Application
This unit describes the skills and knowledge required to analyse a client’s general insurance needs for current Australian Securities and Investments Commission (ASIC) regulation (Financial Services Reform Act) at Tier 1 (Diploma) level in the insurance specialist and generic knowledge areas.
It applies to individuals who have specialist product knowledge (especially relating to personal sickness and accident insurance) and strong interpersonal skills and are expert communicators. In this role, excellent customer service skills relating to the provision of advice to clients is essential.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Deal with initial client enquiry for general insurance | 1.1 Ensure client enquiries are attended to in timely and courteous manner 1.2 Demonstrate active listening skills when dealing with client enquiries and provide help and assistance to ensure full and accurate completion of initial documentation where required 1.3 Communicate clearly and unambiguously with client to determine and clarify product of interest to client 1.4 Analyse range of products of interest to client to determine categorisation as areas of general advice in line with legislation and organisational policy 1.5 Ensure clients are informed that general advice will be provided to them in relation to products of interest, and that only personal information for underwriting and calculating cost of product will be sought 1.6 Ensure that client is referred to appropriate specialist personnel where required advice is deemed to fall outside category of general advice |
2. Prepare general advice to client | 2.1 Provide correct disclosure documentation in accordance with legislation and organisational policy 2.2 Provide general advice warning to client in line with legislative and organisational policy 2.3 Consider special communication needs of client when delivering general advice warning |
3. Provide general advice | 3.1 Provide product advice to client in clear and unambiguous way, avoiding jargon, in language appropriate to receiver and using organisational tools 3.2 Demonstrate appropriate product and industry knowledge when providing advice to client 3.3 Explain and discuss product advice with client using language that avoids giving impression adviser has considered client’s personal circumstances in providing advice 3.4 Ask client to consider appropriateness of advice in light of own circumstances 3.5 Advise client to read product disclosure statement before making decision |
Evidence of Performance
Evidence of the ability to:
respond to client enquiries and prepare general advice in general insurance
provide accurate general insurance advice, complying with organisational procedures and industry regulations.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must satisfy generic, core and specialist knowledge requirements relevant to the products and activities in which advice is given.
Generic knowledge
analyse and provide an overview of the economic environment including:
characteristics and impact of economic and business cycles
interest rates and exchange rates
inflation
government monetary and fiscal policy
analyse and provide a detailed explanation of the operation of financial markets including:
roles played by intermediaries and issuers
structure and interrelationships within the financial markets
interrelationship between industry sectors
outline financial products including:
concept of a financial product – general definition, and specific inclusions and exclusions
types of financial investment products
types of financial risk products.
Core insurance knowledge
explain the operation of insurance markets including:
definition of insurance product
characteristics and participants of the Australian insurance market
roles played by intermediaries
types of insurance products including risk insurance products, investment life insurance products and general insurance products
explain the following aspects of insurance products:
conditions, exclusions and levels of coverage of risk transfer products
pricing
explain taxation issues in relation to general insurance products and markets
describe advisory functions including:
role of insurance adviser, broker or agent
participants in the insurance advisory services market
range of services provided
profile and financial information of the client
appropriateness of a risk assessment
discuss the legal environment including disclosure and compliance covering:
the role of the representative or adviser
relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Insurance Contracts Act, Life Insurance Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act
relationship between ethics and regulatory requirements including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser's recommendation
relevant industry standards and codes of conduct
regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements
complaints resolution procedures (external and internal).
Specialist knowledge
provide a summary of general insurance matters including:
types of general insurance products and policies
standard cover and deviations
policy wordings
taxes and charges
insurance claims
premium rating and risk selection
reporting
product development
underwriting
terms and conditions of retail general insurance products used by the adviser
discuss relevant legislative and organisational compliance requirements including:
legislation affecting the provision of general and personal advice including ASIC Regulatory Guide 175 on conduct and disclosure
role of different advisers within the organisation
organisational policy and guidelines related to the provision of general advice
details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant products.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:
office equipment, technology, software and consumables
organisational records.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.4, 2.1, 2.2 | Recognises and interprets textual information from relevant sources |
Writing | 1.3, 1.5, 2.2, 2.3, 3.1, 3.3-3.5 | Uses clear, specific and industry related terminology to record and consolidate workplace documentation |
Oral Communication | 1.2, 1.3, 1.5, 1.6, 2.2, 2.3, 3.1, 3.2-3.5 | Clearly articulates requirements using industry specific language appropriate to the audience Uses active listening and questioning to confirm understanding |
Numeracy | 1.4 | Interprets financial product information and completes calculations to achieve required outcomes |
Navigate the world of work | 1.4, 1.5, 2.1, 2.2, 3.2 | Takes responsibility for providing advisory services that comply with legal requirements and organisational products, policy and protocols |
Interact with others | 2.3, 3.3 | Establishes and uses appropriate conventions and protocols when communicating with clients about service provision Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others |
Get the work done | 1.1, 1.2, 1.4, 1.6, 2.1, 2.2, 3.1, 3.2, 3.5 | Takes responsibility for sequence and priority of mainly routine tasks for effective outcomes Maintains product knowledge required to provide informed, compliant advice in own work role and recognises when client requires specialist advice from others Uses the main features and functions of digital tools to complete work tasks and provide information |
Sectors
ASIC units