Document ID: chunk:federal_register_of_legislation:F2023L01607:body:0:p6
Version: federal_register_of_legislation:F2023L01607
Segment Type: other
Provision Reference: 
Character Range: 14149–17243

working papers and other documentation of:
(a)          an Appointed Actuary in relation to the prudential requirements; or
       (b)          an actuary appointed under paragraph 36 in relation to an actuarial review conducted under paragraph 35,

    are retained for a period of seven years. An insurer must also ensure that the person or entity who holds such working papers and documentation provides those papers and documents to APRA when requested to do so in writing.

Actuarial advice framework
22.         An insurer must have a board-approved framework for the provision of actuarial advice (actuarial advice framework) that enables the Appointed Actuary to perform the functions of the role and that complies with the applicable prudential requirements. Before approving the actuarial advice framework, the board must consider advice provided by the Appointed Actuary in relation to the actuarial advice framework.
23.         The actuarial advice framework must be appropriately documented and:
(a)          include a materiality policy;
(b)          identify areas where the advice of an actuary is required, having regard to the materiality policy and the minimum matters to be included in the actuarial advice framework for each type of insurer as set out in the Attachments, as applicable;
(c)          specify when advice must specifically be given by the Appointed Actuary rather than another actuary, having regard to the materiality of the matter;
(d)          specify by whom actuarial advice must be considered (in particular, the circumstances in which it must be considered by the board), having regard to the materiality policy;
(e)          set out the insurer's approach to managing potential conflicts of interest or duty in the Appointed Actuary role and in the operation of the actuarial advice framework; and
(f)           set out the insurer's approach to seeking actuarial advice on reviews of the:
(i)            risk management framework[7]; and
(ii)         Internal Capital Adequacy Assessment Process (ICAAP) of a general insurer, life company or private health insurer.

Financial Condition Report
24.         An insurer[8] must arrange for its Appointed Actuary to:
(a)          assess the financial condition of the insurer including the financial condition of each of the funds of a life company and each of the health benefits funds of a private health insurer; and
(b)          report on that assessment in a written Financial Condition Report (FCR). [9]
25.         Subject to paragraph 26, an Appointed Actuary must include the following information in the FCR:
(a)          a business overview including the background, structure, strategy and operations of the insurer;
(b)          a summary of:
           (i)            for a life company or 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)