Financial Industry Competency Standards (FICS) · Financial Industry Competency Standards ... in...

Financial Industry Competency Standards (FICS)

Life Insurance: Relationship Management Job Family

The Institute of Banking and Finance Page 2 of 29 All Rights Reserved. 2008 – Version 1.0

Contents

Understanding the Competency Standards Overview of the FICS Framework and Key Components 03 Competency Standards 09 Range and Context 15

Understanding the Certification Requirements Certification Reference Table 18

Understanding the Training and Assessment Requirements Assessment Matrix

− Job Role IV 19 Curriculum and Learning Outcomes Table 23

Appendices 28


Overview of the FICS Framework and Key Components

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’.

Technical (Occupational) Competencies

Competency Unit 4

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Competency Unit 3

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Technical (Industry) Competencies

Competency Unit 6

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1

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2

Competency Unit 5

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0

Competency Unit 2

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Competency Unit 7

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COMPETENCY TYPES

Definition of performance criteria, range & context, evidence sources, and curriculum & learning outcomes for each competency element

Level 5

Level 4

Level 3

Level 6

Level 2

Level 1

For assigning degree of competency only for non-routine, unpredictable and

complex work activities

For assigning degree of competency only for

routine, procedural and non-complex work activities

Job Roles

Operates in an environment that comprises largely non-routine, unpredictable and complex work

activities with personal autonomy, accountability and supervisory responsibilities.

Competency Unit 1

Com

petenc

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ent 1

Com

petenc

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ent 2

Operates in an environment that comprises largely routine, procedural and non-complex work activities with limited personal autonomy,

accountability and supervisory responsibilities.

JOB FAMILY

Level 5

Level 4

Level 3

Level 6

Level 2

Level 1Deg

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Responsible for setting industry

segments competency standards

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Technical (Occupational) Competencies

Competency Unit 4

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Competency Unit 3

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Technical (Industry) Competencies

Competency Unit 6

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Competency Unit 5

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0

Competency Unit 2

Com

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Competency Unit 7

Com

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COMPETENCY TYPES

Definition of performance criteria, range & context, evidence sources, and curriculum & learning outcomes for each competency element

Level 5Level 5

Level 4Level 4

Level 3Level 3

Level 6Level 6

Level 2Level 2

Level 1Level 1

For assigning degree of competency only for non-routine, unpredictable and

complex work activities

For assigning degree of competency only for

routine, procedural and non-complex work activities

Job Roles

Operates in an environment that comprises largely non-routine, unpredictable and complex work

activities with personal autonomy, accountability and supervisory responsibilities.

Competency Unit 1

Com

petenc

y Elem

ent 1

Com

petenc

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ent 2

Operates in an environment that comprises largely routine, procedural and non-complex work activities with limited personal autonomy,

accountability and supervisory responsibilities.

JOB FAMILY

Level 5Level 5

Level 4Level 4

Level 3Level 3

Level 6Level 6

Level 2Level 2

Level 1Level 1Deg

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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 Competency Type

The FICS framework adopts two broad categories or types of competencies, namely Technical (Occupational) and Technical (Industry) Competencies.

a. Technical (Occupational) Competency

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.


b. Technical (Industry) Competency 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

1.4 Competency Unit

A Competency 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 Competency Element

Competency Elements are sub-divisions of a competency unit which describe a work activity or a behavioural demonstration that makes up a Competency Unit. A few Competency Elements is grouped together under one Competency Unit.

1.6 Degree of Competency

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 Competency.


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 3.

1.7 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 Competency 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.


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.


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 The focus of the assessment

Identify State Define

Knowledge and comprehension

Calculate Explain Describe Discuss Outline

Application and analysis

Distinguish Recommend Justify Critique Evaluate

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.


Overview Industry Segment: Life Insurance

Job Family: Relationship Management refers to the business function of acquiring and servicing clients through performing client needs analysis, developing recommendations and implementing solutions to help clients achieve their financial goals.

