This unit applies to job roles involving specialist knowledge and functions in a range of insurance sectors and may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Prepare reinsurance tender

1.1. Previous tender arrangements and documents, where they exist, are reviewed

1.2. Information relating to treaty reinsurance tender is prepared and checked

1.3. Completeness of the information is checked

1.4. Coverage of a claim, or series of claims, under a specific client, policy, or treaty is confirmed

1.5. Tendering conditions are prepared in line with organisation procedures, guidelines and authorities, context and treaty and facultative obligations

1.6. Criteria for supplier selection is prepared and confirmed

1.7. All tender information is accurately recorded

1.8. Where required, tendering information is passed on to appropriate staff

2. Select reinsurance supplier

2.1. Relevant reinsurers notified of tender conditions and details under relevant reinsurance tendering arrangements

2.2. Tender response is requested from reinsurer in line with organisation procedures, guidelines and authorities within accepted timeframes and guidelines

2.3. Reinsurance supplier tenders are reviewed and evaluated against set selection criteria

2.4. All tender information is accurately recorded

3. Manage transactions for treaty

3.1. Recovery of the whole claim is calculated, including reinstatements for policy terms and conditions, and what treaty it is to be recovered from

3.2. Transactions are managed

3.3. All information is checked and accurately recorded

4. Negotiate terms and conditions of agreement

4.1. Policy terms and conditions are negotiated with selected reinsurers

4.2. All information is accurately documented and recorded on the system

4.3. Where required, reinsurer information is passed on to appropriate staff

Required skills

highly-developed communication skills to:

determine and confirm information, using questioning and active listening as required

relate effectively to customers

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

well-developed 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

learning skills to maintain knowledge of changes to compliance legislation and requirements

problem solving skills to identify any issues that have the potential to impact on work outcomes and to develop options to resolve these issues when they arise

self-management skills for complying with ethical, legal and procedural requirements research and analysis skills for accessing and interpreting relevant information

organisational skills, including the ability to plan and sequence work

Required knowledge

different types of treaties (e.g. stop loss)

GPS 23 - 7 prudential standard for Reinsurance Arrangements and relevant guidance notes

industry sector compliance requirements such as the General Insurance Code of Practice

organisation and industry sector policy wording

organisation policy, procedures, underwriting guidelines and authorities:

best underwriting guides (BUG)

loss control guides

organisation IT and communications systems

principles and methods of filing reinsurance terminology and concepts such as:

any one risk

any one event

reinstatement premium

relevant legislation, regulatory guidelines and industry sector compliance requirements, such as:

Insurance Contracts Act

Privacy Act

Trade Practices

Corporations Act

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.

Overview of assessment

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

Evidence of the ability to:

compile a tender document, including collection of appropriate data, and selection of appropriate methods of protection

fully comply with organisation operating procedures, legislative requirements and industry codes of practice, where applicable

prepare or verify a contract

negotiate a contract

comply with terms and conditions of organisation reinsurance arrangement.

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 organisation 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

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.

Types of treaty reinsurance may include:

catastrophe

excess of loss

quota share

stop loss.

Organisation procedures may include:

authority levels

reinsurance tender preparation guidelines.

Context may include:

accidental damage

additional benefits

burglary/theft

business interruption

business special risks

commercial

commercial motor

construction risks

crop

defined events

directors and officers

domestic

electronic equipment

employee fraud

engineering plant

environment and pollution

fire and perils

general and products liability

glass

Industrial Special Risks (ISR)

livestock

machinery breakdown

money

multi-risk

other personal items

package contracts

personal accident and illness

professional indemnity

public liability

sprinkler leakage

transit

travel.

Criteria for supplier selection may include:

expertise in product

financial security.

Unit sector

Insurance services

This unit contains employability skills.