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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of the financial consequences of a large claim to an insurer or reinsurer 
SAQA US ID UNIT STANDARD TITLE
243168  Demonstrate knowledge and understanding of the financial consequences of a large claim to an insurer or reinsurer 
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 for learners who assess and/or advise on the adequacy of Short Term reinsurance cover. It will be useful for Internal Risk Managers, Reinsurance Brokers, Reinsurers and any learner who requires knowledge of reinsurance.

The qualifying learner is capable of:
  • Analysing the negotiated merits and determining quantum of a large claim.
  • Analysing the implications and consequences of a large claim for the financial performance of an insurer.
  • Proposing steps to minimise future loss.
  • Explaining the impact of a claim on the statutory requirements of the Short Term Insurance Act. 

  • 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:
  • Treaties including, Utilising a quota share (QS), Excess of loss (XOL), Excess loss layers (XL) and Catastrophe (CAT). 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the negotiated merits and determine quantum of a large claim. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The projected claims losses of an insurer for a selected year are compared to the actual losses arising out of a specific event. 

    ASSESSMENT CRITERION 2 
    The impact of a specific claim on the budget is analysed with reference to loss ratio. 

    ASSESSMENT CRITERION 3 
    The merits of a claim are analysed to inform future exclusions and policy wordings and to ensure fairness. 

    SPECIFIC OUTCOME 2 
    Analyse the implications and consequences of a large claim for the financial performance of an insurer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The cash flow policy for a specific insurer is analysed to determine the appropriate timing and source of funds for payment of a large claim. 

    ASSESSMENT CRITERION 2 
    The effects of a large claim on the financials of an insurer are analysed with reference to cash flow and investments. 

    SPECIFIC OUTCOME 3 
    Propose steps to minimise future loss. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The reinsurance treaties available to a specific insurer are investigated to determine the ultimate net loss for an insurer. 

    ASSESSMENT CRITERION 2 
    The actual treaty placement and ultimate net loss are compared and evaluated to determine whether the actual placement was the best case scenario. 

    SPECIFIC OUTCOME 4 
    Explain the impact of a claim on the statutory requirements of the Short Term Insurance Act. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Requirements relating to the solvency margins are explained with reference to the consequences of a large claim. 

    ASSESSMENT CRITERION 2 
    The effect of a large claim on contingency reserves and other assets are explained for a specific claim. 


    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 steps to minimise future loss. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in analysing the implications and consequences of a large claim for financial performance. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively in explaining the requirements relating to solvency margins and analysing the merits of a claim. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is capable of using technology effectively and critically in accessing information relating to claims losses from an electronic system. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating an understanding of the world as a set of related systems in understanding the financial consequences of a claim to an insurer. 

    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
    Core  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.