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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply actuarial knowledge to the assessment of risk in long term insurance 
SAQA US ID UNIT STANDARD TITLE
119999  Apply actuarial knowledge to the assessment of risk in long term insurance 
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 5  Level TBA: Pre-2009 was L5  12 
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
2024-06-30   2027-06-30  

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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who tender or quote in employee benefits or senior underwriters in Long-Term insurers.

The qualifying learner is capable of:
  • Explaining the role of an actuary in Long-Term insurance.
  • Applying actuarial instruments to assess a risk.
  • Using a data set to determine a price.
  • Substantiating a proposed price. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners should be competent in Communication and Mathematical Literacy at Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is use of a variety of actuarial instruments.
  • Actuarial instruments include, but are not limited to mortality and morbidity tables, multi-decrement tables, annuity tables and run-off triangles.
  • Analysing claims experience includes, but is not limited to, identifying prediction trends, statistical deviations, incurred but not reported claims, weighted averages and arithmetic averages. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the role of an actuary in long term insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Reasons why Long-Term insurers employ Actuaries are explained with examples. 

    ASSESSMENT CRITERION 2 
    The kind of work done by a research and Development Actuary is outlined and an indication is given of the consequences for an insurer if a prediction of viability of a product is incorrect. 

    ASSESSMENT CRITERION 3 
    The kind of work done by a Valuation Actuary is outlined and an indication is given of the consequences for an insurer if a fund is under funded. 

    ASSESSMENT CRITERION 4 
    The kind of work done by a Risk Actuary is outlined and an indication is given of the potential underwriting loss if a price is incorrect. 

    SPECIFIC OUTCOME 2 
    Apply actuarial instruments to assess a risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Mortality and morbidity tables used by a specific insurer are identified and an indication is given of when it may be appropriate to substitute another table for the default table. 

    ASSESSMENT CRITERION 2 
    A mortality table is applied to a specific application to interpret the risk. 

    ASSESSMENT CRITERION 3 
    A morbidity table is applied to a specific application to interpret the risk. 

    ASSESSMENT CRITERION 4 
    Appropriate actuarial instruments are selected to refine the interpretation of risk in an application. 

    SPECIFIC OUTCOME 3 
    Use a data set to determine a price. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    A client's claims experience is analysed and a decision is made as to whether or not to use the claims experience in determining an experience rate. 

    ASSESSMENT CRITERION 2 
    Appropriate actuarial instruments are used to determine a technical rate. 

    ASSESSMENT CRITERION 3 
    A price is determined using the technical and experience rates. 

    SPECIFIC OUTCOME 4 
    Substantiate a proposed price. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    A quote or tender is presented in the required format. 

    ASSESSMENT CRITERION 2 
    The document is discussed and motivated to substantiate the price. 


    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. 

    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 is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in making a decision as to whether or not to use claims experience to determine and experience rate. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in using actuarial instruments. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in presenting a quote and discussing and motivating a price. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation by outlining the consequences associated with the different kinds of actuarial work. 

    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 
    Note that the 12 credits includes at least 60 hours of mentored on the job experience. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49834   National Certificate: Financial Services: Long-Term Risk Assessment  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 
    Elective  49860   National Diploma: Financial Services: Long-Term Risk Assessment  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  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.