Financial Industry Competency Standards (FICS) Life Insurance: Underwriting Job Family

Transcription

1 Financial Industry Standards (FICS) Life Insurance: Underwriting Job Family

2 Contents Understanding the Standards Overview of the FICS Framework and Key Components 03 Standards 09 Range and Context 17 Classes of Insurance and Applicable Laws and Regulations 19 Understanding the Certification Requirements Certification Reference Table 21 Understanding the Training and Assessment Requirements Assessment Matrix Job Role IV 23 Job Role V / VI 26 Curriculum and Learning Outcomes Table 29 Appendices 49 The Institute of Banking and Finance Page 2 of 51 All Rights Reserved Version 1.0

3 Overview of the FICS Framework and Key Components COMPETENCY TYPES COMPETENCYFRAMEWORK Industry Working Groups Responsible for setting industry segments competency standards JOB FAMILY Technical (Occupational) Competencies Technical (Industry) Competencies Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Element 1 Element 2 Element 3 Element 4 Element 5 Element 6 Element 7 Definition of performance criteria, range & context, evidence sources, and curriculum & learning outcomes for each competency element Element 8 Element 9 Element 10 Element 11 Element 12 Element 13 Element 14 Job Roles Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Operates in an environment that comprises largely non-routine, unpredictable and complex work activities with personal autonomy, accountability and supervisory responsibilities. Operates in an environment that comprises largely routine, procedural and non-complex work activities with limited personal autonomy, accountability and supervisory responsibilities. Degree of Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 For assigning degree of competency only for nonroutine, unpredictable and complex work activities For assigning degree of competency only for routine, procedural and non-complex work activities 1.1 Job Family Job Families used in the FICS framework refer to occupational groups or clusters of closely-related occupations or jobs that capture the essence of an underlying business function. For example, The Life / General Insurance industry segment will have Job Families such as Claims Handling and Underwriting while the Financial Market industry segment will have Job Families such as Trading and Research. The Institute of Banking and Finance Page 3 of 51 All Rights Reserved Version 1.0

4 1.2 Job Roles For the FICS framework, competencies and their related certifications will be based on job roles rather than on job titles. Job roles will capture the essence of what must be done and how it should be done to achieve the required level of performance, and more importantly, the use of roles allows for overlap in responsibilities. Job titles on the other hand, tend to be narrowly defined and vary widely across organisations. The range and context in which the various job roles are performed can differ within a particular segment or job family. These can be classified into two broad work contexts: Job Role I / II / III In an environment that comprises largely routine, procedural and non-complex work activities with limited personal autonomy, accountability and supervisory responsibilities. Job Role IV / V / VI In an environment that comprises largely non-routine, unpredictable and complex work activities with personal autonomy, accountability and supervisory responsibilities. It should be noted that not all six job roles will be used. Each job family or segment will apply only the range of job roles relevant to that job family or segment. Broad guidelines for the six job roles are set out in Appendix 1: Guidelines on Roles and Responsibilities. The progressive scale of the job roles under the FICS framework also takes into account the role of a Specialist with management responsibilities. Such a role will be categorized as Job Role V according to the guidelines. 1.3 Type The FICS framework adopts two broad categories or types of competencies, namely Technical (Occupational) and Technical (Industry) Competencies. a. Technical (Occupational) Occupational competencies refer to competencies that are very specific to a particular job role. It includes primarily knowledge and skills required to perform a particular job or occupation. However, it may also include unique intellectual competencies or personal attributes if they are considered core competencies required to perform that particular occupation or role. As an illustration, the occupational competencies required of a trader in the financial markets industry segment will be distinct from that required of a private banker in the wealth management industry segment. The Institute of Banking and Finance Page 4 of 51 All Rights Reserved Version 1.0

5 b. Technical (Industry) 1.4 Unit Technical competencies refer to technical or job-related capabilities in performing a specific job. Industry competencies refer to the common competencies relevant across jobs within the industry. Some examples of this type of competencies are: Knowledge of legal and regulatory systems and requirements Industry Code of Ethics / Conduct A Unit refers to a cluster of broadly-related job functions / processes or capabilities for technical competencies and related behaviours or traits demonstrated for generic competencies. Each unit has its corresponding degree of competency for a particular experience level. 1.5 Element Elements are sub-divisions of a competency unit which describe a work activity or a behavioural demonstration that makes up a Unit. A few Elements is grouped together under one Unit. 1.6 Degree of For common competency units across various job roles, the degree of competency provides some measure to distinguish the standards expected between a junior role and more senior roles. For instance, for a common unit of competency such as product knowledge, the depth and breadth of knowledge expected of a junior job role will be less than that of a senior job role. The two broad work contexts that different degrees of competency are to be demonstrated as set out below: An environment that comprises only non-routine, unpredictable and complex work activities. An environment that comprises only routine, procedural and non-complex work activities. Broad definitions of the six degrees of competency are set out in Appendix 2: Definitions on Degrees of. The Institute of Banking and Finance Page 5 of 51 All Rights Reserved Version 1.0