Competency Degree of Competency

Type Unit Element Role IV

1.1 Identify potential clients with a view of building relationships (Establish and define client-practitioner relationship)

1. Acquire Clients

1.2 Secure client’s consent to conduct a fact-find

4

2.1 Gather financial and non-financial client information (Gather data, including goals)

2.2 Evaluate client information, generate client risk profile, and determine suitable recommendation and life insurance products (Analyse and evaluate financial status)

2. Perform Client Needs Analysis, Develop and Implement Recommendation

2.3 Deliver recommendation, agree expectations and implement recommendation (Develop and present Recommendations; and Implement Recommendations)

4

3.1 Perform periodic review of client account (Review with client periodically)

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3. Service Client Account and Perform Client Administration 3.2 Service client needs and manage accounts to retain existing clients

4


Overview Industry Segment: Life Insurance


Competency Degree of Competency

Type Unit Element Role IV

4.1 Demonstrate understanding of general principles of insurance and insurance products 4. Acquire and Apply Life

Insurance Industry and Product Knowledge

4.2 Keep abreast of changes and developments in the life insurance industry and product knowledge

4

5.1 Identify and comply with legislative, regulatory and industry requirements

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5. Comply with Life Insurance Legislations, Regulations and Industry Codes of Practice 5.2 Keep abreast of changes of relevant laws and regulations and

understand its implications

4


Details Industry Segment: Life Insurance


Competency Performance Criteria describes what needs to be achieved to demonstrate competence. A competent person should successfully achieve the following:

Unit Element Role IV 1.1 Identify potential clients with a view of building relationships (Establish and define client-practitioner relationship)

• Source for new clients through a variety of initial client contact methods. • Start, nurture and build relationships with prospective clients, with a view of building trust leading to securing client account.

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1.2 Secure client’s consent to conduct a fact-find

• Convince client to start a relationship with the organisation - through the process of building rapport, fact finding and providing solutions, identifying and responding to objections and obtaining commitment to establish client/ practitioner relationship.

• Obtain the necessary client identification documents to complete the account opening process.

2.1 Gather financial and non-financial client information (Gather data, including goals)

• Obtain appropriate quantitative information and documents from client, including existing life insurance portfolio. • Discuss and draw out client's needs and priorities (short, medium and long term).

2.2 Evaluate client information, generate client risk profile, and determine suitable recommendation and life insurance products (Analyse and evaluate financial status)

• Analyse and evaluate client's information. Determine client's risk appetite, investment preferences, priorities and return expectations using the organisation’s prescribed tools and templates.

• Based on analysis findings, identify and evaluate alternative solutions and propose suitable life insurance products approved by the organisation in meeting the clients’ objectives.

• Develop recommendation to meet Client-Specific Needs.

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2.3 Deliver recommendation, agree expectations and implement recommendation (Develop and present recommendations; and implement recommendations)

• Communicate clearly, concisely, and in formats that match the needs of clients, the recommended strategies, benefits and risks- through the use of written, verbal, interpersonal, and media-related presentation skills/techniques.

• Select appropriate products and services in implementing the financial planning recommendation.





Unit Element Role IV 3.1 Perform periodic review of client account (Review with client periodically)

• Conduct periodic review on the relevance and adequacy of clients’ existing portfolio and update changes. • Update for changes in client's personal circumstances, financial status or needs, and confirming revisions with client if necessary. • Make recommendations to clients consistent with these changes.

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3.2 Service client needs and manage accounts to retain existing clients

• Participate in organisation's sales and client strategies and events. • Attend to client enquiries (via fax, phone-call, internet or branch visit) in a prompt, efficient and professional manner, addressing the issues or

channelling them to the relevant personnel. • Perform periodic client evaluation exercise for risk management and wealth accumulation needs to determine continual suitability of client’s current

portfolio. • Perform Policy Servicing activities and assist client in claim procedures and other insurance settlement.

4.1 Demonstrate understanding of general principles of insurance and insurance products

• Acquire a generic understanding of the life insurance industry • Identify the products applicable to the industry and work activity • Apply the knowledge of principles of life insurance and life insurance products to work effectively within the insurance industry

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4.2 Keep abreast of changes and developments in the life insurance industry and product knowledge

• Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends





Unit Element Role IV 5.1 Identify and comply with legislative, regulatory and industry requirements.

• 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

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5.2 Keep abreast of changes of relevant laws and regulations and understand its implications.

• Seek out and attend appropriate Continuing Certification Requirement programs, updates or other relevant materials to keep abreast of developments and trends.


Range and Context Industry Segment: Life Insurance


Range and Context

Client Contact Methods Client Identification Documents Life insurance products

• Networking activities • Referrals from existing clients • Cold calls / call centre • Marketing activities and organised events etc.

