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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Analyse a facultative arrangement in order to comment on its appropriateness to a specific organisation's underwriting framework 
SAQA US ID UNIT STANDARD TITLE
120004  Analyse a facultative arrangement in order to comment on its appropriateness to a specific organisation's underwriting framework 
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 
A facultative arrangement refers to a facultative placement slip in Group Benefits or a facultative treaty in Life Insurance. This Unit Standard is intended for Senior Underwriters in Long-Term insurance, learners in actuarial learnerships and learners responsible for quoting on group business (tendering and pricing) who provide input into new facultative arrangements, the review of existing arrangements or the arrangement of reinsurance for a specific case. It provides learners with the skills and knowledge needed to make a business decision within an organisation's underwriting framework.

The qualifying learner is capable of:
  • Analysing the wider environment in which a facultative arrangement will operate.
  • Analysing the limitations on a specific product line.
  • Analysing a proposed facultative arrangement in order to select the arrangement with the best terms within an organisation's underwriting framework.
  • Providing input to inform a decision about a facultative arrangement. 

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

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Factors that could impact on an organisation include, but are not limited to, the Financial Services Charter, Employment Equity Legislation and Licensing requirements.
  • More favourable conditions include, but are not limited to costs and loadings.
  • Input may be verbal or written.
  • Presentations to decision makers may be to an actual or simulated group. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Gather information from a customer data base in order to make a recommendation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Credit ratings of reinsurers are investigated and an indication is given of the implications and consequences of placing business with a specific reinsurer. 

    ASSESSMENT CRITERION 2 
    The impact of a facultative arrangement on existing profit share arrangements with a reinsurer is investigated and explained for a specific business relationship. 

    ASSESSMENT CRITERION 3 
    The business environment within which an organisation operates is analysed and an indication is given of factors that could impact on a specific organisation. 

    SPECIFIC OUTCOME 2 
    Analyse the limitations on a specific product line. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Limitations on a specific product line are analysed with reference to liability and risk maxima and an organisation's stated underwriting policy. 

    ASSESSMENT CRITERION 2 
    Relevant LOA guidelines and codes of good practice are explained with reference to a specific product. 

    SPECIFIC OUTCOME 3 
    Analyse proposed facultative arrangements in order to select the arrangement with the best terms within an organisation's underwriting framework. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A reasonability check is conducted on a reinsurance proposal. 

    ASSESSMENT CRITERION 2 
    Knowledge of product limitations is applied to proposals from reinsurers to determine the relevance of each proposal. 

    ASSESSMENT CRITERION 3 
    Adjustments to a reinsurers proposed facultative arrangements are negotiated to achieve more favourable terms and conditions. 

    ASSESSMENT CRITERION 4 
    A decision is made on the selection of the most appropriate reinsurance proposal within the learner's mandate. 

    SPECIFIC OUTCOME 4 
    Provide input to inform a decision about a facultative arrangement. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The selection of a reinsurance proposal is presented, motivated and defended to the relevant decision makers in an organisation. 

    ASSESSMENT CRITERION 2 
    The merits of different presentations are discussed to inform a final decision. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    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 able to identify problems, contribute to decisions and recommendations and give feedback on matters relating to the selection of a reinsurance proposal for a facultative arrangement. 

    UNIT STANDARD CCFO WORKING 
    The learner is able to work effectively as a member of a team participating in a meeting to contribute to a decision. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able organise his/her activities responsibly and effectively analysing proposals from reinsurers and preparing a case to inform a decision. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able critically evaluate information in analysing proposals from reinsurers for facultative arrangements. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able communicate effectively in using verbal and non verbal communication skills in presenting, motivating and defending the selection of a specific facultative proposal. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able using a computer effectively to retrieve and present information from a customer data base and to investigate credit ratings. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to see the world as a set of related systems in analysing the wider environment in which an organisation operates and indicating the implications and consequences of placing business with a specific reinsurer. 

    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.