6 Note: The degrees of competency are not intended to be perfectly matched to a particular job role. For instance, while a Job Role VI Business Unit Head operates in a largely non-routine, unpredictable and complex work context, a core competency unit for that role may involve a routine activity. In this case, the appropriate degree of competency for that routine activity will be Degree Performance Criteria Performance Criteria states what has to be achieved, in precise qualitative terminologies, in order to meet the requirements of the competency unit and its elements through a series of sub-tasks which is indicative of the performance. 1.8 Range and Context Range and Context provides an overview of the type of contexts or circumstances in which the performance criteria applies. It gives further references to the specific areas or terms highlighted in the Performance Criteria, such as type of customers, range of products and the process concerned. 1.9 Certification Reference Table Certification Reference Table provides information to the candidate, training provider and/or assessment service provider on the: Types of job roles available within the particular job family Responsibilities of each job role units applicable for each job role Certification requirements Recertification requirements For Certification Requirements, in addition to obtaining all Statements of Attainment (passing all competency units), and having the minimum number of years of relevant working experience, we have also set the requirement for a minimum of one-year experience in a job-related role in order to be awarded an Industry Certification. This one-year job role-related experience does not prevent candidates from passing their competency assessments. Rather, it is to ensure that candidates possess the appropriate professional work experience prior to using his professional designation. The Institute of Banking and Finance Page 6 of 51 All Rights Reserved Version 1.0

7 1.10 Assessment Matrix Assessment Matrix provides information to the candidate and/or assessment service provider on the: Recommended Assessment Methodology Assessment instruments Evidence Guide This matrix shows the combination of assessment methodologies that could be used to address both the knowledge-dominant and skills-dominant competency units of a job role. The assessment is against a set of prescribed competency units or standards and implies that assessors judge candidates on what they know and actually do in absolute terms rather than relative to the performance of other candidates. A key outcome of this process is the collection and evaluation of the evidence of performance. a. Recommended Assessment Methodology The recommended assessment methodology is intended as reference for assessment service providers in developing their assessment programmes. Written Test or Examination is recommended for more knowledge-dominant competencies while Individual assessment is for more skills-dominant competencies. b. Assessment Instruments Assessment Instruments refer to the means of gathering valid, reliable and sufficient evidence to support the demonstration of a competency in accordance with the performance criteria. c. Evidence Sources Evidence Sources are supporting information to guide Assessors in identifying the types of documentary evidence or observable work activities / behaviours through which proof of competent against respective competency unit can be obtained. Examples of evidence sources applicable to the wealth management industry segment may include income tax or salary records, loan documents, title deeds, Memorandum & Articles and financial statements. The Institute of Banking and Finance Page 7 of 51 All Rights Reserved Version 1.0

8 1.11 Curriculum and Learning Outcomes Table The table identifies the scope of knowledge and skills required for a candidate to demonstrate competence in the specific work activity. Reference can also be made to the Range and Context developed for the competency unit where applicable Learning Outcomes are statements that specify what the candidate is expected to be able to do upon completion of the programme. Typically, each learning outcome statement begins with the phrase "The candidate should be able to " In developing the curriculum, financial training providers should refer to learning outcome statements to ascertain the depth and breadth of the training coverage expected of the programme. As for assessment service providers, they could also refer to the learning outcome statements as a guide, for example. Operative verb used in LOS Identify State Define Calculate Explain Describe Discuss Outline Distinguish Recommend Justify Critique Evaluate The focus of the assessment Knowledge and comprehension Application and analysis Synthesis and evaluation For better understanding of the description of these operative verbs used in the LOS, please refer to Appendix 3: Description of Operative Verbs Used in Learning Outcome Statements. The Institute of Banking and Finance Page 8 of 51 All Rights Reserved Version 1.0

