or one-off business. In the case of scheme business, Element 7 below is not required to be completed. This unit is applicable to individuals working within insurance broking enterprises and in broking adviser roles subject to licensing regulation by the Australian Securities and Investments Commission (ASIC). It covers the functions undertaken by an insurance broker providing personal advice in Tier 1 retail general insurance. Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC. |
Application of the Unit
Application of the unit |
For those brokers seeking to meet ASIC training standards:
This unit applies to insurance broking roles and may be applied within organisations of various sizes and across a range of customer bases. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Establish relationship with client |
1.1. A range of communication and interpersonal skills are used to establish the knowledge level of client and clarify the level of insurance broking advice to be provided 1.2. Broker authorisation to deal with the client's needs is established and referral to appropriate adviser for higher level/specialist advice made, if required 1.3. Enquiries are responded to by explaining the range of general insurance products and broking services available and their relevant fee and charging methodology 1.4. Role of the broker and the licensee/principal responsible for the adviser's conduct is advised to the client |
2. Identify client objectives and risk situation |
2.1. Regulations, codes and procedures set out in organisation compliance manuals for the personal advice process are complied with including delivery of appropriate disclosure documents and information about complaints handling processes 2.2. A range of communication and interpersonal skills are used to establish client objectives and goals |
3. Determine submission resource requirements |
3.1. Nature of submission required by prospective client is determined 3.2. Skill requirements to prepare submission are identified 3.3. The need for specialist advice or client industry information is sought if required to address issues that professional judgement indicates may require further consideration. 3.4. Consultants with required skills are identified and retained as required 3.5. Team is established with team leader identified as required |
4. Apply risk assessment methodology |
4.1. Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details 4.2. Risk assessment is completed in compliance with guidelines 4.3. Comprehensive records are maintained of risk assessment and actions taken |
5. Analyse client risk information |
5.1. All information from the client risk assessment process is analysed 5.2. Comprehensive records of risks assessed and actions taken are checked to ensure information is current and comprehensive 5.3. Required insurance program and/or products are fully identified using an appropriate checklist 5.4. Clients are consulted throughout the analysis for further clarification where necessary 5.5. Follow up questioning to ensure that the client understood earlier questions and that information received by them is relevant and complete is undertaken |
6. Identify appropriate insurance program |
6.1. Appropriate insurance/risk management program based on risk assessment and client needs is determined 6.2. Proposed program is compared with appropriate checklist and other similar clients and significant changes identified 6.3. Available options are identified and assessed using information from risk analysis 6.4. Relevant product research is conducted 6.5. Advice for presentation to the client is prepared in accordance with organisational policy 6.6. Checks to ensure the advice has been scaled and suitable to the requirements of the advice situation are made 6.7. Checks that restricted words are used appropriately in the delivery of advice are made 6.8. Checks are made that the reasoning behind the advice and any conflicts of interest that affect the advice have been disclosed are made |
7. Identify market availability |
7.1. Where applicable, availability of a market with suitable terms for the client requirements is identified 7.2. Where applicable, indicative terms of cover are sourced with insurers to provide the most beneficial outcome for the prospective client |
8. Make submission to prospective client |
8.1. Required written submission is provided to client in format required by the organisation 8.2. Options that specify benefits and advantages are identified for the prospective client 8.3. Features of the advice are explained to the client in a clear and unambiguous way 8.4. Relevant details, terms and conditions of the underlying products/services are explained to the client 8.5. Requirements to put the recommended program into effect are explained to the client 8.6. Client is provided with written supporting documentation and guided through the key aspects of the documentation 8.7. Distribution of relevant disclosure documents is established |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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Level of insurance broking advice may include: |
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Disclosure documents and information may include: |
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Client objectives and goals may include: |
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Risk assessment process may include: |
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Significant changes may involve: |
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Scaled and suitable advice: |
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Restricted words may include: |
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Terms of cover may include: |
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Submission may include: |
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Unit Sector(s)
Unit sector |
Insurance broking |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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