financial services training package insurance broking fns15 · explain the operation of insurance...

RPL Information Booklet

Financial Services Training Package Insurance Broking

FNS15


Gold Seal I.P. Pty Ltd, May 2016 v1.0 Page 1

1. ABOUT RPL

1.1 What is RPL?

Recognition of prior learning (RPL) is the formal acknowledgement of a person’s

competencies, regardless of how, when or where the learning occurred. It is an integral

component of the vocational education and training system in Australia and is also referred

to by a number of other terms, such as recognition of current competence (RCC).

Under the Australian Quality Training Framework (AQTF) competencies may be attained

through:

Formal or informal training and education

Work experience

General life experience

Any combination of the above

1.2 How do I use the RPL Information Booklet?

Gold Seal offer RPL for the following nationally recognised qualifications and accreditations:

Diploma of Insurance Broking

ASIC Tier 1 in Insurance Broking Accreditation

Gold Seal do not over a RPL process for the following accreditations:

ASIC Tier 2 in General Insurance Accreditation

General Advice for Underwriting Agencies

These are entry level courses and it is not expected that students would have had the

opportunity to develop existing skills, knowledge and experience in order to be given

credit.

Units of Competency

Each Gold Seal module is based on a unit or units of competency that have been defined by

industry, are nationally recognised and form the basis of training for the insurance broking

sector of the finance industry.

The competencies describe the skills and knowledge that is expected to be applied for a

person to operate effectively in the workplace. The emphasis is on outcomes: what you are

able to do and also with the ability to do this in a range of contexts.



The following pages list the units of competency for each module of learning. Some

modules cover more than one unit of competency. You may apply for an RPL on individual

units of competency rather than the whole module.

Types of Evidence

We have included some suggestions regarding the types of evidence that may be applicable

for each module. You will find this information at the end of each module description.

You are not required to provide a unique piece of evidence for each module or unit of

competency. If you are preparing an RPL submission for more than one module, or unit of

competency, the evidence you collect, if relevant, may assist in demonstrating competence

for all or some of the requirements in other modules / units of competency.

If you are having difficulty selecting the types of evidence you should collect, feel free to

give one of the Gold Seal staff a call for some guidance.

1.2.1 How do I Apply for RPL?

To apply for RPL:

1. Complete the Recognition of Prior Learning Application Form

2. Use the RPL Information Booklet as a guide to select the evidence required to support your application

3. Collect your evidence

4. Submit your Application Form with your evidence to Gold Seal

Upon receipt of your RPL Application a Gold Seal Assessor will judge whether the evidence

produced demonstrates current knowledge, skills and attitudes. Generally to be current,

evidence provided should not be more than 5 years old, although in some cases, more

recent evidence may be required.

If the Gold Seal Assessor has any questions or requires further evidence to support your

application, they will contact you.



2. DIPLOMA OF INSURANCE BROKING (INCORPORATING TIER 1 IN INSURANCE BROKING)

The following table indicates the modules and core and elective units of competency that

are completed in Gold Seal’s Diploma of Insurance Broking.

GOLD SEAL MODULE UNIT OF COMPETENCY Core Elective

ASIC TIER 1 ACCREDITATION IN INSURANCE BROKING

FNSASICY503 Provide advice in insurance broking

FNSIBK406 Deliver professional insurance broking services

FNSIBK508 Implement changes to broking client’s insurance program

FNSIBK513 Prepare submission for new business

CLIENT RISK ASSESSMENT

FNSIBK514 Manage complex risk portfolio for a broking client

FNSIBK515 Monitor broking client requirements and establish loss control programs

FNSRSK501 Undertake risk identification

FNSRSK502 Assess risks

CLAIMS MANAGEMENT IN INSURANCE BROKING

FNSIBK512

Negotiate complex claims settlement for insurance broking client

REVIEW CLIENT SERVICE PERFORMANCE

FNSIBK507 Review service performance



FNSASICY503 – Provide advice in insurance broking ASIC TIER 1 Accreditation in Insurance Broking Module

This unit describes the skills and knowledge required to analyse a client’s insurance needs

and provide advice ethically and professionally, in compliance with industry regulations and

codes of practice. It addresses the training requirements of current Australian Securities and

Investments Commission (ASIC) and Australian financial services (AFS) licensing at Tier 1

level.

It applies to individuals who use well-developed interpersonal skills, and excellent

communication and self-management skills to perform a specialist advisory role in insurance

broking.

