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: 

Demonstrate knowledge and insight into reinsurance in the context of risk financing 
SAQA US ID UNIT STANDARD TITLE
243164  Demonstrate knowledge and insight into reinsurance in the context of risk financing 
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 to empower learners in insurance or reinsurance to add value to and influence decisions relating to reinsurance. It is intended for learners in short term insurance and reinsurance organisations who arrange reinsurance programmes to protect against overexposure and to alleviate possible credit risk. It will be useful for Reinsurers, Underwriters, Insurance Brokers who arrange co-insurance, Claims Managers and people in insurance who negotiate reinsurance facilities.

The qualifying learner is capable of:
  • Explaining reinsurance in the context of risk financing.
  • Applying knowledge of reinsurance to select a reinsurance programme appropriate to a specific risk profile.
  • Demonstrating knowledge and insight into legislation that impacts on reinsurance programmes.
  • Recommending a solution for a business proposal that falls outside of an existing programme. 

  • 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:
  • Documentation required in order to implement a selected programme and set up operational procedures includes, but is not limited to, accounting procedures, claims payments, collection and recoveries and the impact of clauses on other agreements in the portfolio.
  • Statutory requirements if a reinsurer is below the minimum security standards include, but are not limited to, financial standing, credit rating, credit guarantees and letters of comfort. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain reinsurance in the context of risk financing. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The importance of transparency of reinsurance in a risk financing programme is explained with reference to knowledge of the full programme on the part of the insured and intermediary. 

    ASSESSMENT CRITERION 2 
    Reinsurance programmes applicable to first and third parties are compared in the context of risk financing. 

    ASSESSMENT CRITERION 3 
    Different reinsurance products are analysed with reference to credit risk, automatic facultative arrangements and spread of loss. 

    SPECIFIC OUTCOME 2 
    Apply knowledge of reinsurance to select a reinsurance programme appropriate to a specific risk profile. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The risks in a specific portfolio are analysed to determine the best product selection to provide the required protection. 

    ASSESSMENT CRITERION 2 
    The documentation required to implement a selected protection programme and set up operational procedures are identified for a specific risk. 

    SPECIFIC OUTCOME 3 
    Demonstrate knowledge and insight into legislation that impacts on reinsurance programmes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    South African legislation that impacts on reinsurance is identified for a specific risk and an indication is given of the implications for reinsurance. 

    ASSESSMENT CRITERION 2 
    Legislation in countries of the African Union (AU) that impacts on reinsurance is identified for a specific risk and an indication is given of the implications of local legislation for a reinsurance programme. 

    ASSESSMENT CRITERION 3 
    Legislation in countries outside of Africa that impacts on reinsurance is identified for a specific risk and an indication is given of the implications of local legislation for a reinsurance programme with specific reference to Lloyd's of London. 

    SPECIFIC OUTCOME 4 
    Recommend a solution for a business proposal that falls outside of an existing programme. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Factors that determine acceptable reinsurance are identified and an indication is given of statutory requirements if a reinsurer is below the minimum security standards. 

    ASSESSMENT CRITERION 2 
    A proposal on acceptability of a specific reinsurer for a specific risk is presented and substantiated based on expert reports. 


    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 
    Learners are capable of identifying and solving problems in which responses show that responsible decisions using critical and creative thinking have been made in presenting and substantiating a proposal on the acceptability of a specific reinsurer for a specific risk. 

    UNIT STANDARD CCFO ORGANISING 
    Learners are capable of organising and managing their activities responsibly and effectively in researching information on legislation in countries of the African Union (AU) and presenting the findings of their research. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are capable of collecting, organising and critically evaluating information in using expert reports to make a recommendation. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able communicate clearly in presenting a proposal on the acceptability of a specific reinsurer for a specific risk. 

    UNIT STANDARD CCFO SCIENCE 
    Learners are capable of using and technology effectively and critically in researching information on countries of the AU and countries outside of Africa. 

    UNIT STANDARD CCFO DEMONSTRATING 
  • Learners are capable of demonstrating cultural sensitivity across a range of social contexts in understanding the implications of local legislation for reinsurance programmes.
  • Learners are capable of understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation by recognising the impact of legislation and local contexts on a reinsurance programme. 

  • 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 
    N/A 

    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 


    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. Invuya Institute of Learning (Pty) Ltd 
    3. Masifunde Training Centre (Pty) Ltd 
    4. Ripple Effect 4 (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.