National Certificate in Insurance Administration. NQF Level 3

Transcription

1 Working together for a skilled tomorrow National Certificate in Insurance Administration NQF Level 3 Unit Standard 8987: Indicate how different needs lead to the development of different insurance products. Credits: 4 Notional Hours of Learning: 40 Learner Material This outcomes-based learning material was developed by IISA with funding from INSETA in March The material is generic in nature. It s purpose is to serve as a guide for the further development and customization of company-specific, learner-specific and situation-specific learning interventions.

2 Page 2 Contents Topic Page Unit Standard Instructions...7 Process...8 Examples: Oral Assessment...11 Guide for Assessment...12 Trainer Guidelines...13 Annexures...14

3 Page 3 1. TITLE: Indicate how different needs lead to the development of different insurance products. 2. UNIT STANDARD NUMBER: LEVEL ON NQF: 3 4. CREDITS: 4 5. FIELD: Business, Commerce and Management Studies SUB FIELD: Finance, Economics and Accounting 6. ISSUE DATE: 7. REVIEW DATE: 8. PURPOSE: This unit standard deals with the background needed to deepen understanding of the people who make up the insurance market in South Africa. It allows for the collection, presentation and interpretation of data that provides insight into the industry. The qualifying learner is capable of Collecting, presenting and interpreting data. Comparing the different insurance markets and insurance and investment products in South Africa. Matching the needs of potential customers to insurance products. Planning an advocacy campaign for potential new customers. Planning questions to obtain information. Using graphic techniques to represent information. 9. LEARNING ASSUMED TO BE IN PLACE: There is open access to this unit standard. Learners should competent in Communication and Mathematical Literacy at NQF Level 2. Learners should know how to conduct a simple survey. 10. SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA: SO Description Assessment Criteria 1. Survey opinions on the need of insurance in two different communities 1.1 The insurance needs of two different communities are compared in terms of their lifestyle, needs, buying power and value systems. 1.2 The reasons why people would/would not choose an insurance investment are explored by means of a survey. 1.3 Existing insurance products offered by various providers are listed and compared to the community needs identified in the survey. 1.4 A gap analysis is conducted to identify where the existing products do not meet the consumer needs for the communities surveyed. 1.5 The information obtained from the survey is represented graphically.

4 Page 4 2. Compare the different insurance and investment markets in South Africa for short term, long term and healthcare benefits administration. 3. Match the needs of potential consumers with available products 4. Interpret statistical information to determine the type of insurance or investment most valued by the communities. 2.1 The different insurance and investment markets are classified and compared and reasons for the differences between the markets are given with reference to the historical and cultural situation in South Africa. 2.2 The potential for marketing the different insurance and investment products is explored in terms of the nature of services needed by the different market sectors. 2.3 The effects of a particular event on a person are compared for a scenario with or without insurance or investment. 2.4 Actions that constitute fraud and non-declaration are indicated and measures that are taken to reduce fraud are explained with reference to a selected sub-sector. 2.5 Existing avenues of insurance and investment for consumers in lower income groups are investigated and possibilities for investment are presented in a poster. 3.1 Data from the survey of the two communities is used to group people according to their insurance and investment requirements. The wants and needs of people are compared for different groups in terms of age, income, commitments and priorities. 3.2 The different products and services available in the industry are named and an indication is given of the profile of consumers most likely to invest in the products indicated. 3.3 Two similar products offered by two selected insurance or investment companies are named and a decision is made as to which of the products offers the best value for money in the learner s opinion and circumstances. 3.4 Suggestions are made for new products that combine or offer different combinations of insurance or investments or meet different needs of potential new customers. 3.5 A plan is presented for an awareness or advocacy campaign to introduce the idea of insurance or investment to potential new customers. 4.1 Different interpretations that could be given to the data from own and other s surveys are considered and compared in terms of the most valued types of insurance and investment. 4.2 The survey data is interpreted and possible reasons are suggested for trends indicated in the data. 4.3 The type of insurance or investment most valued by different communities is compared from published statistics at different periods over the past 10 years. 4.4 Published data is interpreted and possible social, political and environmental reasons are suggested for trends in the data. 4.5 Implications of the trends in different communities are indicated for the insurance or investment industry. 11. ACCREDITATION AND MODERATION:

