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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Negotiate terms on a facultative basis to achieve a competitive advantage 
SAQA US ID UNIT STANDARD TITLE
120001  Negotiate terms on a facultative basis to achieve a competitive advantage 
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 Long Term Underwriters, Reinsurers, Intermediaries and learners in pricing and tendering who are required to negotiate terms to accept risks that meet the different needs of different target markets. A person who is competent in this Unit Standard is able to make and justify an underwriting decision at a competitive rate that is equitable to the risk, profitable to the company and acceptable to the client.

The qualifying learner is capable of
  • Investigating the potential of a source of business.
  • Analysing a proposed product to negotiate a competitive advantage.
  • Describing the relationship between the parties in an underwriting negotiation.
  • Applying knowledge of the insurer to negotiate a facultative contract. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at NQF level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Terms are negotiated for a high risk.
  • Products of different insurers are compared in terms of benefits, rates, exclusions and conditions. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Investigate the potential of a source of business. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A profile of a client is compiled and validated from available sources of information. 

    ASSESSMENT CRITERION 2 
    The underwriting philosophy of the insurer/reinsurer is applied to determine the risk profile of the prospective client. 

    ASSESSMENT CRITERION 3 
    The profile of the intermediary is analysed in terms of own production and future business prospects. 

    ASSESSMENT CRITERION 4 
    A decision is made as to whether or not to pursue negotiations for competitive rates. 

    SPECIFIC OUTCOME 2 
    Analyse a proposed product to negotiate a competitive advantage. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Underwriting standards and business practice of the insurer/reinsurer are applied to the proposed policy to determine inherent risks. 

    ASSESSMENT CRITERION 2 
    The additional mortality and/or morbidity rate or terms quoted by another insurer/reinsurer are compared to own underwriting standards and a decision is made as to whether or not to offer a competitive rate. 

    ASSESSMENT CRITERION 3 
    The terms of the potential business are negotiated for two different scenarios. 

    ASSESSMENT CRITERION 4 
    A decision is issued in terms of the individual's current underwriting authority level. 

    SPECIFIC OUTCOME 3 
    Describe the relationship between the parties in an underwriting negotiation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The relationship between the insurer and reinsurer is ascertained from current treaties and the percentage of risk currently underwritten by the reinsurer. 

    ASSESSMENT CRITERION 2 
    The impact of interpersonal relationships with individual reinsurance underwriters is explained based on three case studies. 

    ASSESSMENT CRITERION 3 
    The service level provided by the reinsurer is evaluated based on the insurer's experience and agreed turn around times. 

    SPECIFIC OUTCOME 4 
    Apply knowledge of the insurer to negotiate a facultative contract. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The products offered by an insurer are analysed and compared to similar products of three other insurers. 

    ASSESSMENT CRITERION 2 
    The proposed product is analysed for compatibility with the organisation's electronic new business system. 

    ASSESSMENT CRITERION 3 
    The implications and consequences of a wrong decision are explained with reference to mortality, morbidity and the cost of the resulting claim. 

    ASSESSMENT CRITERION 4 
    Underwriting decisions are justified, recorded and stored according to an organisations specific underwriting procedures. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 

    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 able to Identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made negotiating a competitive rate for underwriting a high risk in Long-Term insurance. 

    UNIT STANDARD CCFO WORKING 
    Learners are able to work as a member of a team to ensure that risks that the company accepts meet the needs of proposed policy and protect the company from unfavourable claims experience. 

    UNIT STANDARD CCFO ORGANISING 
    Learners are able to organise themselves and their own activities effectively by managing workflow responsibly and effectively to ensure an efficient service and maximise productivity. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and critically evaluate information in analysing and evaluating the risk associated with a proposal in order to make an informed decision and underwrite a high risk at a competitive rate in long term insurance. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining, supporting and recording underwriting decisions. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems in recognising the implications and consequences of wrong underwriting decisions and their impact on the cost of resulting claims. 

    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  49834   National Certificate: Financial Services: Long-Term Risk Assessment  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  INSETA 
    Elective  49860   National Diploma: Financial Services: Long-Term Risk Assessment  Level 5  NQF Level 05  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. CKP Development Agency (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.