9 Overview Industry Segment: Job Family: Life Insurance Type Unit Element Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Degree of Role IV V VI 1.1 Gather information and evaluate insurability of applications 1. Analyse and Evaluate Underwriting Risks 1.2 Assess customers needs Evaluate and accept appropriate level of risk TECHNICAL (OCCUPATIONAL) 2. Decide on and Finalise Policy Documentation 3. Monitor and Supervise Underwriting 2.1 Negotiate and communicate conditional acceptance 2.2 Finalise policy documents 3.1 Review basis of underwriting decisions 3.2 Identify issues and trends 3.3 Manage client relationships and manage complaints Monitor compliance with regulatory requirements, organisational policies and procedures and industry guidelines The Institute of Banking and Finance Page 9 of 51 All Rights Reserved Version 1.0

10 Overview Industry Segment: Job Family: Life Insurance Type Unit Element Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Degree of Role IV V VI TECHNICAL (INDUSTRY) 4. Acquire and Apply Life Insurance Industry and Product Knowledge 5. Comply with Life Insurance Legislations, Regulations and Industry Codes of Practice 4.1 Demonstrate understanding of general principles of insurance and insurance products 4.2 Keep abreast of changes and developments in the life insurance industry and product knowledge 5.1 Identify and comply with legislative, regulatory and industry requirements 5.2 Keep abreast of changes of relevant laws and regulations and understand its implications The Institute of Banking and Finance Page 10 of 51 All Rights Reserved Version 1.0

11 Details Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Performance Criteria describes what needs to be achieved to demonstrate competence. A competent person should successfully achieve the following: Unit Element Role IV Role V Role VI 1. Analyse and Evaluate Underwriting Risks 1.1 Gather information and evaluate insurability of applications 1.2 Assess customer needs Gather underwriting documentation and information from distribution intermediaries (for routine applications) Source and assess underwriting documentation and information extracted from information systems / databases. Evaluate insurability of applicant based on complete underwriting documentation and information obtained from distribution intermediaries and information systems / databases (for routine applications) Investigate and assess underwriting risks using appropriate underwriting documentation and information, and underwriting guidelines (for routine applications) Identify gaps between customer needs and underwriting risks and recommend alternative solutions which meets customers needs Gather underwriting documentation and information from distribution intermediaries (for complex and non-routine applications) Source and assess underwriting documentation and information extracted from information systems / databases. Evaluate insurability of applicant based on complete underwriting documentation and information obtained from distribution intermediaries and information systems / databases (for complex and non-routine applications) Investigate and assess underwriting risks using appropriate underwriting documentation and information, and underwriting guidelines (for complex and non-routine applications) Identify gaps between customer needs and underwriting risks and recommend alternative solutions which meets customers needs The Institute of Banking and Finance Page 11 of 51 All Rights Reserved Version 1.0

12 Details Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Performance Criteria describes what needs to be achieved to demonstrate competence. A competent person should successfully achieve the following: Unit Element Role IV Role V Role VI 1.3 Evaluate and accept appropriate level of risk Review underwriting documentation and information (for routine applications) and liaise with service providers and experts Rate applications based on underwriting documentation and information, including service providers and experts reports Ensure that all features of underwriting risks attract variation of coverage and premium Monitor risk accumulation and decide on appropriateness of reinsurance, effect reinsurance where necessary Make appropriate decision in a timely manner, having considered underwriting guidelines, existing business, and document basis of underwriting decisions Refer all applications above limits to appropriate persons, having made recommendations of appropriate underwriting decisions Review underwriting documentation and information necessary for assessment of applications (for complex and non-routine applications) and liaise with service providers and experts Rate applications based on underwriting documentation and information, including service providers and experts reports Ensure that all features of underwriting risks attract variation of coverage and premium Monitor risk accumulation and decide on appropriateness of reinsurance, effect reinsurance where necessary Make appropriate decision in a timely manner, having considered underwriting guidelines, existing business, and document basis of underwriting decisions Refer all applications above limits to appropriate persons, having made recommendations of appropriate underwriting decisions The Institute of Banking and Finance Page 12 of 51 All Rights Reserved Version 1.0