5 Page 5 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. 12. RANGE STATEMENT: The typical scope of this unit standard is 1. A survey of a sample of 20 people from two different communities. 2. Formulation of a questionnaire to establish why people would/not purchase insurance. 3. Graphic presentation in a bar graph or pie chart. 4. Classification of investment markets: individual, groups, corporate, unions. 5. Decision making/selection of a product according to own needs. 6. Particular events include loss, e.g. burglary, death, legal disability; change in health status e. g. onset of dread disease; change in life status e.g. birth, adoption of a child, marriage, divorce, retrenchment, retirement. 7. Products refer to Endowment, Retirement Annuity, Life Policy, Healthcare Cover, Unit Trusts, Funeral, Short Term Risk and multi-class type policies. 8. Published data accessed from Annual Reports, Statistics SA, HSRC and newspapersshort term, long term and healthcare benefits administration 13. NOTES: CRITICAL CROSS-FIELD and DEVELOPMENTAL OUTCOMES: This unit standard supports in particular, the following critical cross field outcomes at unit standard level: 1. Learners can identify and solve problems by interpreting the data collected from their own surveys and by making decisions regarding products affording the best value for money. 2. A learner is able to collect, organise and evaluate information when interpreting the statistical information accumulated during the interviews with his/her sample group. 3. A learner is able to organise and manage his/her activities responsibly and effectively when developing a questionnaire and scheduling interviews for Specific Outcome A learner is able to communicate effectively using visual, mathematics and language skills when interviewing a sample of the community and presenting the findings graphically and visually. 5. A learner is able to act as a responsible citizen in the organisation and his/her community by identifying what constitutes fraud and by indicating or suggesting what measures could be used to reduce fraud. 6. Learners can demonstrate cultural sensitivity by understanding individual preferences most valued by different communities in terms of their insurance or investment needs. 7. A learner is able to identify entrepreneurial opportunities by exploring the potential for marketing insurance and investment products, and by planning an awareness campaign to introduce the concept of insurance and investment to new customers.

6 Page 6 INSTRUCTIONS This task is expected to take you about 12 weeks to complete and will require 40 hours of reading, research and response by you Your notes, summaries, written feedback, and transcribed oral feedback (where applicable) must be collected and stored in a portfolio. The portfolio can be a flip file, scrapbook or exercise book. Each article / notes or summary should be neatly pasted, dated and headed Specific Outcome 1,2,3, or 4 depending on what aspect it covers. Your portfolio will be assessed at the end of the twelve-week period. During the twelve weeks, you should have regular contact and discussion sessions with your trainer / facilitator. During these sessions the progress of your portfolio will be checked. Should you live in a rural / distant area, your contact session can be telephonic / via fax or via . At these contact sessions you will be asked to comment on some of the articles you selected and this oral input will form part of your assessment for this unit standard. After three months you will also need to fill in a questionnaire as part of the assessment of this unit standard.

