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

Demonstrate an understanding of the structure of the insurance sector in South Africa 
SAQA US ID UNIT STANDARD TITLE
8077  Demonstrate an understanding of the structure of the insurance sector in South Africa 
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 2  NQF Level 02  8 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2003-12-03  2004-08-11  SAQA 1351/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2005-08-11   2008-08-11  

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
114954  Explain the structure of the insurance and investment sub-sector in South Africa  Level 2  NQF Level 02  5   

PURPOSE OF THE UNIT STANDARD 
This unit standard provides a broad introduction to the financial services industry and the insurance sector. It is the starting point for a learner in insurance. The focus is knowledge, skills, values and attitudes in relation to the learner`s own context and experience of the world of work.

The qualifying learner is capable of:
  • Understanding the structure of the insurance industry in South Africa.
  • Recognising the role played by Lloyd`s of London.
  • Identifying market associations within the industry.
  • Understanding the purpose of reinsurance.
  • Identifying some of the professional insurance associations operating in the sector 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should either:
  • Hold a GETC or equivalent qualification. Or
  • Be competent in communication and mathematical literacy NQF level 1 
    		•

    UNIT STANDARD RANGE 
    The scope of this unit standard is

    1.The 10 sub-sectors of the insurance industry: Short Term; Long Term, Retirement Funding, Healthcare Benefit Administration, Trust Companies, Funeral Insurance, Sectorial Intermediaries, Financial Advisors, Re-insurance, Unit Trusts, Risk Management and Asset Management.

    2.The professional groupings; South African Insurance Association (SAIA), South African Financial Services Intermediaries Association (SAFSIA), Life Offices Association of South Africa (LOA), South African Special Risks Association (SASRIA), Board of Health Care Funders` (BHF), Insurance Brokers` Council (IBC) and the Association of Unit Trusts (AUT) as some of the professional associations that exist in the South African insurance industry. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the structure of the insurance industry in South Africa. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The sub-sectors in the insurance industry are named and an indication is given of the kind of risks and services in each sub-sector. 

    ASSESSMENT CRITERION 2 
    2. Three different players are identified in the insurance industry. 

    ASSESSMENT CRITERION 3 
    3. Market associations among the major insurance groups are named and illustrated visually to show the links. 

    ASSESSMENT CRITERION 4 
    4. The term Proprietary Insurance Company is explained with examples. 

    ASSESSMENT CRITERION 5 
    5. The concept of an intermediary is understood and a minimum of three different types of intermediary are identified with examples of each. 

    ASSESSMENT CRITERION 6 
    6. The role of the intermediary is outlined in relation to the service provided to the client and the industry. 

    SPECIFIC OUTCOME 2 
    Know and understand the purpose and structure of Lloyd`s of London. 
    OUTCOME NOTES 
    Know and understand the purpose and structure of Lloyd`s of London and its place in the South African Insurance market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The history of Lloyd`s of London is researched and presented as a brief report. 

    ASSESSMENT CRITERION 2 
    2. The purpose of a Lloyd`s syndicate is explained with an example. 

    ASSESSMENT CRITERION 3 
    3. A list is compiled indicating the duties of the Council of Lloyd`s. 

    ASSESSMENT CRITERION 4 
    4. The procedure to be followed by a Lloyd`s broker, in order to place a risk at Lloyd`s, is outlined. Reasons why the procedure is important are included in the explanation. 

    SPECIFIC OUTCOME 3 
    Identify the professional associations that exist in the insurance industry in South Africa. 
    OUTCOME NOTES 
    Identify some of the professional associations that exist in the insurance industry in South Africa. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The role of three of the professional groupings in the insurance industry are identified and an explanation is given for the existence of each association. 

    ASSESSMENT CRITERION 2 
    2. The background to the formation of one of the professional associations is outlined with a description of its current work in a particular line of business. 

    ASSESSMENT CRITERION 3 
    3. Information about at least one of the associations is accessed from its Website or insurance industry publication. 

    ASSESSMENT CRITERION 4 
    4. The benefits to be had from belonging to a selected professional association are outlined from the point of view of the insurance company and the employee. 

    SPECIFIC OUTCOME 4 
    Know and understand the purpose of a reinsurance company. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The need for reinsurance is known and understood and an explanation is given for the purpose of this type of insurance. 

    ASSESSMENT CRITERION 2 
    2. Three examples of risk that can be reinsured are named and reasons are identified to explain why insurance companies buy reinsurance for those risks. 

    ASSESSMENT CRITERION 3 
    3. The term facultative reinsurance is understood at a basic level and is used in the correct context. 

    ASSESSMENT CRITERION 4 
    4. The term treaty reinsurance is understood at a basic level and is used in the correct context. 


    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 
    1. Short-term, Long-term, Retirement Funding, Healthcare Benefits Administration, Trust Companies, Funeral Insurance, Sectorial Intermediaries, Financial Advisors, Re-Insurance, Unit Trusts, Risk Management and Asset Management as the 10 sub-sectors of the insurance industry.

    2. Services Intermediaries Association (SAFSIA), Life Offices Association of South Africa (LOA), South African Special Risks Association (SASRIA), Board of Health Care Funders (BHF), Insurance Brokers` Council (IBC) and the Association of Unit Trusts (AUT) as some of the professional associations that exist in the South African insurance industry. 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    CRITICAL CROSS FIELD and DEVELOPMENTAL OUTCOMES:

    This unit standard supports in particular, the following critical cross field outcomes at unit standard level:


    1.The learner is able to collect information from the Internet or other sources, organise and evaluate information by analysing the benefits of belonging to a Professional Association as an insurance company or as an employee of an insurance company.

    2.The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentations when explaining the structure of the insurance industry and the purpose of reinsurance.

    3. The learner is able to use technology effectively when accessing information from the Internet or similar publications to identify and describe the activities and benefits offered by a professional association. 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect information from the Internet or other sources, organise and evaluate information by analysing the benefits of belonging to a Professional Association as an insurance company or as an employee of an insurance company. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentations when explaining the structure of the insurance industry and the purpose of reinsurance. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use technology effectively when accessing information from the Internet or similar publications to identify and describe the activities and benefits offered by a professional association. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by u.s. 114954, which is "Explain the structure of the insurance and investment sub-sector in South Africa", 5c rcredits, NQF Level L2 , as from 11 August 2004. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  14657   National Certificate: Insurance Administration  Level 2  NQF Level 02  Passed the End Date -
    Status was "Registered"     		 2004-04-18  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.