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 QUALIFICATION: 

Occupational Certificate: Insurance Agent: Insurance Underwriter 
SAQA QUAL ID QUALIFICATION TITLE
91784  Occupational Certificate: Insurance Agent: Insurance Underwriter 
ORIGINATOR
Development Quality Partner - INSETA 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY NQF SUB-FRAMEWORK
QCTO - Quality Council for Trades and Occupations  OQSF - Occupational Qualifications Sub-framework 
QUALIFICATION TYPE FIELD SUBFIELD
Occupational Certificate  Field 03 - Business, Commerce and Management Studies  Finance, Economics and Accounting 
ABET BAND MINIMUM CREDITS PRE-2009 NQF LEVEL NQF LEVEL QUAL CLASS
Undefined  156  Not Applicable  NQF Level 05  Regular-ELOAC 
REGISTRATION STATUS SAQA DECISION NUMBER REGISTRATION START DATE REGISTRATION END DATE
Reregistered  SAQA 06120/18  2018-07-01  2023-06-30 
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 qualification does not replace any other qualification and is not replaced by any other qualification. 

PURPOSE AND RATIONALE OF THE QUALIFICATION 
Purpose:
The purpose of this qualification is to prepare a learner to evaluate and interpret information to protect stakeholders' interests by using specialist technical knowledge to determine, price, manage and transfer risk.

A qualified learner will be able to:
  • Apply and adhere to operational and administrative procedures and practices.
  • Evaluate risk information to determine risk profile and manage risk exposure.
  • Understand and apply basic legal and insurance principles to underwriting recommendations.
  • Understand and apply knowledge of product and pricing to underwrite profitable risks.

    Rationale:
    According to the Insurance Draft Sector Skills Plan (SSP) 2010, "the Inseta Scarce Skills for financial year 2009, top three are: Insurance Sales Consultant, Professionals in the Insurance Sector and Managers in the Insurance Sector" (SSP, 2010: 7). Whilst Underwriter is not explicitly named, the occupation is understood to be a professional in the insurance sector.

    The profession exists in all the major sub-sectors; Short term, Long term and medical and professional bodies and expert practitioners from all sub-sectors and professional bodies (IISA and ASISA) were therefore asked to participate in development. The resultant qualification is thus broad enough to represent all three sub-sectors.

    Learners can be taken from a wide range of individuals, including those with experience in the industry and new entrants. The areas of underwriting, claims or product development are best aligned to the outcomes of this qualification.

    This qualification will benefit individuals who have worked competently within the underwriting profession without any option for formal education to be certificated, based on Recognition of Prior Learning. It will also professionalise the occupation by providing a minimum educational standard against which to train new entrants and thus ensure that the ratio of technical expertise within industry to rate risk is kept at a sufficiently high level of competence, compliance and efficiency. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Recognition of Prior Learning (RPL):
    RPL for access to the integrated assessment: Accredited providers and approved workplaces must apply the internal assessment criteria specified in the related curriculum document to establish and confirm prior learning. Prior learning must be acknowledged by a statement of results.

    RPL for entry requirements to access the qualification: Accredited providers and approved workplaces may recognise prior learning against the relevant access requirements.

    Entry Requirements:
    Grade 12 and/or equivalent or at least five years of Insurance work experience. 

    RECOGNISE PREVIOUS LEARNING? 

    QUALIFICATION RULES 
    This qualification is made up of the following compulsory Knowledge and Practical Skill Modules:

    Knowledge Modules:
  • Administration and record keeping in Insurance NQF Level 4, 16 Credits.
  • Insurance Risk Management for Underwriters NQF Level 5, 16 Credits.
  • Application of Legal and Insurance Principles, NQF Level 5, 8 Credits.
  • Rating and Pricing of Insurance Risks and Products, NQF Level 5, 8 Credits.

    Total number of credits for Knowledge Modules: 48.

    Practical Skill Modules:
  • Applying and adhering to operational and administrative procedures and practices NQF Level 5, 13 Credits.
  • Evaluating risk information to determine risk profile and manage risk exposure, NQF Level 5, 8 Credits.
  • Understanding and applying basic legal and insurance principles to underwriting recommendations, NQF Level 5, 6 Credits.
  • Understanding and applying knowledge of product and pricing to underwrite profitable risks, NQF Level 5, 13 Credits.