7 Page 7 ACTIVITIES Number Aspect of task Done Specific Outcome 1: Survey opinions on the need for insurance in two different communities Action 1 Do PERSONAL RESEARCH to obtain information regarding the need for insurance in two different communities of your choice. Once you have this information, write down (or type) on a piece of paper the answers to the following questions (the answers to the questions below need not be longer than a paragraph each): Compare the insurance needs of two different communities in terms of their lifestyle, needs, buying power and value systems. Explore by means of a survey the reasons why people would/would not choose an insurance investment. List existing insurance products offered by various providers and compare these to the community needs identified in the survey. Conduct a gap analysis to identify where the existing products do not meet the consumer needs for the communities surveyed. Graphically represent the information obtained from the survey. Once you have answered these questions, paste the answers into your portfolio of evidence, and number them clearly : Specific Outcome 1, Number 1 Specific Outcome 1: Compare the different insurance and investment markets in South Africa for short term, long term and healthcare benefits administration Action 2 Specific Outcome 1: Match the needs of potential consumers with available products. Action 3 Do PERSONAL RESEARCH to obtain information regarding the different insurance and investment markets in South Africa. Once you have this information, write down (or type) on a piece of paper the answers to the following questions (the answers to the questions below need not be longer than a paragraph each): Classify, compare and give reasons for differences in the different insurance and investment markets with reference to the historical and cultural situation in South Africa. Explore the potential for marketing the different insurance and investment products in terms of the nature of services needed by the different market sectors. Compare the effects of a particular event on a person for a scenario with or without insurance or investment. Indicate actions that constitute fraud and non-declaration and expand on measures that are taken to reduce fraud with reference to a selected sub-sector. Investigate existing avenues of insurance and investment for consumers in lower income groups and present possibilities for investment in a poster. Once you have answered these questions, paste the answers into your portfolio of evidence, and number them clearly : Specific Outcome 1, Number 2 Do PERSONAL RESEARCH to obtain information regarding the match between available products and the needs of potential consumers. Once you have this information, write down (or type) on a piece of paper the answers to the following questions (the answers to the questions below need not be longer than a paragraph each): Use data from the survey of the two communities to group people according to their insurance and investment

8 Page 8 Number Aspect of task Done requirements. Compare the wants and needs of people for different groups in terms of age, income, commitments and priorities. Name the different products and services available in the industry and indicate the profile of consumers most likely to invest in the products indicated Name two similar products offered by two selected insurance or investment companies and decide (in your opinion and circumstances) which of the products offers the best value for money. Make suggestions for new products that combine or offer different combinations of insurance or investments or meet different needs of potential new customers. Present a plan for an awareness or advocacy campaign to introduce the idea of insurance or investment to potential new customers. Once you answered these questions, paste the answers into your portfolio of evidence, and number them clearly : Specific Outcome 1, Number 3 Specific Outcome 1: Interpret statistical information to determine the type of insurance or investment most valued by the two communities Action 4 Do PERSONAL RESEARCH to obtain information regarding the type of insurance or investment most valued by the two communities of your choice. Once you have this information, write down (or type) on a piece of paper the answers to the following questions (the answers to the questions below need not be longer than a paragraph each): Consider and compare different interpretations that could be given to the data from own and other s surveys in terms of the most valued types of insurance and investment. Interpret the survey data and suggest possible reasons for trends indicated in the data. Compare from published statistics at different periods over the past 10 years the type of insurance or investment most valued by different communities. Interpret published data and suggest possible social, political and environmental reasons for trends in the data. Indicate implications of the trends in different communities for the insurance or investment industry. Once you answered these questions, paste the answers into your portfolio of evidence, and number them clearly : Specific Outcome 1, Number 4

9 Page 9 GUIDE FOR ASSESSMENT OF PORTFOLIOS Assessment Criteria SPECIFIC OUTCOME 1 Survey opinions on the need for insurance in two different communities. Learner is competent The questions concerning opinions on the needs of insurance are answered correctly The answers are pasted into the portfolio of evidence Learner is not yet competent All or part of each activity not done or incomplete NOT done or all questions not answered SPECIFIC OUTCOME 2 Compare the different insurance and investment markets in South Africa for short term, long term and healthcare benefits administration. The questions concerning investment markets in SA are answered correctly The answers are pasted into the portfolio of evidence SPECIFIC OUTCOME 3 Match the needs of potential consumers with available products The questions concerning matching of needs to available products are answered correctly. The answers are pasted into the portfolio of evidence SPECIFIC OUTCOME 4 Interpret statistical information to determine the type of insurance or investment most valued by the two communities. The questions regarding the interpretation of statistical information are answered correctly.

