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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Analyse the Financial Services industry and the role of insurance in a business environment

SAQA US ID	UNIT STANDARD TITLE
12168	Analyse the Financial Services industry and the role of insurance in a business environment
ORIGINATOR
SGB Financial Services
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	9
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Reregistered"		2004-12-02	2005-08-17	SAQA 1657/04
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2006-08-17		2009-08-17

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 is replaced by:

US ID	Unit Standard Title	Pre-2009 NQF Level	NQF Level	Credits	Replacement Status
119679	Analyse the Financial Services industry and the role of insurance in a business environment	Level 4	NQF Level 04	9

PURPOSE OF THE UNIT STANDARD

This unit standard analyses financial services for commonality and difference and introduces the need for insurance in a business entity. The focus is knowledge, skills, values and attitudes in relation to the business context.

The qualifying learner is capable of:

Analysing the different services that are classified as financial.

Explaining the different kinds of insurance that are important in a business enterprise.

Explaining a contract of insurance in a business entity.

Negotiating an insurance contract that meets the needs of a specific business enterprise.

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, Financial Literacy and Mathematical Literacy at NQF Level 3.

UNIT STANDARD RANGE

The typical scope of this unit standard is:

Business entities are small, medium or large that require insurance portfolios.

Financial services include large, medium and small banks, the central bank, micro-financiers, long and short term insurance, intermediary insurance, asset management, trust management, collective investments and South African Revenue Services.

Changes in structure include mergers, acquisitions and insolvencies.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Analyse the different services that are classified as financial.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The various categories of financial service are analysed and an indication given of the similarities and differences between the various services.

ASSESSMENT CRITERION 2

2. Business activities common to most financial service providers are analysed and an indication is given of where there is commonality and difference.

ASSESSMENT CRITERION 3

3. Current changes in the structure of the financial services sector are identified from the media and an indication is given of how these changes will impact on the sector and the consumer.

ASSESSMENT CRITERION 4

4. Four of the main holding companies in the field are analysed in terms of links to other financial organisations.

ASSESSMENT CRITERION 5

5. The financial organisations listed on the JSE and other markets are identified and reasons are given to explain why some financial organisations choose to list both locally and offshore.

SPECIFIC OUTCOME 2

Demonstrate knowledge and understanding of the kinds of insurance that are important in a business

OUTCOME NOTES

Demonstrate knowledge and understanding of the kinds of insurance that are important in a business venture.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The concepts of insurance and pooling of risk are explained in relation to business enterprise risk management.

ASSESSMENT CRITERION 2

2. The role of insurance is described in relation to business enterprise financial planning.

ASSESSMENT CRITERION 3

3. Terminology used in the insurance industry such as offer, acceptance and subject matter is applied to insurance in the business sector.

ASSESSMENT CRITERION 4

4. The concept of insurable interest is explained as applied to a specific business entity.

ASSESSMENT CRITERION 5

5. Five events and risks that can be insured are identified and the advantages of insurance are explained in relation to a specific business entity.

ASSESSMENT CRITERION 6

6. Two business events and risks that cannot be insured are identified and reasons are given why some business risks are uninsurable.

ASSESSMENT CRITERION 7

7. The concept of claims reserves is explained with reference to the effect these have on the payment of a claim.

ASSESSMENT CRITERION 8

8. The importance of auditing books of business to provide claims statistics is explained and an indication is given of the action that can be taken if claims statistics are unsatisfactory.

ASSESSMENT CRITERION 9

9. The concept of a captive market/portfolio is explained with reference to the role of both the intermediary and the insurance company.

SPECIFIC OUTCOME 3

Explain a contract of insurance in a business entity.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The purpose of a contract is explained with reference to an actual policy for a business entity.

ASSESSMENT CRITERION 2

2. The purpose of a portfolio is explained and the characteristics of a portfolio are indicated for an authentic business enterprise.

ASSESSMENT CRITERION 3

3. The term endorsement is explained and examples of endorsements are identified in a business contract.

ASSESSMENT CRITERION 4

4. The main rights and responsibilities of the insured are understood and explained in terms of a complex business insurance contract and the need for reinsurance.

SPECIFIC OUTCOME 4

Negotiate an insurance contract to meet the needs of a selected business enterprise.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The need for insurance is identified in the financial planning of a business entity.

ASSESSMENT CRITERION 2

2. Business entity specific risks and insurance needs are analysed with a view to negotiating insurance to meet the identified needs.

ASSESSMENT CRITERION 3

3. An insurance contract is investigated with two different insurance institutions to meet the identified need a decision is made and supported to explain the particular insurance choice.

ASSESSMENT CRITERION 4

4. Exclusions in the contract are identified and an indication is given as to why the exclusions are necessary and whether they are acceptable to the business entity.

ASSESSMENT CRITERION 5

5. The terms of the contract are explained for the selected business entity.

ASSESSMENT CRITERION 6

7. Specialised insurance required to meet the needs of a particular business enterprise are identified and reasons are given to explain why the identified risks are important to the particular kind of business.