    Total number of credits for Practical Skill Modules: 40.

    This qualification also requires the following compulsory Work Experience Modules:
  • Records maintained accurately and effectively, NQF Level 5, 17 Credits.
  • Risk exposure is managed, NQF Level 5, 12 Credits.
  • Legal and insurance principles applied, NQF Level 5, 12 Credits.
  • Competitive rating applied, NQF Level 5, 27 Credits.

    Total number of credits for Work Experience Modules: 68. 

  • EXIT LEVEL OUTCOMES 
    1. Apply and adhere to operational and administrative procedures and practices.
    2. Evaluate risk information to determine risk profile and manage risk exposure.
    3. Understand and apply basic legal and insurance principles to underwriting recommendations.
    4. Understand and apply knowledge of product and pricing to underwrite profitable risks. 

    ASSOCIATED ASSESSMENT CRITERIA 
    Associated Assessment Criteria for Exit Level Outcome 1:
  • Identify and explain compliance requirements with regard to Industry protocols and standards.
  • Identify and explain compliance requirements with regard to FAIS Code of Conduct requirements.
  • Identify and explain compliance requirements with regard to FICA requirements.
  • Discuss client, insurer and third party provider confidentiality and conflict of interest as ethical issues.
  • Illustrate ability in report and business writing, communication and meeting etiquette.
  • Demonstrate decision making skills.
  • Demonstrate ability to understand the principles and outcomes of a financial statement/s.
  • Describe insurance and financial technical terms relevant to underwriting.

    Associated Assessment Criteria for Exit Level Outcome 2:
  • Identify and explain terminology of underwriting (inc Reinsurance - Facultative and Treaty).
  • Define the following Insurance principles in order to restate in own words; Subrogation, average, contribution, indemnity, compensation, disclosures (material fact), proximate cause.
  • Describe why underwriters are necessary and briefly explain the 'cycle of underwriting'.
  • Define "Insurable Risk".
  • Describe how the insurance process quantifies risk.
  • Describe the various types of risk - financial, moral, physical, pure, speculative, particular and fundamental - and how they relate to the decisions required of underwriters.
  • Describe the concepts of "severity" and "frequency" and how they influence the underwriting decision.
  • Explain the following Risk Management Actions - Avoid, Retain, Transfer the Risk and indicate when and why each action would be employed by an underwriter.
  • Explain how risk management principles are applied to the underwriting process.
  • Contrast self regulatory processes with state regulation showing the roles of each of the following entities; Financial Services Board (FSB), Ombud, Financial Intermediaries Association (FIA), Association of Savings and Investments South Africa (ASISA), South African Insurance Association (SAIA).
  • Describe the main features and objectives of the important legislation affecting the insurance industry.
  • Describe an Underwriting Mandate and the function thereof.
  • Define underwriting criteria (age, income, occupation, dependents, environment, interest and habits, utilities, health history, where applicable) and the function thereof.
  • List the role players in the insurance industry and contrast the interrelationship between them.
  • Differentiate between binder and non-binder agreements.

    Associated Assessment Criteria for Exit Level Outcome 3:
  • Explain the reason for and use of "Reasonable man test".
  • Describe the essential elements of an insurance contract and the parties thereto.
  • Describe conflict of interest as it relates to an insurance contract and its parties.
  • Identify the related applicable legislation to the specific insurance product when underwriting.
  • Describe the legislative framework of the Insurance industry.
  • List compliance requirements of legislation and industry codes and explain the repercussion of non-compliance and conflict of interest.

    Associated Assessment Criteria for Exit Level Outcome 4:
  • Identify and explain Underwriting considerations/criteria.
  • Identify and compare benefits, exclusions and cover of similar products from different product suppliers in Short Term, Long Term and Medical, distinguishing between direct insurers, insurers and brokers in all three sectors.

    Integrated Assessment:
    An external integrated summative assessment, conducted through the relevant QCTO Assessment Quality Partner is required for the issuing of this qualification.

    The external integrated summative assessment will focus on the exit level outcomes and associated assessment criteria.

    The assessment model will identify competence against specified assessment standards, through a knowledge-based assessment and an occupational competency assessment. 