10 Page 10 CRITICAL CROSSFIELD OUTCOMES MATRIX FOR ACTIVITIES RELATED TO UNIT STANDARD Demonstrate knowledge and understanding of how different needs lead to the development of different insurance products. Activity Solve problems / Make Decisions Teamwork Organisation Information Communicate Technology Related Systems Personal Development

11 Page 11 ORAL ASSESSMENT The trainer will use this table to monitor your participation during the discussions at your contact sessions. You are expected to contribute during each of the contact sessions. Action Yes No The learner brought summaries and notes made to the session for discussion. The learner makes notes during the discussion, where notes are required to be transcribed. The learner demonstrates his / her knowledge and understanding by being able to: Collect, present and interpret data. Compare the different insurance markets and insurance and investment products in South Africa. Match the needs of potential customers to insurance products. Plan an advocacy campaign for potential new customers. Plan questions to obtain information. Use graphic techniques to represent information. The learner can take part in group discussions by talking about other learner s feedback and reports. LIFELONG LEARNING This module has introduced you to how different needs lead to the development of different insurance products. It is important to understand this module, since you will have to consider how different needs lead to the development of different insurance products when offering such products to clients.

12 Page 12 ADDITIONAL NOTES Facilitators Notes. The specific objectives of this programme are: The qualifying learner must be able to: 1. Explain and go through the unit standard with the learners so that they can understand fully what is expected of them 2. Provide articles or other information relating to the history of the Financial Services industry in South Africa. 3. Hand out some articles you have sourced to the learners, so that they can see that it is not so difficult to find information 4. Advise learners of the importance to keep their portfolio of evidence intact and complete. 5. Advise learners that oral / written feedback will be conducted during the contact sessions, which will form part of their formative assessment. 6. Explain to learners what Formative and Summative assessments are and the relevant ratio. 7. Hand out to learners: A schedule of contact lessons, i.e. dates and times A copy of the list of terms. Explain the terms very clearly. The table used for oral assessment (part of portfolio) Annexure A. The guide used for assessment of the portfolio (learners must submit it for completion at each contact session) Annexure B. 8. Other resources that may come in handy in the learner s research 9. Internet provide copies of articles if used 10. Marketing material, company intranet, actuarial department, Human Resources department 11. Tell the learners that after three months they will be required to complete a questionnaire as part of the assessment of this unit standard. Tell them of the duration of this summative assessment and come to an agreement with the learners on where and when the assessments will take place. The content of the questionnaire must include the Critical Cross-field outcomes Note to trainers: 1. You can give the learners articles or notes to assist them During the discussions you can adapt the content of the text material to suit your company needs and products. Use the company as a provider example to provide the learner with knowledge and understanding of the role. Each learner should the be able to answer the following question: How well do I understand how different needs lead to the development of different insurance products? The learner s research and learning during this course will equip the learner with the knowledge and skills to empower them to understand how different needs lead to the development of different insurance products. 2. EXPLANATION OF TASK The following terms must be clearly explained to the learners when they are given the portfolio task. It would be advisable to provide them with a copy of these terms to which they can refer when necessary. This is not an exhaustive list of terms and you should add to this list as you come across words you don t understand Term Assets Claim Acceptance Cover Disclosure Explanation Property and possessions that are regarded as having value. An application for compensation under the terms of an insurance contract. A willingness to accept the terms and conditions of a contract/circumstance etc. Funds used in insurance to meet a liability or to protect against loss. Revealing all the facts relevant to the insurance proposal. If either party

