Application
This unit describes the skills and knowledge required to determine and prepare a submission for new insurance broking business. This unit has application to both life and general insurance brokers, and is applicable to submissions prepared for wholesale and retail clients. It covers the provision of general and personal advice in the context of preparing a submission to retail clients.
It applies to individuals who are skilful communicators and use analytical skills and specialist product knowledge to work effectively with clients.
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. Establish relationship with client | 1.1 Establish knowledge level of client using effective communication skills 1.2 Explain range of general insurance products and broking services available, and fee and charging methodology 1.3 Advise client about role of broker and principal responsible for adviser’s conduct, and complaint handling processes available to them 1.4 Identify client’s objectives, risk needs and financial situation |
2. Determine nature of submission and resource requirements | 2.1 Determine nature of submission required by prospective client 2.2 Assess skills required to prepare submission 2.3 Identify and retain consultants with required skills as needed 2.4 Identify and establish team and team leader as required |
3. Analyse client risk profile to develop product risk profile | 3.1 Complete risk assessment for client in compliance with guidelines 3.2 Develop risk profile of client using organisational tools 3.3 Prepare product risk profile from risk analysis 3.4 Maintain comprehensive records of risk assessment and actions taken |
4. Identify appropriate insurance program | 4.1 Determine appropriate insurance or risk management program based on risk assessment and client objectives, risk needs and financial situation 4.2 Compare proposed program with appropriate checklist and other similar clients, and identify significant changes 4.3 Confirm program meets needs with client |
5. Identify market availability | 5.1 Identify availability of market with suitable terms for client requirements 5.2 Negotiate required terms with insurers to provide most beneficial outcome for prospective client |
6. Make submission to prospective client | 6.1 Obtain letter of appointment that identifies exact nature of appointment as appropriate 6.2 Provide written submission to client in format required by organisation 6.3 Identify options that specify benefits and advantages for prospective client 6.4 Justify proposed recommendations fully and support with relevant information 6.5 Discuss and clarify concerns or issues with client regarding submission proposal, and obtain confirmation of client’s understanding 6.6 Complete appropriate documentation |
Evidence of Performance
Evidence of the of the ability to:
maintain and apply knowledge of insurance products, practices, global markets and exposures to tailor specific advice to clients
undertake risk management data collection and analysis to ensure clients are provided with the appropriate choice of products suitable to their requirements
comply with organisational requirements to prepare and deliver client conceptual and quotation submissions.
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:
research and analyse information relating to the insurance industry and economic and taxation factors impacting on insurance markets or products that is used to set the context for a business submission
explain the evaluation undertaken of a range of insurance products and broking services
explain organisational policy, procedures and standards in the preparation of business submissions
provide an example of the application of the principles of insurance buyer behaviour and marketing to the preparation and presentation of business submission to new and renewing clients
explain the impact of industry compliance requirements and regulatory guidelines in marketing broking services within the context of a business submission
illustrate the application of risk analysis procedures on the development of recommendations.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance broking field of work and include access to:
common office equipment, technology, software and consumables
organisational records
organisational policy and procedures.
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 | 2.1, 4.2, 5.1 | Analyses documentation from a variety of sources and consolidates information to determine requirements Evaluates information and products from a variety of sources to ensure appropriateness to client needs |
Writing | 1.2, 1.3, 3.2, 4.2, 5.2, 6.2-6.4, 6.6 | Accurately records information and prepares correspondence and documentation using clear language in accordance with organisational formats and protocols |
Oral Communication | 1.1-1.4, 5.2 | Conveys complex information in a manner appropriate for the audience Uses listening and questioning techniques to confirm understanding Uses negotiation techniques to obtain terms and conditions for client insurances |
Numeracy | 4.2 | Performs numerical calculations to identify client needs and insurance cover requirements |
Navigate the world of work | 3.1, 6.2 | Recognises and follows relevant legislative and regulatory requirements, and organisational policy and procedures Understands and meets expectations associated with own role Maintains knowledge of products, services and legislation relevant to own role |
Interact with others | 2.4, 5.2, 6.5 | Selects and uses appropriate conventions and protocols to liaise with others in a range of work contexts Recognises and accommodates the particular needs, values, beliefs and cultural expectations of others Implements strategies to establish a sense of connection and build rapport with clients Uses collaborative techniques to negotiate agreed outcomes |
Get the work done | 2.1-2.4, 3.1-3.2, 4.1, 4.2, 5.1-5.2, 6.1-6.5 | Accepts responsibility for planning and sequencing complex tasks and workload to meet organisational and client requirements Systematically gathers and analyses all relevant information and evaluates options to make decisions about appropriate services or products Uses digital technologies to access, enter and store information required to complete work tasks |
Sectors
Insurance broking