Unit of competency Outline
Date retreived
22/07/2026 9:56 AM AWST
22/07/2026 9:56 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.
Evaluate risk for new business
Evaluate risk for new business
Unit of competency
National Code
FNSISV401A
FNSISV401A
State Code
D4233
D4233
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 evaluate risk for new business including gathering the risk information, and reviewing and assessing it against appropriate risk criteria.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. Identify and obtain risk information
- 1.1. All sources of risk information are identified, gathered and recorded and deficiencies rectified
- 1.2. Information is reviewed to determine its relevance and reliability and the integrity of its source
- 1.3. Data is formatted for easy access
- 1.4. Legislative and compliance requirements are adhered to in all cases
2. Assess information against established risk acceptance criteria
- 2.1. All relevant risk information is assessed to determine if it is comprehensive and pertinent to the nature of the risk
- 2.2. Surveys/reports are reviewed and commissioned if applicable to risk
- 2.3. Data on risk exposure from survey report is interpreted
- 2.4. Risk information is compared against risk acceptance criteria and organisation capacity to assess and accept risk according to terms and conditions of risk assessment
- 2.5. Liaison with other internal departments is conducted to assess impact on business if applicable
- 2.6. Proposed amendments to organisation wording are reviewed and compared to acceptance criteria
- 2.7. Risk assessment data is documented according to organisation policy and procedures
3. Issue a quotation
- 3.1. Quote based on all the risk assessment data is prepared and communicated if required
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.
Sources of risk information may include:
amendments
broker slips
claims
general knowledge
insurance reference services
legal cases
pre-underwriting report
previous insurers
proposals
publications (industry associations and trade journals)
stock exchange
surveys
telephone contacts
any other source the insurer deems relevant.
Legislative and compliance requirements may include:
codes of practice
Corporations Act
FSRA
relevant Australian Securities and Investments Commission (ASIC) requirements.
Reports may include:
pre-underwriting reports which are usually computer reports on policy premiums and claims
reports regarding reinsurance requirements and changes in the physical risk exposure.
Risk acceptance criteria may include:
claims history
class of business
driving and/or accident history
locality
minimum security levels.
Terms of conditions of risk assessment may include:
additional exclusions
adequate reinsurance cover
claims history
endorsements
excesses/deductibles
extensions
internal and industry statistics
pricing
quality of risk
risk factors
risk improvement requirements
sub-limits
variations in policy wording
warranties.
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.
Sources of risk information may include:
amendments
broker slips
claims
general knowledge
insurance reference services
legal cases
pre-underwriting report
previous insurers
proposals
publications (industry associations and trade journals)
stock exchange
surveys
telephone contacts
any other source the insurer deems relevant.
Legislative and compliance requirements may include:
codes of practice
Corporations Act
FSRA
relevant Australian Securities and Investments Commission (ASIC) requirements.
Reports may include:
pre-underwriting reports which are usually computer reports on policy premiums and claims
reports regarding reinsurance requirements and changes in the physical risk exposure.
Risk acceptance criteria may include:
claims history
class of business
driving and/or accident history
locality
minimum security levels.
Terms of conditions of risk assessment may include:
additional exclusions
adequate reinsurance cover
claims history
endorsements
excesses/deductibles
extensions
internal and industry statistics
pricing
quality of risk
risk factors
risk improvement requirements
sub-limits
variations in policy wording
warranties.
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:
interpret and comply with all relevant legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop a suitable policy
maintain knowledge of relevant organisation products and services
apply relevant underwriting guidelines and procedures
identify and investigate risk as it relates to new business in accordance with underwriting and organisation guidelines
document risk assessment data in accordance with organisation guidelines.
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.
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:
interpret and comply with all relevant legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop a suitable policy
maintain knowledge of relevant organisation products and services
apply relevant underwriting guidelines and procedures
identify and investigate risk as it relates to new business in accordance with underwriting and organisation guidelines
document risk assessment data in accordance with organisation guidelines.
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.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS17 | FNSISV401 | Evaluate risk for new business | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D713 | FNS41411 | Certificate IV in General Insurance | Qualification |
| S704 | FNS40510 | Certificate IV in Personal Injury Management (Underwriting) | Qualification |