Provide personal advice in life insurance broking products and services

Unit of competency Outline

Date retreived
23/07/2026 11:28 PM 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.

Unit of competency

National Code
FNSIBK504B

State Code
D9444

TGA Status
Replaced

DTWD Status
Replaced

Current Release Number
1.00

Current Release Date
16/01/2012

View on TGA

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

Description

This unit describes the performance outcomes, skills and knowledge required to advise retail and/or wholesale clients in life insurance broking products and services. It encompasses preparation of an insurance program for a prospective new broking client or remarketing to an existing client.This unit is applicable to individuals working within an insurance broking or other financial services enterprise and in broking adviser roles subject to licensing regulation by the Australian Securities and Investments Commission (ASIC). It covers the functions undertaken by an insurance broker providing personal advice in life insurance.Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC.

Notes

Elements and Performance Criteria

1. Establish relationship with client

1.1 A range of communication and interpersonal skills are used to establish the knowledge level of client and clarify the level of insurance broking advice to be provided
1.2 Broker authorisation to deal with the client’s needs is established and referral to appropriate adviser for higher level/specialist advice made, if required
1.3 Enquiries are responded to by explaining the range of life insurance products and broking services available and their relevant fee and charging methodology
1.4 Role of the broker and the licensee/principal responsible for the adviser’s conduct is advised to the client

2. Identify client objectives and risk situation

2.1 Regulations, codes and procedures set out in organisation compliance manuals for the personal advice process are complied with including delivery of appropriate disclosure documents and information about complaints handling processes
2.2 A range of communication and interpersonal skills are used to encourage the consumer to express their short-, medium- and long-term goals relevant to the product
2.3 Where relevant, a product risk profile of the client is identified, assessed and agreed

3. Determine submission resource requirements

3.1 Nature of submission required by prospective client is determined
3.2 Skill requirements to prepare submission are identified
3.3 The need for specialist advice or client industry information is sought if required to address issues that professional judgement indicates may require further consideration
3.4 Consultants with required skills are identified and retained as required
3.5 Team is established with team leader identified as required

4. Apply risk assessment methodology

4.1 Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details
4.2 Risk assessment is completed in compliance with guidelines
4.3 Comprehensive records are maintained of risk assessment and actions taken

5. Analyse client risk information

5.1 All information from the client risk assessment and profiling process is analysed
5.2 Comprehensive records of risks assessed and actions taken are checked to ensure information is current and comprehensive
5.3 Required insurance program and/or products are fully identified using an appropriate checklist
5.4 Clients are consulted throughout the analysis for further clarification where necessary
5.5 Follow-up questioning to ensure that the client understood earlier questions and that information received by them is relevant and complete is undertaken

6. Identify appropriate insurance program

6.1 Appropriate insurance/risk management program based on risk assessment and client profile and needs is determined
6.2 Proposed program is compared with appropriate checklist and other similar clients and significant changes identified
6.3 Available options are identified and assessed using information from risk analysis
6.4 Relevant product research is conducted
6.5 Advice for presentation to the client is prepared in accordance with organisational policy
6.6 Checks to ensure the advice has been scaled and suitable to the requirements of the advice situation are made
6.7 Checks that restricted words are used appropriately in the delivery of advice are made
6.8 Checks are made that the reasoning behind the advice and any conflicts of interest that affect the advice have been disclosed are made

7. Identify market availability

7.1 Where applicable, availability of a market with suitable terms for the client requirements is identified
7.2 Where applicable, indicative terms of cover are sourced with insurers to provide the most beneficial outcome for the prospective client

8. Make submission to prospective client

8.1 Required written submission is provided to client in format required by the organisation
8.2 Options that specify benefits and advantages are identified for the prospective client
8.3 Features of the advice are explained to the client in a clear and unambiguous way
8.4 Relevant details, terms and conditions of the underlying products/services are explained to the client
8.5 Requirements to put the recommended program into effect are explained to the client
8.6 Client is provided with written supporting documentation and guided through the key aspects of the documentation
8.7 Distribution of relevant disclosure documents is established

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.

Level of insurance broking advice may include:
extent of the client’s enquiry, the complexity of the advice requested and the financial literacy of the client.
Disclosure documents and information may include:
financial services guide
product disclosure statement
statement of advice.
Short, medium and long term goals may include:
beliefs about performance and risk
business needs
expectations of access to the product
expectations of lifecycle and length of the product
expectations of product coverage
family income
insurer security.
Risk assessment processes may include:
amendments
broker slips
legal cases
pre-underwriting report
previous insurers
proposals
surveys.
Significant changes may involve:
complex technical determinations
high monetary impact
important client base.
Scaled and suitable:
advice has a specific definition in the ASIC guidelines on disclosure and conduct of advisers in its regulatory guides.
Restricted words may include:
impartial
independent
unbiased.
Terms of cover may include:
deductibles/excesses required
limit of liability/sub-limits
price
scope of cover
security of carrier.
Submission may include:
conceptual quotation
firm quotation
to prospective clients.

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:
maintain and apply knowledge of products and specialist knowledge of general insurance products, practices, global markets and exposures
apply knowledge in practical situations to tailor specific advice to the client
comply with industry and of organisation obligations and objectives
interpret available information about the client’s risk needs and products
apply discretion and judgement in developing an appropriate solution.
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 organisational 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
AUR50	FNSIBK513	Prepare a submission for new business	Unit of competency

State Code	National Code	Title	Type
S728	FNS51210	Diploma of Insurance Broking	Qualification