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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply knowledge of accounting practices to Short Term insurance and reinsurance 
SAQA US ID UNIT STANDARD TITLE
243176  Apply knowledge of accounting practices to Short Term insurance and 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 for learners with an accounting background who work in finance and actuarial departments of short term insurers and reinsurers. It deals with short term insurance specific knowledge and skills that are not usually part of accounting courses. It will be useful for Senior Managers, Executives and others who are required to understand the financial statements of short term insurers.

The qualifying learner is capable of:
  • Applying knowledge of the matching principle to premium and commission.
  • Demonstrating knowledge and application of the principle of reserving in short term insurance.
  • Applying basic knowledge of provisioning principles to determine claims' reserves.
  • Analysing and interpreting the income statement and balance sheet of a short term insurer. 

  • 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:
  • Different ways of calculating reserves include, but are not limited to, 365th, increasing risks and uneven risks.
  • The amounts due from an intermediary include bordereau.
  • Reserving and unknown claims includes incurred but not reported claims (IBNR). 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Apply knowledge of the matching principle to premium and commission. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The treatment of monthly and annual premium and commission is compared with reference to the matching principle. 

    ASSESSMENT CRITERION 2 
    The matching and clearing process is used to determine or revise the amounts due from an intermediary. 

    SPECIFIC OUTCOME 2 
    Demonstrate knowledge and application of the principle of reserving in short term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Different methods of calculating reserves are demonstrated with examples. 

    ASSESSMENT CRITERION 2 
    Reasons why short term insurers apply the principles of reserving are explained with examples. 

    ASSESSMENT CRITERION 3 
    The process used to record the calculated reserves is demonstrated by journal entries over a set period. 

    ASSESSMENT CRITERION 4 
    The consequences of miscalculation or incorrect entries are explained with reference to financial statements. 

    SPECIFIC OUTCOME 3 
    Apply basic knowledge of provisioning principles to determine claims' reserves. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The claims' provision for known claims is explained with reference to the claims' process for a specific insurer. 

    ASSESSMENT CRITERION 2 
    Reasons why insurers provide for unknown claims are explained with reference to the claims history of the insurer and the actuarial assumptions. 

    ASSESSMENT CRITERION 3 
    The process used to calculate and record provision for claims is demonstrated by journal entries over a set period. 

    ASSESSMENT CRITERION 4 
    The effect of inadequate claims' provision on a financial statement is explained with examples. 

    ASSESSMENT CRITERION 5 
    The use of statistical modelling in calculating claims' reserves is explained with examples. 

    SPECIFIC OUTCOME 4 
    Analyse and interpret the income statement and balance sheet of a short term insurer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Insurance specific terminology used in financial reporting is explained with reference to a specific financial statement. 

    ASSESSMENT CRITERION 2 
    The underwriting, claims, expense and solvency ratios are calculated and interpreted as a percentage of earned premium based on an income statement. 


    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 COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in analysing and interpreting the income statement and balance sheet of a short term insurer. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using mathematics and language skills in calculating underwriting, claims, expense and solvency ratios and explaining the terminology used in the financial statements of short term insurers. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating an understanding of the world as a set of related systems in explaining the consequences of miscalculation or incorrect entries on the financial statement of a short term 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
    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.