13 Details Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Performance Criteria describes what needs to be achieved to demonstrate competence. A competent person should successfully achieve the following: Unit Element Role IV Role V Role VI 2. Decide on and Finalise Policy Documentation 2.1 Negotiate and communicate conditional acceptance, premiums or declines 2.2 Finalise policy documents Advise customers of conditional acceptance, premiums or declines Employ appropriate communication channels to apprise relevant personnel of follow up on actions, and monitor status of conditional acceptance Provide policy information and the relevant components of the approved underwriting decisions such as premiums, limits and exclusions, to policy service personnel for their issuance pf policy documents Monitor to ensure issuance of logical and coherent policy documents which reflects the intended insurance coverage for underwriting risks upon approval of appropriate persons 3. Monitor and Supervise Underwriting 3.1 Review basis of underwriting decisions 3.2 Identify issues and trends Review and assess the reasonableness of the basis of underwriting and reinsurance recommendations or underwriting decisions Approve recommendations (for routine applications) in accordance with organisation policies and procedures Obtain and analyse feedback on claims and industry developments and assess its impact on underwriting guidelines Provide inputs from underwriting perspective to actuaries for their development of pricing structure and premium schedule with sufficient details, including policy specifications Review and assess the reasonableness of the basis of underwriting and reinsurance recommendations or underwriting decisions Approve recommendations (for complex and non-routine applications) in accordance with organisation policies and procedures Obtain and analyse feedback on claims and industry developments and assess its impact on underwriting guidelines Provide inputs from underwriting perspective to actuaries for their development of pricing structure and premium schedule with sufficient details, including policy specifications The Institute of Banking and Finance Page 13 of 51 All Rights Reserved Version 1.0

14 Details Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Performance Criteria describes what needs to be achieved to demonstrate competence. A competent person should successfully achieve the following: Unit Element Role IV Role V Role VI 3.3 Manage client relationships and manage complaints Inform customers of the status of the proposal and perform follow-up procedures to obtain additional information and documentation where necessary Document complaints received in accordance with established organisation policies and procedures as well as legislations and regulations Identify, recommend and/or implement improvements in organisation policies and procedures for dealing with customers Authorise action as appropriate in accordance with established organisation policies and procedures, and raise unresolved complaints or disputes to appropriate persons, regulator or external industry body where necessary Approve and direct action to implement recommendations or outcomes from complaints procedures undertaken by staff Direct necessary action for unresolved complaints or disputes and communicate to higher authority, regulator or external industry body where necessary 3.4 Monitor compliance with regulatory requirements, organisational policies and procedures and industry guidelines Set up policies and guidelines to ensure that industry guidelines and codes of practice, established organisational policies and procedures and legislations and regulations are complied with Monitor staff activities and review staff work to ensure compliance Identify instances of non-compliance and take/approve necessary action to resolve and report any non-compliance Set up policies and guidelines to ensure that industry guidelines and codes of practice, established organisational policies and procedures and legislations and regulations are complied with Approve necessary action to resolve any non-compliance The Institute of Banking and Finance Page 14 of 51 All Rights Reserved Version 1.0

15 Details Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Performance Criteria describes what needs to be achieved to demonstrate competence. A competent person should successfully achieve the following: Unit Element Role IV Role V Role VI 4. Acquire and Apply Life Insurance Industry and Product Knowledge 4.1 Demonstrate understanding of general principles of insurance and insurance products 4.2 Keep abreast of changes and developments in the life insurance industry and product knowledge Acquire a generic understanding of the life/general insurance industry Identify the products applicable to the industry and work activity Apply the knowledge of principles of general insurance and general insurance products to work effectively within the insurance industry Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends Acquire a generic understanding of the financial services industry Identify the products applicable to the industry and work activity Apply the knowledge of principles of general insurance and general insurance products to work effectively within the insurance industry Identify changes and developments in the financial services industry and its products and services on an ongoing basis and apply any identified changes as appropriate to work activities Review industry trends and update knowledge on products and services pertaining to the general insurance services industry Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends Acquire a generic understanding of the financial services industry Identify the products applicable to the industry and work activity Apply the knowledge of principles of general insurance and general insurance products to work effectively within the insurance industry Identify changes and developments in the financial services industry and its products and services on an ongoing basis and apply any identified changes as appropriate to work activities Review industry trends and update knowledge on products and services pertaining to the general insurance industry Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends The Institute of Banking and Finance Page 15 of 51 All Rights Reserved Version 1.0

