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 understanding of the principles and practices of reinsurance 
SAQA US ID UNIT STANDARD TITLE
243166  Demonstrate knowledge and understanding of the principles and practices of reinsurance 
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 
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 will be useful for learners who are involved in or who give advice on the management of risk. It will be useful for Reinsurers, Underwriters, Insurance Brokers who arrange co-insurance, Claims Administrators and people in insurance who negotiate reinsurance facilities.

The qualifying learner is capable of:
  • Explaining the different types of reinsurance treaties and facultative arrangements used in the insurance industry.
  • Applying knowledge of reinsurance to analyse the reinsurance or retrocession programme of a selected insurer or reinsurer.
  • Analysing how a reinsurance or retrocession programme influences the operational aspects of a risk carrier. 

  • 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 reinsurance programmes of insurers or retrocession programmes of reinsurers.
  • Types of treaty include, but are not limited to, proportional and non-proportional treaties.
  • Proportional treaties include, but are not limited to, quota share treaties and surplus treaties.
  • Non-proportional treaties include, but are not limited to, risk excess of loss, catastrophe excess of loss, combined risk and catastrophe and excess of loss and stop loss.
  • Reinsurance information required by reinsurers includes, but is not limited to, value band information, cresta zone information, estimated premium income, business plan, total funds insured, target risks, maximum probable loss and schedule of limits and claims history.
  • Reinsurance and retrocession programmes include, but are not limited to, conditions, exclusions and limits.
  • Documentation required to accompany a proposal includes, but is not limited to, slips, bordereau, comparisons of options, thought process and what is required in order to apply the solution. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the different types of reinsurance treaties and facultative arrangements used in the insurance industry. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A treaty document is analysed and explained in terms of type, class, structure, costing and the implications for the insurer and reinsurer. 

    ASSESSMENT CRITERION 2 
    A facultative arrangement is analysed with reference to the relationship between treaty and facultative arrangements. 

    ASSESSMENT CRITERION 3 
    The underwriting requirements of the reinsurer are identified and an indication is given as to why the information is required and how it can be accessed for a specific insurer. 

    SPECIFIC OUTCOME 2 
    Apply knowledge of reinsurance to analyse the reinsurance or retrocession programme of a selected insurer or reinsurer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A reinsurance or retrocession programme is analysed to determine the appropriateness of the programme for the insurer and reinsurer. 

    ASSESSMENT CRITERION 2 
    The impact of a large claim on the reinsurance or retrocession programme is explained with reference to the renewal of the programme. 

    SPECIFIC OUTCOME 3 
    Analyse how a reinsurance or retrocession programme influences the operational aspects of a risk carrier. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A business proposal is analysed to determine how it is catered for in a reinsurance or retrocession programme. 

    ASSESSMENT CRITERION 2 
    Possible solutions to cater for aspects of the proposal that are not catered for by the reinsurance or retrocession programme are explored for a specific proposal. 


    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 recommending a solution for a business proposal that falls outside of an existing programme. 

    UNIT STANDARD CCFO ORGANISING 
    Learners are capable of organising and managing their activities responsibly and effectively in working systematically and accurately to determine the appropriateness of a reinsurance or retrocession programme for an insurer or reinsurer. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are capable of collecting, organising and critically evaluating information in exploring possible solutions to deal with aspects not catered for in a reinsurance or retrocession programme and determining an appropriate programme for an insurer or reinsurer. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating clearly in proposing a solution, producing the accompanying documentation, and in analysing and evaluating information in a reinsurance or retrocession programme. 

    UNIT STANDARD CCFO SCIENCE 
    Learners are capable of using technology effectively and critically in using a reinsurance or retrocession programme. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are capable of seeing the world as a set of related systems in explaining how the reinsurance or retrocession programme influences the operational aspects of a business. 

    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.