  • INTERNATIONAL COMPARABILITY 
    America:
    The Insurance Institute of America offers introductory courses in underwriting, which takes two years to complete, after which either the Associate in Commercial Underwriter (AU) or Associate Personal Insurance (API) is conferred, depending on the electives chosen. Both these streams, in a South African context, are short term and considered less complex than long term occupational requirements.

    The advanced designation is notably long term orientated as evidenced by the title; Chartered Life Underwriter (CLU), which claims to be the world's most respected designation and is underpinned by a curriculum that (while very long term biased), holds similarity to this qualification albeit at a more complex level. The curriculum includes fundamentals of insurance planning (which includes insurance concepts, risk management, legal principals and regulation) and Insurance law (which includes the basic principles of law of contract). The remainder of the curriculum is heavily long term biased including estate planning, investments and financial planning.

    It could therefore be concluded that this qualification is positioned at the nexus between the Associate and Chartered underwriter designations - due to the range of content and context and complexity of content.

    Australia:
    Although Australia has a strong financial services industry and no fewer than 11 full qualifications for the insurance industry, they revolve around brokering, life insurance and general insurance only. The certificates and diploma in general insurance hold certain similarities to this qualification in that skills of adjusting policies, participating in resolving complex claims, risk assessment and determining risk ratings are included. The scope of these general qualifications are however much wider and more generic than this qualification's specific content scope.

    England:
    Similarly, the UK has a strong tradition of insurance qualifications and is closely aligned to South Africa through the influence, most notably, of Lloyds of London. However, like the previous counties, underwriter training is covered by the more generic Certificate in Insurance (CII) and the Advanced Diploma of the Chartered Insurance Institute - the Associateship of the Chartered Insurance Institute (ACII), or in-house training as with Lloyds of London. These programmes are generic because they cover the range of fundamental insurance practices, brokering, claims and underwriting and also consequently cater for these diverse occupations as opposed to this qualification's specialised output of underwriter. The CII covers similar scope to this qualification in terms of Basic Insurance principles, which includes UK financial regulations, the key insurance disciplines of underwriting and claims and an introduction to the short term and medical core products.

    Further, the Chartered Insurance Institute has developed an Insurance Competency Framework which talks to role competencies rather than jobs and the specialist underwriter competency profile includes the areas of risk perception and assessment, pricing the risk, underwriter process and the underwriting management, all of which speak very closely to the areas of this qualification, risk management, rating and pricing risk, legal and insurance principles and compliant administration and document management.

    Articulation with the UK CII framework should therefore be possible and practicable.

    Canada:
    The Canadian Human Resource and Skills Development body has a National Occupational Classification (NOC) reference database which includes the classification 1313: Insurance Underwriter. The NOC indicates that completion of educational programmes through the Insurance Institute of Canada or its provincial counterparts, entitles insurance underwriters to professional recognition as Chartered Insurance Professionals (CIP).

    The CIP is underpinned by a number of programme offers, one of which is the Underwriter Professional Series, made up of three core courses; Underwriting essentials (which includes risk management, pricing risk and the underwriting environment) which seems very similar in scope and content to this qualification, Advanced underwriting (which includes loss adjusting and rating, international role players and retention and reinsurance), is at a more complex level and has a wider scope than this qualification offers and practical issues in underwriting management which extends the focus of underwriting risks to that of a book of business. Content is thus also wide of the scope of this analysis (including company organisation and planning, programme and product development and audits). 

    ARTICULATION OPTIONS 
    Learners with this qualification should be able to articulate vertically to aa Advanced Certificate or a Diploma at NQF Lev el 6 in any of the related areas, such as finance, selling, real estate, insurance.

    Vertically, they should be able to articulate with any other qualification at NQF Level 5 with cross-cutting credits in the Knowledge Specifications. 

    MODERATION OPTIONS 
    N/A 

    CRITERIA FOR THE REGISTRATION OF ASSESSORS 
    Accreditation of providers will be done against the criteria as reflected in the relevant curriculum on the QCTO website. 

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

    NOTES 
    In order to qualify for an external assessment, learners must provide proof of completion of all required modules by means of statements of results and work experience.

    Foundational learning competence is a recommendation for RPL access and subsequent awarding of this qualification.

    Part Qualifications:
    This qualification does not have any associated part qualifications. 

    LEARNING PROGRAMMES RECORDED AGAINST THIS QUALIFICATION: 
     
    NONE 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS QUALIFICATION: 
    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.
     
    NONE 



    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.