16 Details Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance with approved underwriting guidelines/limits. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Performance Criteria describes what needs to be achieved to demonstrate competence. A competent person should successfully achieve the following: Unit Element Role IV Role V Role VI 5. Comply with Life Insurance Legislations, Regulations and Industry Codes of Practice 5.1 Identify and comply with legislative, regulatory and industry requirements 5.2 Keep abreast of changes of relevant laws and regulations and understand its implications Identify relevant legislations and regulations and apply these requirements to work practices accordingly Clarify and confirm own interpretation and application of guidelines, procedures, rules and regulations and codes that impact on day-to-day work practices Monitor own work practices to ensure compliance with regulations and codes applicable to the industry Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends Identify relevant legislations and regulations and apply these requirements to work practices accordingly Clarify and confirm own interpretation and application of guidelines, procedures, rules and regulations and codes that impact on day-to-day work practices Provide guidance and clarification to other staff on laws and regulations pertaining to the industry and explain how it applies to the work activity Obtain feedback, develop and/or recommend changes to policies and procedures where necessary to take into account industry and product developments Monitor own work practices to ensure compliance with regulations and codes applicable to the industry Identify changes in relevant legislations and regulations and understand its implications on day-to-day work practices Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends Identify relevant legislations and regulations and apply these requirements to work practices accordingly Clarify and confirm own interpretation and application of guidelines, procedures, rules and regulations and codes that impact on day-to-day work practices Approve and implement the changes to policies and procedures where necessary to take into account regulatory developments Monitor own work practices to ensure compliance with regulations and codes applicable to the industry Identify changes in relevant legislations and regulations and understand its implications on day-to-day work practices Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends The Institute of Banking and Finance Page 16 of 51 All Rights Reserved Version 1.0

17 Range and Context Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance wit the underwriting guidelines/limits approved by the senior management. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Range and Context Distribution intermediaries Underwriting Risks Underwriting Documentation and Information Sales personnel Third party agents Medical Occupational Lifestyle Financial Keyman Avocational Residence Morald Hazard Underwriting worksheet Identity card, Birth certificate, Marriage certificate Correspondence Prior coverage history Medical information Financial information Expert reports from service providers (including medical laboratory tests reports) Policy document Life insurance products Codes of Practice Service Providers and Experts Whole life Term life Endowment Total and permanent disability Critical illness Long term care Hospital and surgical Personal accident Annuity Group insurance Disability income Hospital Cash Marketing and advertising Information on costs and fees Know your client principles Free look period Changes to policy and renewals Claims Complaints Documentation standards Dispute resolution Customer confidentiality Doctor or medical consultant Accountants Auditors Legal counsel Medical laboratories The Institute of Banking and Finance Page 17 of 51 All Rights Reserved Version 1.0

18 Range and Context Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance wit the underwriting guidelines/limits approved by the senior management. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Range and Context Legislations and Regulations Information Systems/ Databases Underwriting guidelines Insurance Act (Cap 142) Insurance (Amendment) Act 2003 Insurance (Financial Guarantee Insurance) Regulations Insurance (Lloyd's Scheme) Regulations Insurance (Lloyd's Asia Scheme) Regulations Insurance (Protection And Indemnity Clubs) Regulations 2002 MAS Notices To All Insurers MAS Notices To Life Insurers MAS Circulars to Insurance Companies MAS Guidelines for Insurance Companies MAS Guidelines on Risk Management Practices and all other relevant legislative requirements regulations pertaining to the life insurance industry Mainframe systems - in-house system or off-the-shelf Word processing Spreadsheet Internet/intranet Search engines In-house guidelines Re-insurer guidelines Routine Applications Complex and Non-Routine Applications Underwriting Decisions Simple underwriting risk and technical definitions One impairment (eg. hypertension, asthma or obesity) Low monetary sum assured Client base comprising individuals with low risks and low monetary coverage requirements Domestic applications Complex underwriting risk and technical definitions More than one impairment Important client base High monetary sum assured Cross-border applications Accept Standard Accept Sub-standard Accept Preferred Postpone until investigation is completed Reject Appropriate Persons Communication Channels Supervisor Manager Actuary Compliance officer/manager Finance department Paper-based Verbal (followed up by hard copy where possible) The Institute of Banking and Finance Page 18 of 51 All Rights Reserved Version 1.0

