APRA released a final package of measures on actuarial and related matters to clarify and strengthen the role of the Appointed Actuary within general, life, and private health insurance. As part of the package, APRA released Prudential Standard CPS 320 Actuarial and Related Matters (CPS 320), Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340), and Prudential Practice Guide Actuarial and Related Matters (CPG 320). The standards and guidance will be effective from July 01, 2019.
The final standards increase flexibility, streamline requirements, and clarify the seniority of the Appointed Actuary role within insurers. The creation of a new cross-industry prudential standard (CPS 320) harmonizes the requirements and expectations for Appointed Actuaries across the three insurance sectors, while accommodating industry-specific differences. The standards and prudential guidance will come into effect from July 01, 2019, as opposed to the planned January 01, 2019 start date; this longer transition period should provide Appointed Actuaries and insurers with the time to carefully consider how to best implement changes and establish structures to ensure that the objectives of these reforms are realized.
APRA had launched a consultation on CPS 320, GPS 340 and CPG 320 in September 2017. APRA received ten submissions in response to the consultation, nine of which were non-confidential. Respondents were broadly supportive of the proposals but sought some minor amendments. Attachment A to the APRA letter on release on final prudential standards sets out the responses of APRA to the key matters raised during the consultation process. General insurers must provide the Financial Condition Report to APRA within three months of the end of the period to which the report relates. General insurers should note that the first FCR to be submitted will be those with a June 30, 2019 balance-end.
Effective Date: July 01, 2019
Keywords: Asia Pacific, Australia, Insurance, CPS 320, GPS 340, CPG 320, Appointed Actuary, APRA
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