• Passport / Identification/Social Security Card • Driver's License • Income tax records • Payroll/salary records

• 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 • Investment-Linked Insurance Plan

Continuing Certification Requirement Legislations and Regulations

• Attendance at training programmes • Attendance at Seminars and Conferences • Writing articles • Develop and deliver training programmes. • e-learning

• Insurance Act (Cap 142) • Insurance (Amendment) Act 2003 • 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

• LIA Guidelines • Financial Advisers Act


Classes of Insurance and Applicable Laws and Regulations Industry Segment: Life Insurance


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) 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. 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 Income Tax Act


Classes of Insurance and Applicable Laws and Regulations Industry Segment: Life Insurance


Life 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

Dispute Resolution Applicable for ALL Roles Consumer Association of Singapore Financial Industry Disputes Resolution Centre Ltd


Certification Reference Table Industry Segment: Life Insurance


Role IV

Responsibility Responsible for performing a limited specialist and support role in business function. Has personal budget and bottom line responsibility 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.

Competency Units 1. Acquire clients 2. Perform client needs analysis, develop and implement recommendation 3. Service client account and perform client administration 4. Acquire and apply life insurance industry and product knowledge 5. Comply with life insurance legislations, regulations and industry codes of practice

Certification Requirements

In order to be awarded a financial services industry certification, the following is required:

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 be awarded the respective financial services 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 15 credit hours of Continuing Certification Requirements per annum in the relevant field


Assessment Matrix

Industry Segment: Life Insurance Job Family: Relationship Management Job Role: IV

Competency Assessment Evidence Guide

Type Unit Methodology

Instruments

Examples of evidence that provide guidance on whether competency standards are met.

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 acquiring client. Performance track records, appraisal reports, testimonials or work documents.

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 acquiring client.

1. Acquire Clients

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 acquiring client in training or in a simulation.

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Observation of candidate performing client needs analysis, developing and implementing recommendation. Performance track records, appraisal reports, testimonials or work documents.


Assessment Matrix




Instruments




Verbal responses from candidate relating past experiences of performing client needs analysis, developing and implementing recommendation.


Observation of candidates performing client needs analysis, developing and implementing recommendation in training or in a simulation.



Observation of candidate servicing client account and performing client administration on-the-job or in a simulation. Performance track records, appraisal reports, testimonials or work documents.

3. Service Client Account and Perform Client Administration



Verbal responses from candidate relating past experiences of servicing client account and performing client administration.


Assessment Matrix




Instruments



Observation of candidate servicing client account and performing client administration in training or in a simulation.

4. Acquire and Apply Life Insurance Industry and Product Knowledge

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: 1.0 hr

Written responses from candidate demonstrating application of financial services and Life Insurance industry and product knowledge.

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Y) 5. Comply with Life

Insurance Legislations, Regulations and Industry Codes of Practice.

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 responses from candidate demonstrating application of financial services and Life insurance legislations, regulations and industry codes of practice.


Assessment Matrix




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 Relationship Management Job Family and may be combined with a cluster of related competency units as listed below:

Estimated Assessment Time for full assessment

Individual Assessment (Technical Occupational) 1. Acquire Clients 2. Perform client needs analysis, develop and implement recommendation 3. Service client account and perform client administration

4.5 hrs (WPA) 3.0 hrs (RPL) 4.5 hrs (FTA)

Examination (Technical Industry) 4. Acquire and apply wealth management industry and product knowledge 5. Comply with wealth management legislations, regulations and industry codes of practice

2.5 hrs

Assessment Guide:

Total Estimated Assessment Time 5.5 to 7.0 hrs


Curriculum and Learning Outcomes Table Industry Segment:

Life Insurance Job Family: Relationship Management

Competency Unit:

1. Acquire Clients Degree of Competency:

4 Applicable for Role(s)

IV

Curriculum and Learning Outcomes:

1. Identify potential clients with a view of building relationships (Establish and define client-practitioner relationship) Upon completion, the candidate should be able to: • Explain the different tools of client sourcing, including cold-calling,

obtaining referrals from clients, and organising different networking activities, organising client events, seminars etc

• Describe different approaches in targeting clients at each stage of the lifecycle and in different wealth segments.

• Describe how client needs change at each stage of the lifecycle, applying concepts and theories of human behaviour.

• Explain the nature and scope of client relationship management, focusing on the value proposition and the role of the Practitioner.

