Unit of competency Outline
Date retreived
24/07/2026 12:32 AM AWST
24/07/2026 12:32 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Negotiate treaty reinsurance
Negotiate treaty reinsurance
Unit of competency
National Code
FNSISV504A
FNSISV504A
State Code
D4242
D4242
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
29/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to negotiate treaty reinsurance in accordance with organisation guidelines and procedures. It encompasses analysing, preparing and negotiating treaty insurance with a supplier.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).
Notes
Elements and 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
RANGE STATEMENT
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.
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.
EVIDENCE GUIDE
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 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
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS13 | FNSISV504 | Negotiate treaty reinsurance | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S727 | FNS51110 | Diploma of General Insurance | Qualification |
| D776 | FNS51312 | Diploma of Life Insurance | Qualification |