Higher Certificate in Short-term Insurance

Purpose

The purpose of the Higher Certificate in Short-term Insurance is to equip learners with the knowledge, skills, attitudes and values that are required to operate ethically and responsibly in the highly regulated financial services industry. The qualification aims to build on the knowledge and skills required by employees in short-term insurance who have achieved an NQF 4 Qualification and to enable learners to progress to a further qualification. The focus of this qualification is on information gathering, analysis, evaluation, presentation, and the ability to apply knowledge of short-term insurance to solve problems within a familiar context.

Learners will be able to identify a client's needs through a comprehensive risk analysis process and who are capable of developing a risk management plan that will assist the client to mitigate, avoid or manage the identified insurance risks.

Rationale

The demand for more Service Providers to offer this qualification was identified by the Insurance Institute of South Africa (IISA) who approached the institution in this regard. Opinion research conducted by the institution and the IISA among its target market revealed that there is sufficient need within the South African context for a qualification of this nature.

The curriculum has been structured in line with the requirements of IISA's professional designations. Learners who complete the Higher Certificate in Short Term Insurance, and who also meet the experience requirements may apply for the designation of IISA: Licentiateship (LIISA).

The qualification will meet the needs of matriculants wanting to enter the Short-term insurance industry and existing employees practicing in the Short-term insurance industry who are required to obtain a qualification in Short-term insurance to comply, as required, with the Financial Advisory and Intermediary Services Act (FAIS) (Act 37 of 2002), or to upskill themselves. The qualification is aimed at Short-term insurance underwriters, representatives and employees wanting to obtain an IISA professional designation. The qualification is sufficiently flexible to accommodate learners already employed in the Short-Term Insurance sector.

The skills, knowledge, values, and attitudes acquired while completing this qualification can serve as building blocks for advancement in the short-term insurance arena or further graduate studies. The qualification aims to develop informed and skilled qualifying learners and can contribute to the learner's employability and marketability in the formal, financial services sector thereby contributing to the economic and social up-skilling of the South African workforce.

Since the financial services and banking industries are highly specialised, they demand a strong work ethic with the specific knowledge, skills and qualities provided by this qualification.

Recognition of Prior Learning (RPL)

The institution will use RPL to provide access to a limited number of learners who do not meet the access requirements for the qualification. Evidence can be presented in a variety of forms including international or previous local qualifications, reports, testimonials mentioning functions performed, work records, portfolios of evidence, and performance records. Such evidence will be judged according to the general principles of assessment aligned to the NQF RPL policy and, where deemed necessary, learners may also be required to complete a contextualised mathematical literacy bridging qualification for financial planning, before they may be admitted to the qualification.

Entry Requirements

The minimum entry requirement for this qualification is

• National Senior Certificate, NQF Level 4 granting access to higher certificate studies

Or

• Senior Certificate, NQF Level 4 granting access to higher certificate studies

Or

• National Certificate (Vocational), NQF Level 4 granting access to higher certificate studies

This qualification consists of the following compulsory modules at National Qualifications Framework Level 5 totalling 120 Credits.

Compulsory Modules, Level 5, 120 Credits

• Fundamentals of Insurance, 20 Credits.
• Risk Management, 20 Credits.
• Legal Framework, 20 Credits.
• Personal Insurance, 20 Credits.
• Commercial Insurance, 20 Credits.
• Claims Management and Underwriting, 20 Credits.

1. Demonstrate an understanding of the insurance industry, its history, the types of insurance available, and the influence of economics and behavioural finance on short-term insurance.
2. Select and apply the appropriate Risk Management Strategy to a Short-term Insurance client scenario.
3. Apply legislation, codes of conduct, and business ethics to the various stakeholders in the short-term insurance industry.
4. Demonstrate an understanding of the legal requirements for a valid contract and the implications of contract wording in the Short-term insurance industry.
5. Demonstrate an understanding of principles underlying Short Term Insurance: Personal Lines and reinsurance and the different products and services.
6. Manage client relationships including maximising client retention in the Short-term insurance environment.
7. Demonstrate an understanding of principles underlying Short Term insurance: Commercial Lines and the different products and services.
8. Demonstrate an understanding of the claim's management and underwriting processes, and pricing applicable to Short Term Insurance.

The following Associated Assessment Criteria will be applied in an integrated manner across the Exit Level Outcomes.

• Describe the history of insurance.
• Identify the main role-players and market participants in the short-term insurance industry and explain their roles.
• Explain the concept of reinsurance and its application in the short-term insurance industry.
• Discuss the basics of economics and its influence on short-term insurance.
• Discuss behavioural finance and its effect on short-term insurance.
• Define, classify and identify risks.
• Evaluate risks in the short-term insurance industry.
• Describe the risk management process.
• Analyse a client scenario and recommend the appropriate short-term insurance solution to address the client's identified risks.
• Discuss the legal and regulatory framework governing the short-term insurance industry, and the various role-players.
• Explain the legal requirements in terms of Binder Agreements.
• Explain the legal requirements for a valid short-term insurance contract and the legal capacity of contracting parties.
• Explain the principles applicable to the law of delict as it applies to short-term insurance.
• Discuss short-term: personal lines insurance principles.
• Define different types of personal risk.
• Discuss the different types of personal insurance policies and associated services.
• Explain the application of reinsurance and the implication of contract wordings as well as the reinsurance treaties.
• Discuss the importance of client relationship management in short-term insurance.
• Define different types of commercial risk.
• Discuss the commercial short-term insurance policies and associated services.
• Discuss the scope, coverage, and limits of Short-term: Commercial lines insurance contract wording.
• Explain the relationship between the COID Act and stated benefits insurance.
• Define short-term insurance claims.
• Discuss the short-term insurance claims process and the related procedures, systems, and documentation.
• Define underwriting in the short-term insurance industry.
• Discuss the underwriting process, procedures, and documents required for Personal Lines and Commercial Lines Insurance policies.
• Discuss mid-term policy amendments, the processes, and procedures required for short-term insurance policies.
• Calculate and compare the cover provided by the different types of commercial short-term insurance policies.