Within the life insurance industry, Employability Assessments (EAs) are among the most recognised forms of Forensic Vocational Assessment (FVA). Developed specifically for the TPD environment in the mid-to-late 2000s, EAs provide a structured framework for assessing vocational capacity in the context of medical evidence.
While all FVAs examine employability in some form, the distinguishing feature of an Employability Assessment is its integration of vocational and medical information.
What is an Employability Assessment?
The Australasian Life Underwriting and Claims Association (ALUCA) defines an Employability Assessment as:
“A life insurance Employability Assessment is an assessment of a person’s vocational capacity based on their education, training and experience and within their medical functional capabilities.”*
At the centre of every EA is a thorough review of an individual’s:
- Education
- Training
- Qualifications
- Employment history
This review extends beyond job titles alone. It involves building a clear picture of their formal education, any additional training or qualifications obtained (and understanding what this involved), and their work history – looking not only at job titles, but at the duties performed and the physical, psychological and cognitive demands of each role.
The importance of functional capacity
An Employability Assessment differs from many other vocational assessments because vocational options are considered within the person’s documented medical and functional capacity.
To support this, clear and contemporary information from treating or independent medical professionals is essential. This allows the assessor to consider whether identified roles are consistent with the individual’s documented functional abilities and limitations. When vocational and medical information are considered together, this typically results in clearer, more robust vocational options and more transparent reasoning.
The role of transferable skills
By analysing education, training and experience (ETE), assessors identify residual transferable skills that may be applied to alternative occupations.
These transferable skills provide the foundation for identifying realistic vocational opportunities that align with both the individual’s background and their medical circumstances.
Labour market considerations
An Employability Assessment also incorporates labour market analysis to evaluate whether identified occupations are available and realistically accessible.
This aspect of the assessment ensures vocational recommendations are not purely theoretical but are considered within the context of the real-world labour market.
Why are Employability Assessments valuable?
An EA is a structured way of bringing together ETE and medical functional capacity, as well as real world labour market analysis, to support decision-making in the TPD context. As one distinct type of FVA developed specifically for life insurance and defined by ALUCA, EAs can provide meaningful vocational insight when applied in appropriate circumstances.
Source: *ALUCA Rehabilitation Subgroup TPD Working Group, Employability Assessment, April 2017 .