SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Design a funding model to make provision for financial consequences of losses in an entity 
SAQA US ID UNIT STANDARD TITLE
242583  Design a funding model to make provision for financial consequences of losses in an entity 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for Senior Underwriters and Senior Intermediaries who write large commercial and corporate insurance policies to achieve a competitive advantage.

The qualifying learner is capable of:
  • Demonstrating knowledge and understanding of different insurance models.
  • Analysing existing policy documents and claims statistics.
  • Applying an insurance model to create a model for a specific entity.
  • Drafting a wording for a selected model. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Insurance models for large commercial and corporate entities. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate knowledge and understanding of different insurance models. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A model for cash flush Corporates or large businesses is described in terms of how the model is applied, when it is appropriate and the tax implications. 

    ASSESSMENT CRITERION 2 
    A model for Corporates or large businesses that are perceived to be a good risk is described in terms of how the model is applied, when it is appropriate and the tax implications. 

    ASSESSMENT CRITERION 3 
    A model for Corporates or large businesses that gives the insurer and intermediary a competitive edge is described in terms of how the model is applied, when it is appropriate and the tax implications. 

    ASSESSMENT CRITERION 4 
    A model an entity with cash flow problems is described in terms of how the model is applied, when it is appropriate and the tax implications. 

    ASSESSMENT CRITERION 5 
    A model for a large growing business or emerging company is described in terms of how the model is applied, when it is appropriate and the tax implications. 

    ASSESSMENT CRITERION 6 
    A model for a major Corporate is described in terms of how the model is applied, when it is appropriate and the tax implications. 

    SPECIFIC OUTCOME 2 
    Analyse existing policy documents and claims statistics. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Selected policy documents are analysed to determine the funding model used in each case. 

    ASSESSMENT CRITERION 2 
    Actual claims statistics are applied to the model to evaluate the effectiveness for the insurer and the client. 

    ASSESSMENT CRITERION 3 
    Suggestions are made to change the model and determine renewal conditions. 

    SPECIFIC OUTCOME 3 
    Apply an insurance model to create a model for a specific entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The risk appetite is determined for a specific entity. 

    ASSESSMENT CRITERION 2 
    The loss history of an entity is analysed to anticipate potential losses and produce a base premium. 

    ASSESSMENT CRITERION 3 
    A range of insurance models is tested against the insurance ratio to obtain the best result. 

    ASSESSMENT CRITERION 4 
    An appropriate model is applied to create a win-win situation for the entity and the insurer. 

    ASSESSMENT CRITERION 5 
    The choice of funding model is substantiated using quantitative data. 

    SPECIFIC OUTCOME 4 
    Draft a wording for a selected model. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    An asset all risks wording is adapted for the selected model to produce an endorsement using appropriate language. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is capable of identifying and solving problems in which responses show that responsible decisions using critical thinking have been made in proposing and substantiating a funding model for an entity. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in determining the risk appetite and loss history of an entity and testing a range of insurance models against the insurance ratio. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively using visual, mathematics and language skills in substantiating a model and drafting a policy wording for the selected model. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating an understanding of the world as a set of related systems in creating a win-win situation for the insurer and the entity. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Search words: Funding model, insurance model. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    3. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    4. Boland Public FET College - Central Office 
    5. CKP Development Agency (Pty) Ltd. 
    6. COLLEGE OF CAPE TOWN 
    7. College of Cape Town - Central Office 
    8. False Bay College 
    9. Intec College 
    10. Invuya Institute of Learning (Pty) Ltd 
    11. Masifunde Training Centre (Pty) Ltd 
    12. North Link College 
    13. Old Mutual Life Assurance Company South Africa 
    14. Ray Strodl Consulting (Pty) Ltd 
    15. Ripple Effect 4 (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. South Cape College 
    19. South Cape Public FET College - Central Office 
    20. The Institute of Health Risk Managers (Pty) Ltd 
    21. Umfolozi FET College - Central Office 
    22. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.