19 Classes of Insurance and Applicable Laws and Regulations Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance wit the underwriting guidelines/limits approved by the senior management. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Life Law and regulations Applicable for ALL Roles Insurance Act (Cap 142) Insurance (Amendment) Act 2003 Life Insurance Association (LIA) Guidelines, eg. Code of Life Insurance Practice (COLIP) Applicable to Roles IV, V and VI Insurance (Financial Guarantee Insurance) Regulations Insurance (Lloyd's Scheme) Regulations Insurance (Lloyd's Asia Scheme) Regulations Insurance (Protection And Indemnity Clubs) Regulations 2002 MAS Notices To All Insurers MAS Notices To Life Insurers MAS Circulars to Insurance Companies MAS Guidelines for Insurance Companies MAS Guidelines on Risk Management Practices and all other relevant legislative requirements regulations pertaining to the life insurance industry. Securities and Futures Act Financial Advisers Act Central Provident Fund Act Contract (Rights of Third Party) Act Cap 53B Estate Duty Act Trustee Act GST Act Bankruptcy Act Conveyancing and Law of Property Act Intestate Succession Act Applicable to Roles V and VI Income Tax Act The Institute of Banking and Finance Page 19 of 51 All Rights Reserved Version 1.0

20 Classes of Insurance and Applicable Laws and Regulations Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance wit the underwriting guidelines/limits approved by the senior management. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Products and coverage Applicable for ALL Roles Life Protection Critical Illness Protection Disability Protection Income Protection Medical Insurance Savings & Retirement Investment-Linked Plans CPF Investment Schemes Supplementary Retirement Scheme Child Education Comprehensive Home Protection Mortgage Protection Keyman Insurance Accidental cover Life Dispute Resolution Applicable for ALL Roles Consumer Association of Singapore The Insurance Disputes Resolution Organisation The Institute of Banking and Finance Page 20 of 51 All Rights Reserved Version 1.0

21 Certification Reference Table Industry Segment: Job Family: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance wit the underwriting guidelines/limits approved by the senior management. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Role IV Role V Role VI Responsibility Responsible for performing a limited specialist and support role in an underwriting operation. Possesses some personal accountability, decision-making authority and risk management skills but has limited bottom-line responsibility. Operates in an environment which is largely non-routine, unpredictable and complex Responsible for managing the day-to-day underwriting operations. Responsible for managing underwriting staff. Administers and manages adherence to the underwriting department budget. Performs a specialist function in dealing with complex and non-routine underwriting proposals. Possesses a high degree of personal accountability, decision-making authority and risk management skills Operates in an environment which is largely non-routine, unpredictable and complex Responsible for setting the strategic direction for the underwriting department. Has tactical and bottom line responsibility for the underwriting department. Responsible for aligning the underwriting department objectives with overall corporate goals. Possesses a significant degree of personal accountability, decision-making authority and risk management skills Operates in an environment which is largely non-routine, unpredictable and complex Units 1. Analyse and evaluate underwriting risks. 2. Decide on and finalise policy documentation. 3. Not applicable. 4. Acquire and apply life insurance industry and product knowledge. 5. Comply with life insurance legislations, regulations and industry codes of practice. 1. Analyse and evaluate underwriting risks. 2. Decide on and finalise policy documentation. 3. Monitor and supervise underwriting. 4. Acquire and apply life insurance industry and product knowledge. 5. Comply with life insurance legislations, regulations and industry codes of practice. 1. Analyse and evaluate underwriting risks. 2. Decide on and finalise policy documentation. 3. Monitor and supervise underwriting. 4. Acquire and apply life insurance industry and product knowledge. 5. Comply with life insurance legislations, regulations and industry codes of practice. The Institute of Banking and Finance Page 21 of 51 All Rights Reserved Version 1.0

22 Certification Reference Table Industry Segment: Job Family: Certification Requirements In order to be awarded a financial services industry certification, the following is required: Life Insurance Underwriting refers to the work activities surrounding underwriting contracts taking into consideration the capacity of the company and in compliance wit the underwriting guidelines/limits approved by the senior management. Personnel are also involved in the assessment of risk/premium, analysis of profitability of products/portfolio, placement of reinsurance risk and negotiation with brokers and companies seeking insurance needs. Role IV Role V Role VI Minimum of 1 year of experience in the role that touches all areas of the competencies required for the Role IV designation Minimum of 2 years of total relevant working experience Statements of Attainment must be obtained for all competency units to receive the industry certification All Statements of Attainment are valid for a period of two years from the date of completion of the assessment Minimum of 1 year of experience in the role that touches all areas of the competencies required for the Role V designation Minimum of 5 years of total relevant working experience Statements of Attainment must be obtained for all competency units to receive the industry certification All Statements of Attainment are valid for a period of two years from the date of completion of the assessment Minimum of 1 year of experience in the role that touches all areas of the competencies required for the Role VI designation Minimum of 8 years of total relevant working experience Statements of Attainment must be obtained for all competency units to receive the industry certification All Statements of Attainment are valid for a period of two years from the date of completion of the assessment Re-certification Requirements Undertake re-certification every 3 years At least 18 credit hours of Continuing Certification Requirements per annum in the relevant field Undertake re-certification every 3 years At least 18 credit hours of Continuing Certification Requirements per annum in the relevant field Undertake re-certification every 3 years At least 18 credit hours of Continuing Certification Requirements per annum in the relevant field The Institute of Banking and Finance Page 22 of 51 All Rights Reserved Version 1.0

