LEARN. GROW. SUCCEED.
Class of Business Training: Long-Term Insurance
Build practical knowledge of assistance, life risk, life investment, fund, sinking fund and reinsurance policies within South Africa’s Long-Term Insurance Class of Business.
About the Long-Term Insurance COB course
The Class of Business Training: Long-Term Insurance course provides a structured introduction to the main categories of long-term insurance policies recognised within the South African financial services environment.
To begin with, learners examine assistance policies and life risk policies. Thereafter, the course explains life investment, fund and sinking fund policies. In addition, learners explore the role of reinsurance and the effect of economic cycles on insurance business.
Finally, the course considers legislation, taxation and the industry codes that influence the design, marketing and servicing of long-term insurance products. Consequently, learners develop a broader understanding of both the products and the environment in which financial services are rendered.
What is Long-Term Insurance Class of Business training?
More specifically, Long-Term Insurance COB training develops knowledge of the general characteristics, risks, costs, market participants, legislation and suitability considerations associated with long-term insurance products.
In this regard, Annexure Three of Board Notice 194 of 2017 identifies Long-Term Insurance as Class 3. Its subclasses include assistance, life risk, life investment, fund, sinking fund and long-term reinsurance policies.
Long-Term Insurance COB training under Board Notice 194
Why Class of Business training matters
Board Notice 194 of 2017 contains the Determination of Fit and Proper Requirements for Financial Services Providers. These requirements include competence standards for FSPs, key individuals and representatives.
Accordingly, subject to the application provisions and exemptions in the Determination, relevant persons must complete adequate and appropriate COB training before rendering, managing or overseeing financial services in the applicable class.
Furthermore, COB training is broader than product-specific training. In practice, it provides an understanding of the overall product category rather than only one supplier’s product.
Read Board Notice 194 of 2017What you will learn in this Long-Term Insurance course
Upon completion, learners should understand the main Long-Term Insurance subclasses and the wider legal, economic and industry environment.
Explain assistance policies
Firstly, describe the purpose, features, benefits, limitations and practical use of assistance policies.
Understand life risk policies
Secondly, explain how life risk policies protect against events such as death, disability or severe illness.
Understand life investment policies
In addition, explain investment-linked insurance products, policy values, charges, risks and client outcomes.
Describe fund policies
Similarly, understand insurance policies connected to funds and the role played by insurers and fund structures.
Explain sinking fund policies
Thereafter, describe the purpose and general characteristics of sinking fund arrangements.
Understand reinsurance
Furthermore, explain how insurers transfer or share insurance risk through reinsurance arrangements.
Assess economic influences
At the same time, recognise how inflation, interest rates and business cycles may affect insurers, policies and client outcomes.
Apply legislation and tax principles
Moreover, understand the main legal and tax considerations relevant to long-term insurance policies.
Recognise industry standards
Finally, explain how applicable codes and standards support fair treatment and responsible financial services.
The six subclasses covered by this course
In particular, the course deals with the six Long-Term Insurance subclasses listed in Annexure Three of Board Notice 194 of 2017.
Assistance Policy
This subclass covers policies designed to provide defined assistance benefits, often linked to funeral and related needs.
Life Risk Policy
By contrast, life risk policies provide benefits when an insured life event, such as death or disability, occurs.
Life Investment Policy
Meanwhile, these policies include an investment component whose value or benefits may depend on investment performance.
Fund Policy
In this case, long-term insurance arrangements are issued to or connected with a fund and its benefit obligations.
Sinking Fund Policy
Generally, these policies are structured to accumulate or provide capital according to agreed policy terms.
Long-Term Reinsurance Policy
Lastly, reinsurance arrangements allow an insurer to transfer or share long-term insurance risk with another insurer.
Nine Long-Term Insurance learning modules
For the best learning experience, work through each module in sequence. In addition, every module includes focused topics and a knowledge quiz.
Assistance Policy
To begin with, explore assistance-policy features, benefits, market participants, risks and practical client considerations.
Life Risk Policy
Next, understand risk events, life cover, underwriting, claims, exclusions and client-protection considerations.
Life Investment Policy
Thereafter, examine investment-linked policies, returns, charges, risk, liquidity and suitability for different clients.
Fund Policy
In addition, learn how fund policies operate and how insurers, funds, employers, members and beneficiaries may interact.
Sinking Fund Policy
Subsequently, understand the structure, purpose and principal characteristics of sinking fund policies.
Reinsurance Policy
Moreover, explore why insurers use reinsurance and how risk may be transferred or shared.
Business Cycles
At this stage, examine how changing economic conditions may affect insurers, investments, policy values and customer behaviour.
Impact of Legislation and Tax on Life Insurance Policies
Furthermore, understand the main legal and tax considerations that influence policy design, advice, servicing and benefits.
The Applicable Industry Codes
Finally, explore the role of industry standards and codes in promoting professional conduct and fair customer outcomes.
Designed for Long-Term Insurance roles
Financial services representatives
This course is suitable for representatives who render financial services in relevant Long-Term Insurance product categories.
Key individuals
It also supports key individuals who manage or oversee financial services relating to applicable Long-Term Insurance classes.
Compliance professionals
Furthermore, compliance personnel can use the course when monitoring competence, onboarding, supervision and training records.
Insurance support teams
Finally, it is relevant to staff who support insurance advice, intermediary services, servicing, claims or policy administration.
Your online learning journey
Important Long-Term Insurance COB facts
Long-Term Insurance contains several subclasses
Importantly, completing training for one subclass does not automatically prove competence in every other Long-Term Insurance subclass.
COB training is broader than one insurer’s product
In other words, COB training covers the general product category, while product-specific training addresses a particular product’s terms, costs, risks and target market.
Economic conditions affect policies differently
For example, interest rates, inflation and investment markets may have a greater direct effect on investment-linked policies than on pure risk policies.
Training must be documented
Therefore, FSPs must maintain suitable evidence of completed COB and product-specific training in the competence register.
Start your Long-Term Insurance COB training
- Online, self-paced access through LearnDash.
- Nine structured learning modules.
- Thirty-one topics and nine module quizzes.
- Downloadable Long-Term Insurance learner manual.
- Progress tracking through the learning platform.
Questions about Long-Term Insurance COB training
What is Long-Term Insurance COB training?
In essence, it is Class of Business training covering the general characteristics, risks, costs, legislation, market participants and suitability considerations relevant to Long-Term Insurance.
Which Long-Term Insurance subclasses are covered?
Specifically, the course covers assistance, life risk, life investment, fund, sinking fund and long-term reinsurance policies.
Is this the same as product-specific training?
No. COB training covers a broader class or subclass of financial products. By comparison, product-specific training focuses on the detailed features of a particular supplier’s product.
Can learners download the course material?
Yes. For convenience, learners can download the Long-Term Insurance COB Class 3 Manual directly from this course page.
How many modules does the course contain?
Altogether, the course contains nine modules, thirty-one learning topics and nine module quizzes.
Who must determine whether COB training is required?
Ultimately, the FSP must assess each person’s role, approved or appointed product categories, relevant class of business and any applicable exemption or transitional provision.
Build your Long-Term Insurance product knowledge
To get started, enrol online, download the learner manual and work through all nine modules at your own pace.
You must log in and have started this course to submit a review.