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

Apply knowledge of Short Term Insurance to reinsurance 
SAQA US ID UNIT STANDARD TITLE
120136  Apply knowledge of Short Term Insurance to reinsurance 
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  5 
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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10362  Explain reinsurance as it is applied in Short Term insurance  Level 4  NQF Level 04  3   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard provides the fundamental background to reinsurance for learners who work in Short Term insurance or reinsurance. It will be useful for Insurance and Reinsurance Intermediaries, Underwriters, Underwriting Managers and Agents, Associate Underwriters in Reinsurance organisations, and learners in Banks who arrange financial protection.

The qualifying learner is capable of:
  • Explaining the role of reinsurance.
  • Describing the reinsurance market.
  • Explaining the different types of reinsurance.
  • Assessing the need for reinsurance.
  • Explaining the risk placing process. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 3 and that they have a fundamental knowledge of Short Term Insurance. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Accepting companies include, but re not limited to insurers and reinsurers.
  • Types of reinsurance markets are local, overseas, registered/admitted and non- registered/non- admitted.
  • Avenues for placing reinsurance include direct and indirect via reinsurance intermediaries.
  • Documents required in placing reinsurance include, but are not limited to, underwriting information, retention and reinsurance, capacity requirements.
  • Administration procedures include, but are not limited to, a reinsurance slip and bordereau. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the role of reinsurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The role of reinsurance in the insurance process is explained with reference to spreading the risk, providing capacity, financial advantage, financial stability and protection against catastrophic loss events. 

    ASSESSMENT CRITERION 2 
    The concept of a ceding company is explained with examples. 

    ASSESSMENT CRITERION 3 
    The concept of an accepting company is explained with examples. 

    ASSESSMENT CRITERION 4 
    The concept of retrocession is explained with examples. 

    ASSESSMENT CRITERION 5 
    The relationship between all parties in reinsurance is demonstrated graphically. 

    SPECIFIC OUTCOME 2 
    Describe the reinsurance market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The different types of reinsurance markets are explained with examples. 

    ASSESSMENT CRITERION 2 
    The different avenues for placing reinsurance are named with examples. 

    ASSESSMENT CRITERION 3 
    Reinsurance facilities available to insurers are investigated for three case studies. 

    ASSESSMENT CRITERION 4 
    Ceding opportunities are investigated for a specific reinsurer. 

    ASSESSMENT CRITERION 5 
    The concepts of admitted and non-admitted reinsurers are explained and an indication is given of the implications of using a non-admitted reinsurer. 

    SPECIFIC OUTCOME 3 
    Explain the different types of reinsurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The difference between Treaty and Facultative reinsurance is explained in terms of their use. 

    ASSESSMENT CRITERION 2 
    The concepts of Proportional and Non-proportional reinsurance are described with examples. 

    ASSESSMENT CRITERION 3 
    The clauses in a Treaty wording between an insurer and reinsurer are analysed to determine the Proportional and non- proportional reinsurance. 

    SPECIFIC OUTCOME 4 
    Assess the need for reinsurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Factors that are considered in analysing the need for reinsurance of a risk are identified and an indication is given as to why each factor is important. 

    ASSESSMENT CRITERION 2 
    Three insured risks are analysed and a decision is made and supported as to the best reinsurance cover. 

    SPECIFIC OUTCOME 5 
    Explain the risk placing process. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The process followed by the insurer in presenting an offer to the reinsurer is explained with reference to the required documentation. 

    ASSESSMENT CRITERION 2 
    A Reinsurers statement of acceptance is analysed to determine terms and conditions. 

    ASSESSMENT CRITERION 3 
    The administration procedures required in accepting a risk are explained for a selected reinsurer. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

    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 in which responses show that responsible decisions have been made in making and supporting a decision on the reinsurance required to cover a risk. 

    UNIT STANDARD CCFO COLLECTING 
    The learner can collect, organise and evaluate information investigating the facilities available to insurers and ceding options for reinsurers. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner can communicate effectively explaining the role of reinsurers and analysing Treaty Wordings and clauses. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner can demonstrate an understanding of the world as a set of related systems by explaining the role of reinsurance in spreading the risk. 

    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 10362, ' Explain reinsurance as it is applied in Short Term insurance ', Level 4, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-07-30  As per Learning Programmes recorded against this Qual 
    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.
     
    1. BRC Solutions (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd 
    3. De Vries Management & Training Services cc 
    4. Faisit (Pty) Ltd 
    5. Ripple Effect 4 (Pty) Ltd 
    6. The Graduate Institute of Financial Sciences (Pty) Ltd 


    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.