• Explain the importance of active-listening skills as a means of identifying client background information, preferences, and to identifying opportunities for matching needs to solutions.

• Explain the importance of asking open-ended questions as a means of information gathering

• State the importance of the first meeting with the prospect, and the key objectives and outcomes required from the meeting, from the organisation's perspective.

2. Secure client’s consent to conduct a fact-find Upon completion, the candidate should be able to: • Explain the process of delivering the value proposition to the client in a

manner which understands the client’s motivations and allays his concerns • Describe negotiation techniques used in persuading the client and

responding to objections, in coming to agreement and commitment in establishing the relationship.

• Explain the various questioning techniques to understand the thoughts of the client, and listening to answers to obtain the information needed to establish a positive client/ practitioner relationship.




Competency Unit:


Degree of Competency:


IV


1. Gather financial and non-financial client information (Gather data, including goals) Upon completion, the candidate should be able to: • State the types of quantitative information and documents, including

existing life insurance portfolio and the types of qualitative information which should be requested / inquired from clients to understand their needs and priorities.

• Identify strengths and weaknesses in client’s situation and determine opportunities for problem solving.

• Evaluate client's information, including dependants and special circumstances (such as divorce, special needs, business ownership, severance packages, etc.) and address those special circumstances within the context of the plan.

• Describe client's risk appetite, investment preferences and returns expectation.

2. Evaluate client information, generate client risk profile, and determine suitable life insurance products (Analyse and evaluate financial status) Upon completion, the candidate should be able to: • Analyse and evaluate client's information, including dependants, special

circumstances (such as divorce, special needs, business ownership, severance packages, etc.) and address those special circumstances within the context of the plan.

• Determine client's risk appetite, investment preferences and returns expectation.

• Explain the characteristics of different life insurance products including risks, returns, and application.

• Identify and evaluate the various life insurance products approved by the organisation in meeting the clients’ objectives based on goals, risk tolerance and client preferences.

3. Deliver recommendation, agree expectations and implement recommendation (Develop and present recommendations; and implement recommendations)

Upon completion, the candidate should be able to: • Communicate the recommended strategies, benefits and risks through the

use of written, verbal, interpersonal, and media-related presentation skills/techniques.

• Confirm acceptance of the recommendation. • Define and agree on implementation responsibilities and timeframes for

review and re-evaluation of the financial plan with the client, following acceptance of financial planning recommendation.

• Select appropriate products and services in implementing the financial planning recommendation.




Competency Unit:

3. Service Client Account and Perform Client Administration Degree of Competency:


IV


1. Perform periodic review of client account (Review with client periodically) Upon completion, the candidate should be able to: • Explain the importance of conducting periodic review on the relevance

and adequacy of clients’ existing portfolios and holdings. • Identify and analyse changes in economic and financial conditions and its

impact on clients' portfolio, either independently or using available research publications.

• Make recommendations to clients consistent with these changes.

2. Service client needs and manage accounts to retain existing clients Upon completion, the candidate should be able to: • List out the organisation's various sales and client servicing practices to

maintain service quality. • Explain the importance of recording client enquiries and ensuring that

these enquiries (via fax, phone-call, internet or branch visit) are attended to in a prompt, efficient and professional manner, addressing the issues or channelling them to the relevant personnel.

• State the importance of maintaining regular communication with clients (based on their preferences), updating them of economic changes which may impact their account as well as new investment opportunities, through providing research materials and product information.

• Perform periodic client evaluation exercise for risk management and wealth accumulation to determine continual suitability of client’s existing portfolio.

• State the different types of policy servicing activities (eg: update policy summary, assist in claim procedures and other insurance settlement.)




Competency Unit:

4. Acquire and Apply Life Insurance Industry and Product Knowledge



IV


1. Demonstrate Understanding of General Principles of Insurance and Insurance Products

Upon completion, the candidate should be able to: • Financial Services Industry and Knowledge

- Discuss generic understanding of the financial services industry knowledge including economic and political climate impacting the financial services industry.

- Provide an overview of the Singapore Financial System and its major functions and the roles of major players and participants in the financial services industry.

- Describe the Legislative and Regulatory Structure governing the financial services industry.

- Explain the role of the Government and the Monetary Authority of Singapore in - regulation, taxation, monetary policy, etc.

• Insurance Market and its Relation to the Financial Services Environment

- Outline the way in which the insurance market is structured in Singapore.

