There are several certifications that insurance professionals in Australia can earn to advance their careers. One of the many designations or certifications is the Diploma in Insurance Broking.
As with many other insurance certifications, the Diploma in Insurance Broking has its own set of requirements, benefits, and costs. In this article, Insurance Business discusses these, and many other important topics related to this qualification.
Formally known as the FNS51220 Diploma of Insurance Broking, this qualification is meant to equip individuals with the necessary knowledge and skills to launch a career in insurance broking in Australia.
The Diploma in Insurance Broking is well-suited to insurance brokers who operate in various types of organisations. This certification is very useful to brokers who provide advice to retail, business, or large corporate clients, especially in the general and life sectors of the insurance industry.
What this course does is provide students with a more holistic view of broking for general insurance. The knowledge students gain also enables them to apply technical solutions to complex problems, do research, apply initiative, and evaluate their work.
The Diploma is also meant to provide an alternative path to becoming an insurance broker. Those who do not wish to obtain a college degree can obtain the Diploma instead.
They can then earn their Certificate III in Insurance Broking in Australia, then apply for the Australian Financial Services Licence (AFSL) at the Australian Securities and Investments Commission (ASIC). Note that the Diploma can also equip students with the skills and knowledge necessary to apply for entry-level jobs at insurance companies.
Certifications like this have specific eligibility requirements. Those aspiring to obtain the Diploma in Insurance Broking must meet the following criteria:
The Diploma of Insurance Broking covers essential knowledge and skills for insurance brokers. And to successfully complete the Diploma, students must earn 11 units of competency. Seven of these units are core units and four are electives.
The Diploma is suited for financial services professionals working to become an insurance broker in Australia or for current insurance brokers looking to upskill and update their credentials. Students can expect to gain useful knowledge about the insurance industry, and insurance products and services.
Core courses
According to the Australian government website, these are the seven core courses students must take:
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Course number |
Course description |
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Provide advice in insurance broking |
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Meet compliance requirements relating to insurance broking |
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Deliver insurance broking services |
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Implement changes to insurance programs of broking clients |
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Prepare submissions for new insurance broking business |
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Manage complex risk portfolios for insurance broking clients |
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Manage handling and settlement of routine insurance claims for retail clients |
Elective courses
Note that students need only to pick four courses from these different areas:
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Course number |
Course description |
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Negotiate complex claims settlement for insurance broking clients |
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Analyse insurance claims |
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Course number |
Course description |
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Identify and evaluate marketing opportunities |
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Plan and interpret market research |
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Manage organisational customer service |
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Manage premium customer relationships |
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Apply and maintain knowledge of financial products and services |
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Identify and apply complex ethical decision making to workplace situations |
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Apply ethical frameworks and principles to make and act upon decisions |
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Apply advanced techniques to provide financial products and services |
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Course number |
Course description |
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Manage budgets and financial plans |
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Course number |
Course description |
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Analyse and present research information |
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Course number |
Course description |
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Develop and monitor processes for managing breaches in compliance requirements |
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Manage business operational plans |
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Facilitate continuous improvement |
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Review insurance broking service performance |
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Monitor insurance broking client programs |
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Course number |
Course description |
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Manage business risk |
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Interpret and use financial statistics and tools |
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Undertake risk identification |
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Assess risks |
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Course number |
Course description |
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Manage people performance |
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Manage personal and professional development |
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Manage team effectiveness |
Here is a step-by-step guide to show you how to get the Diploma:
Those aspiring to get this qualification must complete secondary school. While a university degree is not mandatory, getting a degree can help familiarise yourself with the many complexities of insurance early.
A university degree in an insurance-related field like law, business, marketing, or accounting can be helpful. At this stage, you may also obtain the Certificate III in Financial Services (FNS30120), which can prepare you for entry-level roles in the insurance industry.
After meeting the prerequisite educational requirements, learners can enrol in a course for the Diploma in Insurance Broking. Accredited course providers include ANZIIF, LMI College, Kaplan Professional, and Financial Educational Professionals.
