Document ID: chunk:federal_register_of_legislation:F2023L01607:body:0:p10
Version: federal_register_of_legislation:F2023L01607
Segment Type: other
Provision Reference: 
Character Range: 25099–28024

Matters (LPS 320), Prudential Standard HPS 320 Actuarial and Related Matters (HPS 320), or a previous version of this Prudential Standard) continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard.

Attachment A – General insurance matters

Actuarial advice framework of general insurers
     1. The actuarial advice framework of a general insurer must, for the purposes of paragraph 23 of this Prudential Standard include the following matters:
(a)          the central estimate of insurance liabilities and the value of liabilities that provides a 75 per cent probability of sufficiency, both overall and in respect of each class of business underwritten by the insurer;
(b)          for the purposes of Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge (GPS 115), the most appropriate category or categories in which to assign 'other' insurance business that does not fit within the definition of the classes of business in GPS 001;
(c)          for the purposes of Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge (GPS 116), the portion of the net premiums liability provision which relates to catastrophic losses (PL offset) using the method prescribed in GPS 116 and relevant for the period following the FCR;
(d)          where the insurer is required to determine the other accumulations vertical requirement under GPS 116, the amount of losses within the other accumulations scenario that has already been allowed for in the insurer's net premiums liabilities;
(e)          for a lenders mortgage insurer that is required to determine the Lenders Mortgage Insurance Concentration Risk Charge under GPS 116, the amount of net premiums liabilities that relates to an economic downturn;
(f)           planned capital reductions, in the case of run-off insurers; and
(g)          any other matter required under the prudential standards and the Insurance Act.

Exemptions from appointing an Appointed Actuary
2. An insurer is not required to appoint an Appointed Actuary if:
       (a)          the insurer seeks a determination of exemption from APRA; and[13]
       (b)          the insurer is a small insurer or a general insurer to which exceptional circumstances apply; and
       (c)          APRA determines that the insurer is exempt.
3. An application for an exemption made under paragraph 2 of this Attachment by a small insurer must include documentary evidence that the criteria to be a small insurer under GPS 001 have been met, and an attestation from the chief executive officer[14] (CEO) that it will meet those same criteria for the next 12 months.
4. A small insurer that has been granted an exemption by APRA must annually submit an attestation to APRA in writing from the CEO of the small insurer that the insurer has met the criteria to be a small insurer under GPS