- State the various methods and channels for distribution of insurance products.

- Describe the types of customers (personal, commercial) and discuss the insurance needs of each of these customers.

• Types of Insurance - Identify the various life insurance products. - Outline the key features and types of coverage provided within the main

classes of life insurance. (see details in Appendix) 2. Keep Abreast of Changes and Developments in the Life Insurance Industry

and Product Knowledge Upon completion, the candidate should be able to: • Identify changes and developments in the life insurance 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 life insurance industry

• Seek out and attend appropriate professional development programs, updates or other relevant materials to keep abreast of developments and trends




Competency Unit:

5. Comply with Life Insurance Legislations, Regulations and Industry Codes of Practice



IV


1. Identify and Comply with Legislative, Regulatory and Industry Requirements

Upon completion, the candidate should be able to: • Regulatory Framework

- Outline the approach of the MAS in supervising institutions and individuals – authorisation and licensing, regulated activities and investment products, discipline and enforcement, training and competence requirements.

- State the regulations and legislation applicable to the financial services industry in Singapore – Securities and Futures Act, Financial Advisers Act, Banking Act, Insurance Act, MAS Act, MAS Notices, MAS Guidelines and Circulars, Companies Act, Anti-Money Laundering Regulations, etc.

- Identify trends and developments in the regulatory framework in current terms.

- Discuss how these trends and developments in the regulatory framework affect the life insurance industry.

• Legal Principles - Describe the functions of insurance regulations, administrative rules and

statutory requirements. - Explain the law of contract, tort and the concept of agency. - Discuss the application of the following legal principles to insurance

business. insurable interest utmost good faith indemnity proximate clause subrogation

contribution misrepresentation and non-disclosure warranties and conditions assignment etc.

• Legislation Specific to Insurance - Discuss the impact of the following legislative and regulatory

requirements: Insurance Act (Cap 142) and its amendments MAS Notices To All Insurers MAS Circulars to Insurance Companies MAS Guidelines for Insurance Companies

- Discuss the various international laws and regulations impacting on the insurance business (see details in Classes of Insurance and Applicable laws & regulations)

- LIA Guidelines 2. Keep Abreast of Changes of Relevant Laws and Regulations and

Understand its Implications Upon completion, the candidate should be able to: • Explain how knowledge on the regulatory and legal environment is kept

updated to keep abreast of developments and trends. • Seek out and attend appropriate training programs, updates or other

relevant materials to keep abreast of developments and trends.


Appendix 1: Guidelines on Roles and Responsibilities

Role Job Responsibility Work Context I Responsible for performing a limited range of work activities under immediate supervision comprising basic tasks

undertaken at the entry-level. Typically no collaboration with co-workers. No supervisory responsibilities. Minimal personal accountability and decision-making authority, with no risk mgmt or bottom-line responsibility.

II Responsible for performing a broad range of work activities. Limited collaboration with co-workers. Some supervisory responsibilities. Limited individual responsibility, personal accountability, decision-making authority, risk mgmt but no bottom-line

responsibility. III Responsible for performing a diverse range of work activities.

Some collaboration with co-workers. High level of supervisory responsibilities. Some individual responsibility, personal accountability, decision-making authority, risk mgmt but no bottom-line

responsibility.

Operates in an environment that comprises largely routine, procedural and non-complex work activities with limited personal autonomy, accountability and supervisory responsibilities.

IV Responsible for performing a limited range of work activities. Limited collaboration with co-workers and supervisors. May have some supervisory responsibilities. Limited individual responsibility, personal accountability, decision-making authority, risk mgmt and may have limited

bottom-line responsibility. V Responsible for performing a broad range of work activities, and also role of a Specialist performing professional work.

Some collaboration with co-workers and superiors. High level of supervisory responsibilities for a specific activity or a group of related activities. However, supervisory

responsibilities could be limited for a Specialist role. Substantial degree of individual responsibility, personal accountability, decision-making authority, risk mgmt and bottom-

line responsibility. VI Responsible for performing a diverse and often demanding range of work activities. This role typically has tactical

(administering budgets and managing staff) as well as strategic (setting strategic direction and aligning the Unit’s objectives and risk profile with corporate goals) responsibilities.

High level of collaboration with co-workers. Supervisory responsibilities for day-to-day operations of a business unit. High degree of individual responsibility, personal accountability, decision-making authority, risk mgmt and fully

responsible for business unit’s bottom-line.

