Higher Certificate in Short Term Insurance

Purpose

The purpose of this qualification is to equip students with the knowledge, skills and values required as a short-term insurance specialist. Learners will be competent to provide short-term insurance advice across the fields of personal and commercial insurance. The elective modules provide students with the opportunity to become experts in specialist areas of short-term insurance.

Learners successfully mastering the competencies in this qualification will be able to contribute to the broader society by providing sound advice to the public regarding short-term insurance.

The qualifying learner will be capable of

• Applying knowledge of legislation, compliance and ethics in a short-term insurance context in South Africa.
• Examining the nature of the short-term insurance environment in South Africa in terms of structure and role-players, regulation and consumer needs.
• Applying knowledge of legislation, risk management principles, reinsurance practices and underwriting principles to propose a short-term insurance solution to a client.
• Applying the principles of client relationship management in a compliant manner in the context of short-term insurance.

Rationale

With the introduction of the competency requirements in the Financial Advisory and Intermediary Services Act (FAIS Act) the landscape for the up-skilling of all insurance practitioners in South Africa changed dramatically. This qualification will address the full range of regulatory requirements set for short-term insurance practitioners by the Financial Services Board.

The typical learners attempting this qualification would migrate from the schooling system with the necessary admission requirements, and/or would already be active in the workplace. This qualification, due to its adherence to the requirements of the HEQF, will allow the learner access to further learning in the same or a related field.

This qualification is a combination of learning outcomes which have the defined purpose of capacitating the learner with workplace applicable competencies, and which will provide the learner with a solid foundation for any future learning endeavours in the financial planning field. This qualification achieves the objectives of the NQF.

It is assumed that the learner has the following knowledge and skills

• Communication at NQF Level 4.
• Mathematical Literacy at NQF Level 3.

Recognition of Prior Learning

The structure of this qualification makes the Recognition of Prior Learning possible. This qualification may therefore be achieved in part or completely through the Recognition of Prior Learning, which includes formal, informal and non-formal learning and work experience. Care will be taken that the mechanism used provides the learner with an opportunity to demonstrate competence and is not so onerous as to prevent learners from taking up the Recognition of Prior Learning option towards gaining a qualification.

If the learner is able to demonstrate competence in the knowledge, skills, values and attitudes implicit in this qualification the appropriate credits should be assigned to the learner. Recognition of Prior Learning will be done by means of Integrated Assessment.

Access to the Qualification

There is an open access to this qualification for learners who have

• Successfully completed the National Senior Certificate with the relevant admission requirements.

Or.

• Successfully completed the National Certificate: Vocational, NQF Level 4 with the relevant admission requirements.

To be awarded the qualification learners are required to obtain a minimum of 120 credits at NQF Level 5. The following rules of combination apply to this qualification:

Fundamental Component

The Fundamental Component of the qualification (40 Credits), which consists of the following learning modules, is compulsory:

• Legal Framework - 25 Credits.
• Risk Management - 15 Credits.

Core Component

The Core Component of the qualification (50 Credits), which consists of the following learning modules, is compulsory

• Personal Lines Insurance - 25 Credits.
• Commercial lines insurance - 25 Credits.

Elective Component

In the Elective Component the learner is to select two of the following learning modules to the value of 30 Credits

• Reinsurance - 15 Credits.
• Marine and Aviation Insurance - 15 Credits.
• Construction and Engineering Insurance - 15 Credits.
• Business Management - 15 Credits.

1. Apply knowledge of legislation, compliance and ethics in a short-term insurance context in South Africa.
2. Examine the nature of the short-term insurance environment in South Africa in terms of structure and role-players, regulation and consumer needs.
3. Apply knowledge of legislation, risk management principles, reinsurance practices and underwriting principles to propose a short-term insurance solution to a client.
4. Apply the principles of client relationship management in a compliant manner in the context of short-term insurance.

Critical Cross-Field Outcomes

Qualifying learners will be required to demonstrate competence in the following Critical Cross-Field Outcomes

• Identify, systematically examine, critically evaluates and solves problems in which responses display that responsible decisions have been made, using critical and creative thinking.
• Organise and manage oneself and one's activities responsibly and effectively.
• Collect, analyse, organises and critically evaluates information.
• Demonstrate an understanding of the world as a set of related systems by recognising that problem solving contexts do not exist in isolation.
• Self manage skills development from the range of experiences and learning opportunities available.
• Transfer skills and continuous learning to organisational setting.

Associated Assessment Criteria for Exit Level Outcome 1

1.1 Legislation that impacts on the practice of short-term insurance in South Africa is analysed to determine the impact and scope of its application to personal and commercial short-term insurance.

1.2 The requirements of the Codes of Conduct of FAIS are integrated into the business of determining risk in a short-term insurance context.

1.3 Own operations are managed within the parameters set by compliance and legislation.

1.4 The relationship between ethics and compliance legislation is examined against the background of client interaction, responsible business practice and contribution to an ethical business environment in South Africa.

Associated Assessment Criteria for Exit Level Outcome 2

2.1 The role-players in the industry are identified and categorised and the relationship amongst them is explained.

2.2 The challenges and opportunities in the business environment in South Africa are identified and ways of addressing these in a short-term insurance context are proposed.

Associated Assessment Criteria for Exit Level Outcome 3

3.1 Technical knowledge is applied to advise a client on risk exposure.

3.2 The risk identified is analysed in order to formulate a risk management solution.

3.3 Knowledge of classes of short-term insurance and products is applied to select suitable solutions.

3.4 Underwriting criteria of a selected product are analysed in order to propose an insurance solution.

3.5 The need for reinsurance is analysed and a solution for reinsurance is sought.

Associated Assessment Criteria for Exit Level Outcome 4

4.1 All relevant information is gathered in order to identify client needs.

4.2 Solutions are recommended to clients based on their needs as identified and the terms and conditions are explained to clients in order to allow them to make informed decisions.

4.3 The annual renewal process is conducted in order to ensure that the client needs remain appropriately covered.

Integrated Assessment

Integrated Assessment will be applied extensively across the modules of learning, particularly in the case studies. Summative assessment is integrated into the learning in that it takes place at the end of each of the constituent modules of the programme. Self and formative assessment takes place through case studies and assignments, including the writing of proposals and financial plans.