28 September 2017
The Australian Prudential Regulation Authority (APRA) has released a consultation package on the role of the Appointed Actuary within general, life and private health insurers.
This follows a discussion paper released in June 2016 in which APRA proposed a set of changes to the role of the Appointed Actuary and actuarial advice within insurers.1 The consultation package released today responds to the submissions on the June 2016 discussion paper, which were broadly supportive of APRA’s proposed approach.
Today’s package also proposes replacing three industry-specific actuarial prudential standards with a streamlined, cross-industry standard (CPS 320) and an accompanying prudential practice guide.
APRA Member Geoff Summerhayes said that APRA values the Appointed Actuary role and the important part it plays in protecting policyholder interests, but that the effectiveness of the role had been diminished in parts of the industry.
‘These proposals are a significant step forward in putting the role on a sustainable footing and ensuring that Appointed Actuaries are able to make their important prudential contribution. There is more that can and should be done by insurers and the actuarial profession to fully address the underlying causes of the issues observed by APRA,’ Mr Summerhayes said.
‘The proposals simplify the prudential framework and give insurers more flexibility to determine how and by whom actuarial advice is provided.’
APRA invites written submissions on the proposals in today’s discussion paper by Friday 15 December 2017. The consultation package can be found on APRA’s website here: www.apra.gov.au/CrossIndustry/Pages/Review-of-the-Appointed-Actuary-June-2016.aspx
APRA particularly welcomes feedback on the proposals as they apply to the private health insurance industry.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $5.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.
Media and industry enquiries only:
APRA Media Unit
Telephone: 02 9210 3636
All other inquiries:
APRAinfo: 1300 55 88 49
1 Discussion Paper ‘The role of the Appointed Actuary and actuarial advice within insurers’ (June 2016) http://www.apra.gov.au/CrossIndustry/Pages/Review-of-the-Appointed-Actuary-June-2016.aspx