Unit of competency details

Release 

Comments 

Release 2

Release 2 of this Unit first released with FNS10 Financial Services Training Package version 2.0.

Updated suffix of prerequisite unit to FNSIBK503B Provide personal advice in general insurance broking products and services.

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.

ELEMENT 

PERFORMANCE CRITERIA 

1. Identify opportunities and constraints for the provision of broking services

1.1. Business operations are reviewed to ensure compliance with relevant legislation 

1.2. Availability of suitable products/suppliers is identified market wide

1.3. Resource limitations  are identified

2. Establish client risk assessment methodology

2.1. Risk exposure review documentation  is developed to enable effective analysis of client risks 

2.2. Notices/instructions are developed to ensure full disclosures  are made in compliance with relevant legislation and underwriting requirements

2.3. Resource and expertise requirements are identified to ensure required additional or specialist  support is obtained

3. Establish client contact criteria

3.1. Measures  to determine levels of client contact  are determined

3.2. Responses to deal with contingent demand  requirements are determined

4. Determine procedures for documentation

4.1. Documented distribution procedures are established in compliance with relevant legislation and underwriter requirements

4.2. Appropriate types and levels of documentation  for client service are determined

Required skills 

• well-developed communication skills to:

• determine and confirm information, using questioning and active listening techniques
• 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
• research and analysis skills for accessing and interpreting relevant information
• organisational skills, including the ability to plan and sequence work
• high level management and interpersonal skills
• sales and marketing skills

Required knowledge 

• exposures
• industry compliance requirements
• industry market position relative to product/line of business
• insurance markets
• IT and communications systems
• legislative and regulatory body requirements
• marketing principles and practice
• organisation or industry policy wording
• relevant common law, legal systems and procedures

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the ability to:

• apply extensive industry knowledge of products, practices, global markets and exposuresto determine business directions and suitable options
• develop and coordinate a plan.

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 

Relevant legislation  includes:

• Agents and Brokers Act
• Carriers Act
• Compulsory Third Party Motor Vehicles Act
• Credit Act
• Insurance Act, as amended
• Insurance Contracts Act
• Local Government Act
• Marine Insurance Act
• Trade Practices Act
• workers compensation Acts.

Resource limitations  may be:

• equipment and facilities
• financial
• geographical
• technical expertise.

Risk exposure review documents  may include

• declarations
• disclosure information
• questionnaires
• risk checklists.

Types of client risks  may be all exposures applicable to relevant clients such as:

• casualty
• consequential loss
• employee benefits
• intangible
• liability
• property
• tangible.

Disclosure  requirements may relate to:

• any other material facts
• business activity
• convictions
• insurance history.

Specialists  may include:

• accountants
• consultants
• engineers
• insurance organisation representatives
• legal professionals
• risk managers
• surveyors
• valuers.

Measures  used to determine client contact levels include:

• financial returns
• location
• market niche
• size.

Contact  methods can include:

• correspondence
• direct mail
• facsimile
• newsletters
• personal contact
• telephone.

Contingent demands  may occur when:

• business development occurs
• claims are made
• risk changes.

Documentation  can include:

• billing
• claim statistics
• closings to underwriters
• declarations
• endorsements
• new business reports
• policies
• proposals
• remittance to underwriters
• renewal certificates
• renewal reports
• risk reviews
• service manuals.