ANZIIF Professional Certificate in Insurance

Historical claims are only one input. New crews and changed activities may alter hazard, accumulation and liability exposure. Gather current exposure details, verify subcontractor arrangements and insurance, and assess whether controls match the work.

Apply it: A broker requests renewal terms for a small contractor. The prior year had low claims, but the insured has added two subcontractor crews and changed the work mix

Authority has both financial limits and conditions. The flood referral rule remains binding even when the sum insured is within the dollar limit.

Compare current activities, turnover, locations, controls and claims with the expiring risk; a quiet prior year does not offset a material exposure change.

Stable frequency with rising severity points to a change in cost per claim, mix, repair inflation or settlement practice. Segment the drivers, review a sample of files and compare case estimates with paid outcomes.

Apply it: A storm portfolio shows stable claim counts but a 22% rise in average paid severity

A missing receipt is not automatically proof that a loss did not occur. Explain what information is needed and consider alternative evidence such as bank records, photographs, warranties or supplier history.

A defensible claim decision links the reported event to policy terms and reliable evidence. Establish the timeline, insured interest, cause, damage, mitigation and any relevant limits or exclusions.

The schedule is an important starting point, but the full wording and endorsements determine how locations and temporary storage are treated.

Apply it: A small business owner asks whether stock kept in a temporary storage unit is insured. The policy schedule lists only the shop address

A portfolio segment has expected claims of $48,000 and expenses of $12,000. If a simple pricing model targets a 25% margin on premium, solve P = 60,000 + 0.25P.

Delegated authority combines a monetary ceiling with eligibility rules, exclusions, referrals and documentation duties. Check every condition before binding or settling.

The adviser should resolve the inconsistency rather than repeat a potentially misleading description. Follow the relevant disclosure and escalation process.

Apply it: A customer describes a home business as occasional, but the adviser knows stock is stored there every day and staff visit weekly

A policy number alone does not establish identity or authority. Follow the organisation’s verification process, confirm the person’s entitlement, and use an approved secure channel.

A useful technical rate separates expected claims, expenses, target margin and uncertainty. Segment by credible risk characteristics, test data quality and show sensitivities to inflation, frequency and severity.

Segment claim frequency and severity, validate development period, then isolate repair inflation before recalibrating expected loss cost for renewal pricing.

Apply it: Storm claim counts stay flat while average repair severity rises 22%. Segment by region and trade, validate inflation, then test rate actions against customer retention.

Keep expenses and target margin separate from expected claims when solving premium, or the indicated rate may double-count cost and distort decisions.

Stress inflation and mix changes, then compare repricing, restriction and monitoring against risk appetite, retention impact and customer affordability together.

Clarify material facts before placement and show how they affect hazard selection, terms and premium; unsupported assumptions weaken advice quality.

Apply it: A business owner asks about stock at a second site and a colleague requests the policy schedule. Verify material facts and authority, then share only approved information securely.

Verify identity and authority before policy discussion; disclosure to an unauthorised colleague creates privacy and conduct risk for the firm.

Use an approved secure channel and disclose only what the request needs; limit copies and record the permitted purpose for audit.