Document ID: chunk:federal_register_of_legislation:F2023L01607:body:0:p7
Version: federal_register_of_legislation:F2023L01607
Segment Type: other
Provision Reference: 
Character Range: 16946–20086

general insurer, the key results of the Actuarial Valuation Report (AVR) required under paragraph 30 of this Prudential Standard;
           (ii)         for a private health insurer, the insurance liability valuation;
(c)          an assessment of pricing, including the adequacy of premiums;
(d)          an assessment of the suitability and adequacy of the insurer's reinsurance strategy;
(e)          an assessment of the appropriateness of the investment strategy, having regard to the nature of the insurance liabilities;
(f)           an assessment of the actual experience and performance compared to the expected experience and performance of the insurer;
(g)          general observations on the overall risk management framework, with a focus on financial risks, and how these risks are managed by the insurer;
(h)          general observations on the insurer's approach to capital management;
(i)            an assessment of the insurer's current and future profitability and capital adequacy:
(i)            for general insurers, this includes an assessment of the adequacy of the calculation of the insurance concentration risk charge;[10]
(ii)         for life companies, this includes a summary of the Appointed Actuary's advice on the calculation of the value of the capital base and prescribed capital amount for each of the funds of the life company; and
(iii)       for private health insurers, this includes an assessment of the calculation of the Future Exposure Risk Charge (FER)[11].
(j)            the equitable treatment of life insurance participating policyholders;
(k)          for life companies, any material guarantees in investment-linked statutory funds;
(l)            comment on the concerns, if any, that an Appointed Actuary has in relation to the operation and effectiveness of the actuarial advice framework, whether the materiality policy has worked effectively or how the insurer has used actuaries other than the Appointed Actuary; and
(m)        any other matters considered relevant and material to the insurer's current and future financial condition.
26.         The Appointed Actuary must exercise judgement about the matters which are relevant and material to include in the FCR. If, having considered a matter prescribed in paragraph 25 the Appointed Actuary concludes that that matter is not sufficiently relevant and/or material to include in the FCR, the Appointed Actuary must state briefly in the FCR why that matter is not sufficiently relevant and/or material to include in the FCR.
27.         The Appointed Actuary must consider the future outlook and implications for each matter listed in paragraph 25. Where these implications are adverse, the Appointed Actuary must propose recommendations designed to address the issues.
28.         Where relevant, the Appointed Actuary must prepare the FCR in respect of the:
(a)          Australian branch operation for Category C general insurers, but with consideration given to the financial position of the head office; or
(b)          life insurance business carried on inside Australia by an EFLIC, but with consideration given to the