Performance Evidence

Evidence of the ability to:

Interpret and comply with industry regulations and codes of practice

Analyse client’s needs, financial situation and risk profile, and prepare appropriate

strategies or solutions relating to insurance broking

Provide accurate and ethical advice on insurance broking products and services

Implement the plan, policy or transaction once agreed by the client and complete

documentation accurately

Knowledge Evidence

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:

o characteristics and impact of economic and business cycles

o interest rates and exchange rates

o inflation

o government monetary and fiscal policy



Analyse and provide a detailed explanation of the operation of financial markets

including:

o roles played by intermediaries and issuers

o structure and interrelationships within the financial markets

o interrelationship between industry sectors

Outline financial products, including:

o concept of a financial product – general definition, and specific inclusions and

exclusions

o types of financial investment products

o types of financial risk products

Core insurance knowledge

Explain the operation of insurance markets including:

o definition of insurance product

o characteristics and participants of the Australian insurance market

o roles played by intermediaries

Describe insurance products including risk insurance products, investment life

insurance products and general insurance products

Explain the following aspects of insurance products:

o conditions, exclusions and levels of coverage of risk transfer products

o pricing

Outline taxation issues in relation to insurance products and markets

Describe advisory functions, including:

o role of insurance adviser, broker or agent

o participants in the insurance advisory services market

o range of services provided

o profile and financial information of the client

o appropriateness of a risk assessment

Discuss the legal environment including disclosure and compliance covering:

o 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

Outline the following aspects of insurance broking:

o types and classes of insurance products and policies

o standard cover and deviations

o product development

o policy wordings

o underwriting

o insurance claims

o premium rating and risk assessment

o types of broking services

Types of Evidence

Evidence of 5 years’ experience out of the last 8 in insurance broking

Copies of client files showing evidence of the end to end completion of a broking

transaction/s, including a needs analysis, product research, product recommendations,

file notes, and negotiations with insurers and clients

Copies of new business submissions for clients

Examples of presentations made to clients regarding options including any slides /

handouts and speaker notes

Copies of policies and procedures relating to the provision of advice to clients and

authority levels

Copies of policies and documents relating to marketing to clients

Copies of client files showing changes in insurance requirements over time (minimum

6 month period), risk assessment conducted during changes, documentation prepared,

renewal notices, any marketing / product information issued, updated needs analysis,

file notes, negotiations with clients and/or insurers and implementation of renewals

and changed/new policies

Copies of policies, procedures and documentation relating to client service

agreements, renewals and the issue of relevant industry and/or marketing material as

required

Examples of reports prepared by the applicant



FNSIBK406 – Deliver professional insurance broking services ASIC TIER 1 Accreditation in Insurance Broking Module This unit describes the skills and knowledge required to deliver all aspects of the insurance

broking service to clients. It includes dealing with the initial enquiry for insurance broking

services, identifying and implementing an appropriate insurance program, dealing with a

client’s insurance claim and providing follow up services.

It applies to individuals who use high level communication and clerical skills to provide

broking assistance and a range of client services, including risk advice that requires specialist

knowledge. Individuals may work in small or large brokerage organisations dealing with

retail and/or commercial clients.



Provide responses to a range of enquiries to satisfy client needs and achieve

organisational outcomes

Use organisational tools to collect, analyse and record information to provide broking

services, including risk assessments and insurance claims

Access and complete documentation

Prepare timely, well-presented and accurate information to insurers and clients.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

Outline the application of organisational policy, procedures and authorities for broking

and dealing with client enquiries, particularly those leading to the provision of

personal advice

Describe the application of service processes and standards that the adviser takes

responsibility for in relation to information collection and risk assessment, placing

client insurances, providing claims assistance and undertaking post-sales client contact

Describe the application of insurance and risk plans for typical retail and/or

commercial client situations and risk profiles

Summarise the key requirements of relevant legislation and industry codes of practice

requirements that the adviser takes responsibility for in the provision of insurance

broking services

Describe the analysis of a range of insurance product or policy types, and their terms

and conditions and cost and fee structures, for use in providing advice to retail clients.



Types of Evidence


Copies of client files showing evidence of the end to end completion of a broking

transaction/s, including a needs analysis, product research, product recommendations,

file notes, and negotiations with insurers and clients




Copies of policies and procedures relating to the provision of advice to clients and

authority levels




required




FNSIBK508 – Implement changes to broking client’s

insurance program ASIC TIER 1 Accreditation in Insurance Broking Module This unit describes the skills and knowledge required to identify and implement insurance

program changes for an insurance broking client, including undertaking a review of the

existing portfolio and insurance history. It can be applied to providing advice to wholesale

and retail clients following a prior review of the client's personal and/or business needs.

It applies to individuals who apply well-developed interpersonal, analytical and

communication skills within organisations of various sizes and across a range of customer

bases.



Review existing client portfolio and client insurance history to identify gaps in the

portfolio and recommend strategies to cater to client needs

Develop a communication strategy that demonstrates gathering and analysis of

information, and development of options, and shows how a recommendation for a

chosen line of action is justified.

