Unit of competency Outline
Date retreived
22/07/2026 1:32 PM AWST
22/07/2026 1:32 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.
Provide personal advice in general insurance broking products and services
Provide personal advice in general insurance broking products and services
Unit of competency
National Code
FNSIBK402B
FNSIBK402B
State Code
D9440
D9440
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
45
Description
This unit is designed for insurance brokers advising retail and wholesale consumers and current clients in standard general insurance products.The broker advisory process involves reviewing a current insurance program to determine gaps, or scope of the existing policy coverage in order to develop an appropriate insurance plan for the consumer/client. This unit requires skills to access and review risk information and apply knowledge of insurance products to identify and advise on changes to an insurance program with a new business or renewal client.This unit is applicable to individuals working within insurance broking enterprises and in broking adviser job roles subject to licensing regulation by the Australian Securities and Investments Commission (ASIC).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 general 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
- 1.5 Client is informed of the brokerage procedures for complaints handling
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
- 2.2 A range of communication and interpersonal skills are used to establish client objectives and goals
- 2.3 Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details
3. Analyse client risk information
- 3.1 All information from the client risk assessment process is analysed
- 3.2 The need for specialist advice or client industry information is sought if required to address issues that professional judgement indicates may require further consideration
- 3.3 Records of risks assessed and actions taken are checked to ensure information is current and comprehensive
- 3.4 Required insurance program and/or products are fully identified using an appropriate checklist
- 3.5 Clients are consulted throughout the analysis for further clarification where necessary
- 3.6 Follow-up questioning is undertaken to ensure that the client understood earlier questions and that information received by them is relevant and complete
4. Identify changes to insurance program
- 4.1 Current insurance program is compared with the checklist and new and additional risks identified so that discrepancies are clear
- 4.2 Available options are identified and assessed using information from risk analysis
- 4.3 Relevant product research is conducted
- 4.4 Advice for presentation to the client is prepared in accordance with organisational policy
- 4.5 Checks to ensure the advice has been scaled and suitable to the requirements of the advice situation are made
- 4.6 Checks that restricted words are used appropriately in the delivery of advice are made
- 4.6 Checks are made that the reasoning behind the advice and any conflicts of interest that affect the advice have been disclosed
5. Present appropriate solutions to the client
- 5.1 Features of the advice are explained to the client in a clear and unambiguous way
- 5.2 Relevant details, terms and conditions of the underlying products/services are explained to the client
- 5.3 Requirements to put the recommended program into effect are explained to the client
- 5.4 Client is provided with written supporting documentation and guided through the key aspects of the documentation
- 5.5 Advice from the client on required changes is sought without delay
- 5.6 Client declarations as required by underwriter are obtained
6. Negotiate program changes with insurers as required
- 6.1 Terms for the client requirements are obtained
- 6.2 Terms required for renewal and change of client's insurance are clarified with insurers
- 6.3 Outcomes of negotiation with insurers are advised to client to enable an informed decision to be made
- 6.4 Options that specify benefits and disadvantages are clarified for the client based on application of broker’s industry knowledge
- 6.5 Justified recommendations are presented and clarified in accordance with organisational and regulatory requirements for provision of advice
- 6.6 Client instructions are obtained to enable precise action to be taken
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
financial literacy of the client
the complexity of the advice requested.
Disclosure documents may include:
financial services guide
product disclosure statement
statement of advice.
Client's objectives and goals may include:
business needs
expectations of product coverage
insurer security.
Risk assessment process might include:
checklists
specialist risk reports
surveys.
Scaled and suitable advice may include:
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.
Level of insurance broking advice may include:
extent of the client’s enquiry
financial literacy of the client
the complexity of the advice requested.
Disclosure documents may include:
financial services guide
product disclosure statement
statement of advice.
Client's objectives and goals may include:
business needs
expectations of product coverage
insurer security.
Risk assessment process might include:
checklists
specialist risk reports
surveys.
Scaled and suitable advice may include:
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.
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:
apply core and specialist knowledge of standard general insurance
maintain currency of knowledge of general insurance products and be able to apply their knowledge in practical situations to tailor specific advice to the client
interpret available information about a client’s risk needs and products and 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
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply core and specialist knowledge of standard general insurance
maintain currency of knowledge of general insurance products and be able to apply their knowledge in practical situations to tailor specific advice to the client
interpret available information about a client’s risk needs and products and 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
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| D4180 | FNSIBK402A | Provide personal advice in general insurance broking products and services (Tier 2) | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR39 | FNSIBK402 | Implement new or renewed insurance program for insurance broking clients | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S698 | FNS30610 | Certificate III in Insurance Broking | Qualification |
| S716 | FNS41710 | Certificate IV in Insurance Broking | Qualification |