The Australian Prudential Regulation Authority (APRA) has released a final package of measures to clarify and strengthen the role of the appointed actuary within general, life, and private health insurers.
Prudential Standard CPS 320 Actuarial and Related Matters (CPS 320) and Prudential Standard GPS 340 Insurance and Liability Valuation (GPS 340), have been released, together with the Prudential Practice Guide CPG 320 Actuarial and Related Matters, “to address concerns about high turnover and declining seniority among appointed actuaries,” said Geoff Summerhayes, executive board member,
The two new prudential standards incorporate stakeholder feedback from the June 2016 and September 2017 consultation papers, with the prudential regulator extending the implementation time for the new standards until July 01, 2019 in response to industry requests.
APRA said the cross-industry prudential standard (CPS 320) was developed to harmonise requirements and expectations for appointed actuaries across all three insurance sectors, while still accommodating industry-specific differences.
Geoff Summerhayes, executive board member, said the new standards “will increase flexibility, streamline requirements, and clarify the seniority of the appointed actuary within insurers.”
“Under these changes, appointed actuaries should be able to maintain greater focus on the most material matters, thereby better protecting the interests of their insurer and its policyholders,” Summerhayes said. “The changes are intended to make it easier for insurers to find and retain appropriately qualified professionals to fill this important role.”
All APRA-regulated insurers are required, under Commonwealth legislation, to designate an appointed actuary, who provides independent advice to boards and senior management on key financial risks.