Take note that each institution can have different entry requirements. For instance, the ANZIIF requires students to have at least four years’ worth of relevant work experience to enrol in their Diploma program.
Regardless of which educational provider you choose, you must complete 11 courses consisting of seven core courses and four elective courses. To complete the course, it’s advisable to take advantage of all the study resources and materials available.
Be sure to participate in assessment tests, which can vary across course providers. You may have to do oral assignments, case study-based interactive simulations and exams, short answer questions or a mixture of these assessment methods. Assessments can help you gauge your progress and hone your communication skills.
You can save on some time and costs if you have already completed equivalent units of competency in Tier 1 Insurance Broking Fundamentals and Tier 1 Insurance Broking Advice. Be sure to apply for a credit transfer if this is the case.
Once you have obtained the Diploma in Insurance Broking, this is sufficient to apply for an entry-level job at an insurance broking business. You can work under the supervision of a licensed broker, or alternatively, work as an intern or trainee at an insurance company. Remember to document your work experience as this will be required when you apply for your Australian Financial Services Licence.
Because of the rapidly changing business and regulatory environment, it is necessary for those with this credential to accumulate Continuing Professional Development (CPD) credits.
This helps maintain their credential and ensures that insurance professionals stay up to date about industry trends, best practices, and regulatory changes.
There are several institutions in Australia that offer the Diploma of Insurance Broking. This is a nationally recognized qualification designed for individuals working as team members or leaders in various insurance broking businesses. These are the most common course providers:
A popular course provider with offices all over the world, Kaplan Professional offers the FNS51220 Diploma of Insurance Broking.
The course is delivered 100% online via Kaplan Professional’s learning management system, KapLearn, and can be initiated anytime. The time it takes to take the courses and obtain the Diploma ranges between 48 and 64 weeks, although this can vary depending on the individual's learning pace and prior experience.
FEP is a registered training organisation that also offers the Diploma in Insurance Broking. FEP's online course meets the ASIC Regulatory Guide 146 (RG146) education requirements for providing general and personal advice with broking clients.
FEP’s course is delivered via online self-paced study, with a duration of 12 months for full-time study or 24 months for part-time study.
The Australian and New Zealand Institute of Insurance and Finance likewise provides courses for obtaining the Diploma in Insurance Broking. Learners can obtain the Diploma from ANZIIF via a self-paced learning program that lasts for about 12 weeks.
This institution is yet another alternative for obtaining the FNS51220 Diploma. LMI College offers this, and many other nationally recognized qualification courses specifically designed for the insurance broking sector.
The cost of getting this credential can vary depending on the course provider you choose. For example, Kaplan Professional prices their course package at $2,235, while FEP lists theirs at $3,380.
The cost for an individual learner can be reduced, depending on their experience and if they apply for RPL and have some of their credits transferred, waiving some courses.
For those who find the cost of getting this credential out of reach, there are funding efforts to encourage more industry professionals to pursue the Diploma.
This title offers several benefits to those who earned it, including:
This qualification is typically for those who want to get ahead as an insurance broker in the general insurance industry. Ideally, the Diploma is most suitable for insurance broking professionals with four or more years of experience in small or large broking businesses, servicing retail or commercial clients.
Those in the financial services sector can also benefit from this credential. Financial services professionals can use this to become insurance brokers in the general insurance sector, including those upskilling or updating current credentials. Industry professionals transitioning into insurance broking can also use the Diploma to kickstart their career shift.
Earning a Diploma of Insurance Broking can lead to career advancement and managerial roles in finance and insurance companies. The insurance industry still offers numerous opportunities for career growth in specialised areas or executive positions. Obtaining a qualification like this can also help address the “knowledge gap” that some insurance stalwarts believe may lead to a dip in service quality.
Getting this credential can help individuals stay updated and well-equipped in an evolving insurance landscape, but whether this is worth obtaining ultimately depends on the individual. Those seeking to advance their skills, knowledge, and career prospects in the Australian insurance industry will surely find this qualification worthwhile.
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