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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
119679  Analyse the Financial Services industry and the role of insurance in a business environment 
ORIGINATOR
SGB Insurance and Investment 
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" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
12168  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 
  • Communication at NQF Level 3.
  • Mathematical Literacy at NQF Level 3.
  • Financial 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 
    The various categories of financial service are analysed and an indication given of the similarities and differences between the various services. 

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

    ASSESSMENT CRITERION 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 2 
    Demonstrate knowledge and understanding of the kinds of insurance that are important in a business venture. 

    ASSESSMENT CRITERIA     

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

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

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

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

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

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

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

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

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

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

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

    ASSESSMENT CRITERION 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 a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA.
  • An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA, or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA according to the policies and guidelines for assessment and moderation of that ETQA, at its discretion, in terms of agreements reached about assessment and moderation between various ETQA's (including professional bodies). 
    		•

    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 collect, organise and critically evaluate information by analysing an insurance contract to ensure it meets the needs of a specific business entity. 

    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 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 12168, "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
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 


    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.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.