13 Page 13 Good faith Disclosure Liability Liabilities Offer Insurable Interest Interest Exclusions Policy Premium Risk Proposal Subject matter Portfolio fails to do this, the contract may be declared invalid. When both the insurer and the insured provide all the relevant facts and do not try to hide anything. The act of telling the truth about the risk that is to be covered. Responsibility for debt or financial obligations. When used in the financial sense, the word liabilities refers to the money that you owe or your debts. A proposal of business, a plan for insurance for example. The legally recognised relationship between the insured and the financial loss that s/he suffers following a loss. This must exist for an insurance contract to be considered valid. The money paid for the use of money that has been lent. When you deposit money in the bank, the bank will pay you interest on your deposit. Similarly, when you borrow money from the bank through a credit card or home loan, you have to pay the bank interest on the money that the bank lent you. Situations under which insurance cover is no longer valid. For example exclusion on a household might be that the insurer would not meet your claim if you went away for two weeks, leaving the alarm off and a door open, and then you were burgled. A contract of insurance An amount to be paid for a policy of insurance. This is usually paid on a monthly basis. Either the possibility of a loss against which insurance is taken out, or the item that is being insured. A document which suggests the terms and conditions of an insurance contract. The items to be insured in an insurance contract. A collection of work, which in this instance, will be compiled over six months, regularly monitored and which will contain information from the media and analysis by the learner. Long term insurance Contact sessions Retirement fund Trustees Claim Tax deduction Equal Preserving Deduct Contributions Withdrawal Ready to exit fund Elected Fund managers Literacy Written request Query Insurance such as life, retirement funding, etc. where the client places a value on the person insured. These are times when learners meet with the trainer as a group. Contact session should be held at least once a month. At the contact session, portfolios will be checked and learners will participate in discussion about items they have found. A special type of savings fund that companies set up with their workers, to help them save money for retirement or illness. People who are chosen to represent the employees. Employees trust them to do a good job and to look after the retirement fund. To ask for something, to say that something belongs to you. An amount of money that a person does not have to pay income tax on. All are the same To preserve something is the same as saving something. Means to take or withdraw. Your company deducts money from your salary. This means that your company takes money from your salary each month. What the company gives to the fund. Take some or all of the money out of fund. To go on retirement Chosen people who vote for them Experts who look after the fund or its investments. Able to read well To write down instead of asking orally Means to ask questions about something.

14 Page 14 It is important when explaining the task that the assessment tools for both the oral participation and completed portfolio are given to the learners. They will be able to use these tools to assess their progress. Emphasize that the portfolio must contain articles, notes and summaries covering the twelveweek period and that the portfolios will be monitored at each contact session. 3.CONTROL At each contact session spend a few minutes reviewing the items, notes and summaries that each learner has brought. Assess whether the learner is able to demonstrate knowledge and understanding of: Collecting, presenting and interpreting data. Comparing the different insurance markets and insurance and investment products in South Africa. Matching the needs of potential customers to insurance products. Planning an advocacy campaign for potential new customers. Planning questions to obtain information. Using graphic techniques to represent information. This is the important aspect of the task and learners may require help in making these links at first. Record the date of the contact session and a brief comment on the state of the portfolio at the back of the document: This will make the learner aware of the progress that has been made or corrective steps that need to be taken 4. ASSESSMENT This task involves two types of assessment: formative, continuous assessment of oral participation and research from the retirement fund booklet and various resources within the company, and summative assessment of the portfolio. Assess each learner s participation in the oral discussion at each contact session by filling in the table provided. The learner should be shown his / her assessment so that they know what they need to improve at the next contact session. After a careful review of the completed portfolio, it can be assessed by completing the table in Annexure B. This table indicates to the learner which of the specific outcomes has been met by assessing the work submitted against the assessment criteria in the guide they were given. If the outcome has not been met, the trainer should indicate what steps should be taken by the learner to meet the criteria. These comments can be made in the learner is not yet competent block next to the relevant specific outcome.

15 Page 15 Annexure A Learner Name Learner Number Unit Standard : : : Oral Assessment Action Yes No The learner has brought a variety of articles / summaries and a draft copy of workplace guidelines to the session The learner is able to discuss topics researched and explains he relationship to the insurance industry The learner is able to participate in a discussion about other learner s articles The learner displays a general knowledge of events and circumstances that are not necessarily covered in the articles brought to the contact session Date : Signature :

16 Page 16 Annexure B Learner Name Learner Number Unit Standard : : : Rubric for Assessment of portfolio Assessment Criteria Learner is competent Learner is not yet competent Specific Outcome 1: Survey opinions on the need for insurance in two different communities. Specific Outcome 2: Compare the different insurance and investment markets in South Africa for short term, long term and healthcare benefits administration. Specific Outcome 3: Match the needs of potential consumers with available products. Specific Outcome 4: Interpret statistical information to determine the type of insurance or investment most valued by the two communities. Date : Signature :