List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Determine risk acceptance criteria | 1.1 Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy 1.2 Use available data to validate risk acceptance criteria |
2. Seek information | 2.1 Identify and collate accurate, reliable and up-to-date information in format suitable for analysis |
3. Negotiate reinsurance for extraordinary risks | 3.1 Identify need for, and level of, reinsurance appropriate to risk 3.2 Determine terms of reinsurance from available sources of information and in accordance with organisational policy 3.3 Negotiate reinsurance appropriate to anticipated exposure |
4. Determine and advise terms and conditions of acceptance | 4.1 Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure 4.2 Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines |
Evidence of the ability to:
establish criteria and undertake risk assessment for extraordinary risks
negotiate reinsurance and establish and document appropriate terms and conditions.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
describe the types of extraordinary risks within the life insurance sector
define relevant medical terminology, and identify diseases and injuries that lead to extraordinary risks
describe the nature of liability arising out of extraordinary risks
list the relevant information required to assist with negotiating reinsurance
outline the relevant actuarial, financial and legislative requirements including the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and the Life Insurance Act
describe the methods used to mitigate risk through reinsurance
describe the key players in the reinsurance industry and their involvement in reinsurance.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the life insurance field of work and include access to:
office equipment, technology, software and consumables
organisational records, policy and procedures.
Assessors must satisfy NVR/AQTF assessor requirements.