Operates in an environment that comprises largely non-routine, unpredictable and complex work activities with personal autonomy, accountability and supervisory responsibilities.


Appendix 2: Definitions on Degrees of Competency

Degree Descriptors

1 Demonstrate competence at an entry level in the context of routine, procedural and predictable work activities.

2 Demonstrate competence at an intermediate level in the context of routine, procedural and predictable work activities.

3 Demonstrate competence at an advance level in the context of routine, non-complex and predictable work activities.

4 Demonstrate competence at a foundation level in the context of non-routine, complex and predictable work activities.

5 Demonstrate competence at a proficient level in the context of non-routine, complex and unpredictable work activities.

6 Demonstrate competence at an expert level in the context of non-routine, complex and unpredictable work activities.


Appendix 3: Description of Operative Verbs Used in Learning Outcome Statements Analyze: To study or determine the nature and relationship of the parts of by analysis. Appraise: To judge and analyze the worth, significance, or status of. Arrange: To put into a proper order or into a correct or suitable sequence, relationship, or adjustment. Calculate: To ascertain or determine by mathematical processes. Cite: To quote by way of evidence, authority, or proof. Classify: To arrange in classes; to assign to a category. Comment: To observe, remark, or express an opinion or attitude concerning what has been seen or heard about the subject at hand. Compare: To examine the character or qualities of, for the primary purpose of discovering resemblances. Compute: To determine, especially by mathematical means. Conclude: To make a decision about; to reach a logically necessary end by reasoning. Construct: To create by organizing ideas or concepts logically and coherently. Contrast: To compare in respect to differences. Convert: To change from one form or function to another. Create: To produce or bring about by a course of action or imaginative skill. Define: To set forth the meaning of; specifically, to formulate a definition of. Demonstrate: To prove or make clear by reasoning or evidence; to illustrate and explain, especially with examples. Describe: To transmit a mental image, an impression, or an understanding of the nature and characteristics of. Design: To conceive or plan out in the mind. Determine: To come to a decision as the result of investigation or reasoning; to settle or decide by choice among alternatives or possibilities. Differentiate: To mark or show a difference in; to develop different characteristics in. Discuss: To discourse about through reasoning or argument; to present in detail. Distinguish: To perceive a difference in; to separate into kinds, classes, or categories.

Draft: To draw up, compose, prepare, frame. Estimate: To judge the value, worth, or significance of. Evaluate: To determine or fix the value of; to determine the significance or worth of, usually by careful appraisal and study. Explain: To give the meaning or significance of; to provide an understanding of; to give the reason for or cause of. Formulate: To put into a systematized statement or expression; to prepare according to a formula. Give: To yield or furnish as a product, consequence, or effect; to offer for the consideration, acceptance, or use of another. Identify: To establish the identity of; to show or prove the sameness of. Illustrate: To make clear, especially by giving examples or instances. Indicate: To point out or point to with more or less exactness; to show or make known with a fair degree of certainty. Infer: To derive as a conclusion from factors or premises. Interpret: To explain or tell the meaning of; to present in understandable terms. Judge: To form an opinion about through careful weighing of evidence and testing of premises. Justify: To prove or show to be valid, sound, or conforming to fact or reason; to furnish grounds or evidence for. List: To enumerate. Match: To pair up or put in a set as possessing equal or harmonizing attributes. Modify: To make minor changes to give a new orientation to or to serve a new end. Name: To mention or identify by name. Order: To put in order; to arrange. Outline: To indicate the principal features or different parts of. Predict: To declare in advance; to foretell on the basis of observation, experience, or reason. Prepare: To put into written form; to draw up. Present: To offer or convey by way of message; to furnish or provide.

Recommend: To bring forward as being fit or worthy; to indicate as being one’s choice for something or as otherwise having one’s approval or support. Record: To set down in writing; to make an answer. Relate: To show or establish logical or causal connection between. Respond: To say or write something in return; to make an answer. Review: To make a formal or official examination of the state of; to go over or examine critically or deliberately. Revise: To make a new, amended, improved, or up-to-date version of. Show: To set forth in a statement, account, or description; to make evident or clear. Solve: To find a solution for a problem. State: To express in words. Summarize: To tell in or reduce to a summary. Support: To provide with verification, corroboration, or substantiation.

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