Knowledge Evidence


Outline application of the principles and practice of cost–benefit analysis in

recommending changes to client insurance programs

Provide analysis of product offerings available in the market to cater for the varying

needs of broking clients that covers evaluation of insurance benefits and supplier

services

Evaluate the organisation’s policy and procedures that cater to the improvement of

service to broking clients

Summarise the various risk management strategies available to service broking clients

Explain the responsibility for compliance with legislative requirements in

recommending changes to insurance programs.

Types of Evidence











required




FNSIBK513 – Prepare a submission for new business ASIC TIER 1 Accreditation in Insurance Broking Module This unit describes the skills and knowledge required to determine and prepare a

submission for new insurance broking business. This unit 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.



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.

Knowledge Evidence


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.



Types of Evidence









FNSIBK514 – Manage a complex risk portfolio for a broking

client Client Risk Assessment Module This unit describes the skills and knowledge required to manage clients with a complex

insurance portfolio by identifying and assessing risks and negotiating insurance changes

and/or renewals. It also involves identifying additional exposures and advising on changes to

the insurance program.

It applies to individuals who have well-developed interpersonal, analytical and

communication skills who generally work with commercial or corporate clients to synthesise

industry information and monitor the client’s need for new products or changes to the

product needs of clients.



Synthesise and coordinate knowledge of the industry to monitor the need for new

products or changes to product needs of clients

Undertake client interviews, gather information and analyse options, based on risk

assessment methodologies, for presentation to the client

Undertake an assessment of a complex risk portfolio and identify gaps in losses and

claims to be addressed

Conduct cost–benefit analysis, review of insurance benefits, credit stability

assessments, review of claims history and level of supplier service

Negotiate effectively with insurers to obtain appropriate and optimal outcomes for the

client

Obtain and document client instructions for renewal.

Knowledge Evidence


Outline methods of analysis of the client’s industry structure and trends

Explain the application of relevant legislation and compliance requirements on client

management procedures

Explain application of company policy, procedures and authorities in developing

management plans for clients with complex portfolios and risks



Illustrate cost–benefit analysis in the management of complex client portfolios or

those with significant risk changes

Explain methods for analysing policy wordings

Explain the key marketing principles and practices that are applied to the management

of complex client portfolios

Provide an example of the application of risk assessment and risk management

strategies in developing risk management plans for clients with complex risks.

Types of Evidence








FNSIBK515 – Monitor broking client requirements and

establish loss control programs Client Risk Assessment Module This unit describes the skills and knowledge required to manage clients with a complex

insurance portfolio by identifying and assessing risks and negotiating insurance changes

and/or renewals. It also involves identifying additional exposures and advising on changes to

the insurance program.

It applies to individuals who have well-developed interpersonal, analytical and

communication skills who generally work with commercial or corporate clients to synthesise

industry information and monitor the client’s need for new products or changes to the

product needs of clients.



Assess and record current and new risks to the portfolio by applying a systematic,

methodological approach to monitoring situations in the context of product market

developments and industry trends

Comply with broking and communication protocols and practices

Analyse loss experience of client and make recommendations for appropriate action to

cover identified losses

Analyse data relating to loss incidents to determine loss trends and make

recommendations to improve loss controls

Develop a service level agreement (SLA) suitable for broking clients requiring loss

control programs.

Knowledge Evidence


Explain the analysis and evaluation process used to identify potential changes to client

portfolios

Provide a detailed analysis of loss control techniques applied to managing client risks

Outline the application of insurance survey requirements to monitor the requirements

of clients with potential risk changes, including those relating to workplace safety

Explain approach to analysing policy wordings in relation to client losses

Evaluate the impact of industry or company compliance requirements on dealing with

client losses



Outline company policy, procedures and authorities that are applied in loss analysis

and reporting.

Types of Evidence








FNSRSK501 – Undertake risk identification Client Risk Assessment Module This unit describes the skills and knowledge required to identify the financial risks faced by

an organisation, evaluate existing risk controls and recommend improvements appropriate

to mitigate the impact of those risks.

It applies to individuals who use specialised knowledge, systematic approaches and

analytical skills to monitor and manage information relevant to organisational activity.



Effectively liaise and communicate with stakeholders regarding risk identification

Identify financial risk clusters, and analyse and prioritise the risks

Document risks and controls, and make recommendations for risk control

improvements.

Knowledge Evidence


Identify and explain the role of internal and external stakeholders relevant to risk

Identify and explain the key features and purpose of the Australian standards for risk

management

Compare and contrast methods of identifying financial and legislative risks

Explain the concept of risk clusters

Explain the key principles and practices of risk management

Explain the key principles and importance of risk controls

Explain risk mitigation strategies.