23 Assessment Matrix Industry Segment: Life Insurance Job Family: Underwriting Job Role: IV Assessment Evidence Guide Type Unit Rec d Methodology Instruments Examples of evidence that provide guidance on whether competency standards are met. 1. Analyse and Evaluate Underwriting Risks Individual Assessment Workplace Assessment (WPA): Workplace or an assessment centre under simulated or actual workplace condition (covers on-the-job and off-the-job training component). Assessment methods to be used include (i) observation of candidate s performance; (ii) review of documentary evidence; (iii) feedback on candidate s performance; (iv) evidence of attendance of relevant courses; and (v) interview. Estimated Assessment Time: 1.5 hrs Observation of candidate analysing and evaluating underwriting risks on-the-job or in a simulation. Performance track records, appraisal reports, testimonials or work documents. TECHNICAL (OCCUPATIONAL) Only one of the three instruments required for assessment OR OR Recognition of Prior Learning (RPL): Gives formal recognition of competencies that a person has acquired through formal training, work experience and/or life experience. Assessment methods to be used include (i) documentary review e.g. CV, supervisor report, testimonials, membership of relevant bodies, etc; (ii) 3rd party reports; (iii) Supervisor s report; and (iv) interview. Estimated Assessment Time: 1.0 hr Facilitated Training and Assessment (FTA): Classroom training and assessment covering off-the-job training component. Assessment methods to be used include (i) case studies; (ii) presentations; (iii) discussions; (iv) written tests/exercises; (v) role play; (vi) simulation; and (vii) interview. Estimated Assessment Time: 1.5 hrs Verbal responses from candidate relating past experiences of analysing and evaluating underwriting risks. Observation of candidates analysing and evaluating underwriting risks in training or in a simulation. 2. Decide on and Finalise Policy Documentation Individual Assessment Workplace Assessment (WPA): Workplace or an assessment centre under simulated or actual workplace condition (covers on-the-job and off-the-job training component). Assessment methods to be used include (i) observation of candidate s performance; (ii) review of documentary evidence; (iii) feedback on candidate s performance; (iv) evidence of attendance of relevant courses; and (v) interview. Estimated Assessment Time: 1.5 hrs Observation of candidate deciding on and finalising policy documentation on-the-job or in a simulation. Performance track records, appraisal reports, testimonials or work documents. The Institute of Banking and Finance Page 23 of 51 All Rights Reserved Version 1.0

24 Assessment Matrix Industry Segment: Life Insurance Job Family: Underwriting Job Role: IV Assessment Evidence Guide Type Unit Rec d Methodology Instruments Examples of evidence that provide guidance on whether competency standards are met. Only one of the three instruments required for assessment OR Recognition of Prior Learning (RPL): Gives formal recognition of competencies that a person has acquired through formal training, work experience and/or life experience. Assessment methods to be used include (i) documentary review e.g. CV, supervisor report, testimonials, membership of relevant bodies, etc; (ii) 3rd party reports; (iii) Supervisor s report; and (iv) interview. Estimated Assessment Time: 1.0 hr Verbal responses from candidate relating past experiences of deciding on and finalising policy documentation. OR Facilitated Training and Assessment (FTA): Classroom training and assessment covering off-the-job training component. Assessment methods to be used include (i) case studies; (ii) presentations; (iii) discussions; (iv) written tests/exercises; (v) role play; (vi) simulation; and (vii) interview. Estimated Assessment Time: 1.5 hrs Observation of candidates deciding on and finalising policy documentation in training or in a simulation. 3. Monitor and Supervise Underwriting Not Applicable Not Applicable Not Applicable TECHNICAL (INDUSTRY) 4. Acquire and Apply Life Insurance Industry and Product Knowledge 5. Comply with Life Insurance Legislations, Regulations and Industry Codes of Practice Written Test or Examination Written Test or Examination Written questioning to ensure relevant knowledge and application of skills using written or computer-based tests. Format could take the form of multiple choice questions, short questions, case studies or essay questions. Estimated Assessment Time: 1.5 hrs Written questioning to ensure relevant knowledge and application of skills using written or computer-based tests. Format could take the form of multiple choice questions, short questions, case studies or essay questions. Estimated Assessment Time: 1.5 hrs Written responses from candidate demonstrating application of financial services and life insurance industry and product knowledge. Written responses from candidate demonstrating application of financial services and life insurance legislations, regulations and industry codes of practice. The Institute of Banking and Finance Page 24 of 51 All Rights Reserved Version 1.0

