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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Demonstrate knowledge and understanding of reinsurance at a basic level in long term insurance 
SAQA US ID UNIT STANDARD TITLE
14432  Demonstrate knowledge and understanding of reinsurance at a basic level in long term insurance 
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 4  NQF Level 04  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2004-12-02  2007-12-02  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-12-02   2011-12-02  

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 introduces the concept of reinsurance in long term insurance.

The qualifying learner is capable of:
  • Describing the different types of reinsurance used in long term insurance.
  • Explaining Treaty reinsurance.
  • Explaining Facultative reinsurance
  • Applying medical knowledge to assess additional risk.
  • Explaining the role of reinsurance in underwriting different long term products and benefits marketed in South Africa. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in Communication and Mathematical Literacy at Level 3 and the unit standards Underwrite a standard risk in long term insurance: level 4 and Analyse the different products available in the long term insurance industry and the benefits of each. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • Reasons to shop for reinsurance include sick, big, specialised/sub-standard risk.
  • Reinsurance arrangements include risk premium, co-insurance, facultative oblique, quota/share and surplus. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Describe the different types of reinsurance used in Long Term insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Reasons why a direct long term insurer would shop for reinsurance are explained with authentic examples. 

    ASSESSMENT CRITERION 2 
    2. The different types of reinsurance are named and an indication is given of the basic differences between the two. 

    ASSESSMENT CRITERION 3 
    3. The advantages and disadvantages of Treaty and Facultative reinsurance are explained with reference to cost. 

    ASSESSMENT CRITERION 4 
    4. The additional services offered by three different reinsurers are researched and an indication is given of which reinsurer appears to offer the most beneficial services to a specific organisation for facultative claims. 

    SPECIFIC OUTCOME 2 
    Explain Facultative reinsurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The reasons why facultative reinsurance is more expensive than treaty reinsurance is explained in terms of the administration of the process. 

    ASSESSMENT CRITERION 2 
    2. The concepts of co-insurance and risk premium arrangements are explained and an indication is given of when each is appropriate. 

    SPECIFIC OUTCOME 3 
    Apply medical knowledge to assess the additional risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The sixteen impairment groups are named and information is accessed in the underwriting guide to interpret the risk and make an underwriting decision. 

    ASSESSMENT CRITERION 2 
    2. An accurate synopsis of five case studies is presented for a medical practitioner in sufficient detail for him/her to make a decision. 

    ASSESSMENT CRITERION 3 
    3. The medical decision of a practitioner is interpreted against a specific product and within the learner's underwriting limit. 

    ASSESSMENT CRITERION 4 
    4. The risk associated with a specific impairment is explained in terms of morbidity and mortality. 

    ASSESSMENT CRITERION 5 
    5. The rating manual is used to assist in determining risk for five case studies and severity is determined in terms of mortality and morbidity. 

    SPECIFIC OUTCOME 4 
    Explain the role of reinsurance. 
    OUTCOME NOTES 
    Explain the role of reinsurance in underwriting different long term products and benefits marketed in South Africa. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The underwriting approaches applied to different generic long term products are explained and an indication is given of how the ratings are determined for each product. 

    ASSESSMENT CRITERION 2 
    2. The different rules, medical conditions and policy conditions that apply to reinsurance in four foreign countries are identified and an indication is given of where information for each country can be sourced if the risk is underwritten in South Africa. 


    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. 


    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 in making a reinsurance decision. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and critically evaluate information needed to reinsure a risk. 

    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 calculating the amount to be reinsured and explaining the role of reinsurance. 

    UNIT STANDARD CCFO SCIENCE 
    Learners are able to use science and technology effectively and critically showing responsibility towards the environment and the health of others in accessing information to reinsure a risk. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation by understanding the reasons for reinsurance. 

    UNIT STANDARD NOTES 
    Practical work experience:
    Before being credited with this unit standard learners are required to have a minimum of 30 hours experience in long term reinsurance underwriting. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2007-02-11  Was INSETA until Last Date for Achievement 
    Elective  20774   National Certificate: Insurance: Long Term: Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  Was INSETA until Last Date for Achievement 


    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.
     
    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.