SPECIFIC OUTCOME 5

Analyse the different services that are classified as financial.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The various categories of financial service are analysed and an indication given of the similarities and differences between the various services.

ASSESSMENT CRITERION 2

2. Business activities common to most financial service providers are analysed and an indication is given of where there is commonality and difference.

ASSESSMENT CRITERION 3

3. Current changes in the structure of the financial services sector are identified from the media and an indication is given of how these changes will impact on the sector and the consumer.

ASSESSMENT CRITERION 4

4. Four of the main holding companies in the field are analysed in terms of links to other financial organisations.

ASSESSMENT CRITERION 5

5. The financial organisations listed on the JSE Securities Exchange and other markets are identified and reasons are given to explain why some financial organisations choose to list both locally and offshore.

SPECIFIC OUTCOME 6

Demonstrate knowledge and understanding of kinds of insurance.

OUTCOME NOTES

Demonstrate knowledge and understanding of the kinds of insurance that are important in a business venture.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The concepts of insurance and pooling of risk are explained in relation to business enterprise risk management.

ASSESSMENT CRITERION 2

2. The role of insurance is described in relation to business enterprise financial planning.

ASSESSMENT CRITERION 3

3. Terminology used in the insurance industry such as offer, acceptance and subject matter is applied to insurance in the business sector.

ASSESSMENT CRITERION 4

4. The concept of insurable interest is explained as applied to a specific business entity.

ASSESSMENT CRITERION 5

5. Five events and risks that can be insured are identified and the advantages of insurance are explained in relation to a specific business entity.

ASSESSMENT CRITERION 6

6. Two business events and risks that cannot be insured are identified and reasons are given why some business risks are uninsurable.

ASSESSMENT CRITERION 7

7. The concept of claims reserves is explained with reference to the effect these have on the payment of a claim.

ASSESSMENT CRITERION 8

8. The importance of auditing books of business to provide claims statistics is explained and an indication is given of the action that can be taken if claims statistics are unsatisfactory.

ASSESSMENT CRITERION 9

9. The concept of a captive market/portfolio is explained with reference to the role of both the intermediary and the insurance company.

SPECIFIC OUTCOME 7

Explain a contract of insurance in a business entity.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The purpose of a contract is explained with reference to an actual policy for a business entity.

ASSESSMENT CRITERION 2

2. The purpose of a portfolio is explained and the characteristics of a portfolio are indicated for an authentic business enterprise.

ASSESSMENT CRITERION 3

3. The term endorsement is explained and examples of endorsements are identified in a business contract.

ASSESSMENT CRITERION 4

4. The main rights and responsibilities of the insured are understood and explained in terms of a complex business insurance contract and the need for reinsurance.

SPECIFIC OUTCOME 8

Negotiate an insurance contract to meet the needs of a selected business enterprise.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The need for insurance is identified in the financial planning of a business entity.

ASSESSMENT CRITERION 2

2. Business entity specific risks and insurance needs are analysed with a view to negotiating insurance to meet the identified needs.

ASSESSMENT CRITERION 3

3. An insurance contract is investigated with two different insurance institutions to meet the identified need a decision is made and supported to explain the particular insurance choice.

ASSESSMENT CRITERION 4

4. Exclusions in the contract are identified and an indication is given as to why the exclusions are necessary and whether they are acceptable to the business entity.

ASSESSMENT CRITERION 5

5. The terms of the contract are explained for the selected business entity.

ASSESSMENT CRITERION 6

6. Specialised insurance required to meet the needs of a particular business enterprise are identified and reasons are given to explain why the identified risks are important to the particular kind of business.

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.

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 can identify and solve problems and make a decision about the choice of an insurance contract for a business entity by understanding the consequences of insuring or not insuring risk and the selection of a portfolio to meet specific needs.

UNIT STANDARD CCFO ORGANISING

The learner can organise and manage him/herself by undertaking financial planning for the insurance needs a business enterprise.

UNIT STANDARD CCFO COLLECTING

The learner can organise and manage him/herself by undertaking financial planning for the insurance needs a business enterprise.

UNIT STANDARD CCFO COMMUNICATING

The learner can communicate effectively using visual, mathematics and language skills in the modes of oral and written presentations when explaining the terms of the contract of a selected business entity and the rights and responsibilities of the insured and the need for reinsurance.

UNIT STANDARD CCFO DEMONSTRATING

The learner can see the world as a set of related systems in identifying changes in the structure of the Financial Services Sector and indicate the impact on the sector and the consumer.

UNIT STANDARD ASSESSOR CRITERIA

N/A

UNIT STANDARD NOTES

This unit standard has been replaced by unit standard 119679, which is "Analyse the Financial Services industry and the role of insurance in a business environment", Level 4, 9 credits.

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Core	48640	National Certificate: Financial Services Management	Level 4	Level TBA: Pre-2009 was L4	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Core	20773	National Certificate: Long Term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	INSETA
Core	21796	National Certificate: Short Term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2005-06-12	Was INSETA until Last Date for Achievement
Elective	20638	National Certificate: Collective Investment Schemes	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	INSETA
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	24396	National Certificate: Risk Management	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2006-10-08	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.

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