Types of Evidence








FNSRSK502 – Assess risks Client Risk Assessment Module This unit describes the skills and knowledge required to examine the likelihood of financial

risks and their consequences, and assess the organisation’s exposure to those risks.

It applies to individuals who provide specialised knowledge, and who use systematic

approaches to problem solving and make recommendations within organisational processes

and procedures.



Effectively liaise and communicate with stakeholders

Develop risk evaluation criteria and conduct effective analysis of financial and

legislative risk situations

Prepare a risk map prioritising risk, based on risk analysis

Develop recommendations to mitigate risk.

Knowledge Evidence


Identify and explain the key features and purpose of Australian standards for risk

management

Analyse and discuss risk management principles and practices, and key terminology

Outline the key organisational policy, procedures and operational guidelines relating to

risk assessment

Research risk exposure levels in the financial services industry

Identify residual risk levels and check risk appetite levels for the industry

Evaluate risk consequences for the organisation

Identify and explain the role of internal and external stakeholders relevant to risk.

Types of Evidence








FNSIBK512 – Negotiate complex claims settlement for

insurance broking client Claims Management Module This unit describes the skills and knowledge required to research, organise, identify points of

difference, clarify the crucial issues and present a case in negotiating terms and conditions

of claims settlements for insurance broking clients.

It applies to individuals who use well-developed interpersonal, analytical and

communication skills within organisations of various sizes and across a range of customer

bases.



Review and analyse the insurance cover to determine insured and non-insured items

Prepare advice and recommendations for clients based on analysis of the insurance

cover and claims made

Negotiate with the insurer to obtain the optimum outcome for the client

Document the insurer’s settlement offer, including recommendations for client review

and acceptance, and obtain client response.

Knowledge Evidence


Provide a detailed analysis of the roles and responsibility of the broker in the process

of negotiating a complex claim

Outline a plan to manage the claim’s process on behalf of the client through

application of the insurance broking systems and procedures, and a thorough

understanding of the underwriter’s claims process

Explain how the key features of insurance contract terms and conditions are evaluated

to enable the claim’s negotiation to be planned effectively

Explain the application of communication strategies to advise clients throughout the

negotiation process, including explaining the roles of underwriters and loss adjusters

in the claims process

Explain the application of relevant legislation and industry compliance requirements

that impact on the client’s rights and obligations.



Types of Evidence

CV / Resume and job description showing recent (not more than 5 years previous)

involvement in the management of claims

Copies of complex claims files including all documentation, file notes, reports and

correspondence and negotiations with both clients and insurer during the claim

Copies of policies and procedures and any other documentation relating to claims

management



FNSIBK507 – Review service performance Client Risk Assessment Module This unit describes the skills and knowledge required to collect, analyse and review the

client service provided by an insurance broking organisation to identify suitable actions. It

encompasses investigations, analysis and evaluation about broker performance in

implementing the client’s service plan and developing strategies to improve it.

It applies to individuals with well-developed interpersonal, research and analytical skills that

are used to develop strategies to improve services.



Apply high level analysis, decision making and auditing to ensure service performance

is in line with desired outcomes

Conduct timely performance reviews and spot checks against service performance

indicators

Analyse service results, and report and recommend appropriate actions

Implement procedures and determine effectiveness.

Knowledge Evidence


Provide examples of approaches used for continuous improvement in client service

outline the key performance indicators and key result areas for client servicing

Explain the application of marketing principles and practice in developing strategies for

client servicing

Outline forecasting related to the client servicing aspects of the organisational budget

Outline the impact of underwriting guidelines and authorities on organisational policy

and procedures related to client servicing

Explain responsibility taken for compliance requirements by brokers undertaking client

servicing.



Types of Evidence

Copies of policy and procedures relating to managing service performance for the

organisation

Copies of policies and procedures relating to continuous improvement

C/V / Resume and detailed job description showing applicants involvements in the

establishment of service performance targets, collection of data to measure service

performance, audit of results and the monitoring of service performance against

targets and standards

Letter from employer confirming applicant’s involvement in establishing the service

performance system and/or current plan for the organisation and that they are

competent in all aspects of managing service performance

Reports prepared for management documenting the outcomes of a service

performance review conducted during the last two years and recommending any

remedial actions, this report should include data analysis and statistical information

and copies of the documents use to collect / audit the data

Copies of action plans to correct errors or service gaps

Report prepared evaluating the service performance system and recommending

improvements or changes OR recommending the establishment of a service

performance system for the organisation

Copies of policies and procedures relating to a compliance management system

established and managed by the applicant

CV / Resume showing relevant work experience as a Compliance Manager in the

insurance industry and/or a job description showing responsibilities for compliance

management and the compliance management system as part of role with a different

title

Letter from employer confirming applicants involvement in establishing and managing

the compliance system

financial services training package insurance broking fns15 · explain the operation of insurance...

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