25 Assessment Matrix Industry Segment: Life Insurance Job Family: Underwriting Job Role: IV Assessment Evidence Guide Type Unit Assessment Guide: Rec d Methodology Instruments Competencies should be evidenced through a variety of assessment instruments and over a period of time to ensure validity, reliability and consistency of performance. All performance criteria, curriculum and learning outcomes are to be achieved across the range of competency units. Assessment should be undertaken within the context of the underwriting job family and may be combined with a cluster of related competency units as listed below: Examples of evidence that provide guidance on whether competency standards are met. Estimated Assessment Time for full assessment Individual Assessment (Technical Occupational) 1. Analyse and Evaluate Underwriting Risks 2. Decide on and Finalise Policy Documentation Examination (Technical Industry) 4. Acquire and Apply Life Insurance Industry and Product Knowledge 5. Comply with Life Insurance Legislations, Regulations and Industry Codes of Practice Total Estimated Assessment Time 3.0 hrs (WPA) 2.0 hrs (RPL) 3.0 hrs (FTA) 3.0 hrs 5.0 to 6.0 hrs The Institute of Banking and Finance Page 25 of 51 All Rights Reserved Version 1.0

26 Assessment Matrix Industry Segment: Life Insurance Job Family: Underwriting Job Role: V, VI Assessment Evidence Guide Type Unit Rec d Methodology Instruments Examples of evidence that provide guidance on whether competency standards are met. 1. Analyse and Evaluate Underwriting Risks Individual Assessment Workplace Assessment (WPA): Workplace or an assessment centre under simulated or actual workplace condition (covers on-the-job and off-the-job training component). Assessment methods to be used include (i) observation of candidate s performance; (ii) review of documentary evidence; (iii) feedback on candidate s performance; (iv) evidence of attendance of relevant courses; and (v) interview. Estimated Assessment Time: 1.5 hrs Observation of candidate analysing and evaluating underwriting risks on-the-job or in a simulation. Performance track records, appraisal reports, testimonials or work documents. TECHNICAL (OCCUPATIONAL) Only one of the three instruments required for assessment OR OR Recognition of Prior Learning (RPL): Gives formal recognition of competencies that a person has acquired through formal training, work experience and/or life experience. Assessment methods to be used include (i) documentary review e.g. CV, supervisor report, testimonials, membership of relevant bodies, etc; (ii) 3rd party reports; (iii) Supervisor s report; and (iv) interview. Estimated Assessment Time: 1.0 hr Facilitated Training and Assessment (FTA): Classroom training and assessment covering off-the-job training component. Assessment methods to be used include (i) case studies; (ii) presentations; (iii) discussions; (iv) written tests/exercises; (v) role play; (vi) simulation; and (vii) interview. Estimated Assessment Time: 1.5 hrs Verbal responses from candidate relating past experiences of analysing and evaluating underwriting risks. Observation of candidates analysing and evaluating underwriting risks in training or in a simulation. 2. Decide on and Finalise Policy Documentation Individual Assessment Workplace Assessment (WPA): Workplace or an assessment centre under simulated or actual workplace condition (covers on-the-job and off-the-job training component). Assessment methods to be used include (i) observation of candidate s performance; (ii) review of documentary evidence; (iii) feedback on candidate s performance; (iv) evidence of attendance of relevant courses; and (v) interview. Estimated Assessment Time: 1.5 hrs Observation of candidate deciding on and finalising policy documentation on-the-job or in a simulation. Performance track records, appraisal reports, testimonials or work documents. The Institute of Banking and Finance Page 26 of 51 All Rights Reserved Version 1.0