Document ID: chunk:federal_register_of_legislation:F2023L00678:body:0:p3
Version: federal_register_of_legislation:F2023L00678
Segment Type: other
Provision Reference: 
Character Range: 5779–9131

An insurer may only meet the requirement referred to in paragraph 8(b) 7on an insurance group basis where the ReMS covers the insurance group as a whole, in accordance with paragraph 8(a).
10.         Where APRA is of the view that the fulfilment of a requirement referred to in paragraph 8 by an insurance group does not adequately address the requirement for an insurer within that insurance group, APRA may require that insurer to meet the requirement on a separate basis within a reasonable time specified by APRA.

Reinsurance management
11.         Regulated institutions must at all times have a reinsurance management framework to manage the risks arising from its reinsurance arrangements.
12.         A regulated institution's reinsurance management framework must provide a reasonable assurance that the regulated institution's reinsurance arrangements are being prudently and soundly managed, having regard to such factors as the size, business classes, complexity of the regulated institution's operations and its risk appetite.
13.         For the purposes of this Prudential Standard, the reinsurance management framework must deal with both the reinsurance and, where relevant to the regulated institution, the retrocession arrangements[1] of the regulated institution.
    14.         A regulated institution's reinsurance management framework must, at a minimum, include:

(a)          a written ReMS that complies with this Prudential Standard, is approved by the Board and in regard to which the Board is satisfied that:
           (i)            it describes the key elements of the reinsurance management framework, including all policies, procedures, management responsibilities and controls of the kind referred to in paragraphs 14(b) and (c), and any other matters that this Prudential Standard requires to be included in a ReMS;
           (ii)         the reinsurance management framework described in the ReMS is appropriate and provides reasonable assurance that the regulated institution's reinsurance arrangements are being prudently and soundly managed having regard to such factors as the size, business classes, complexity of the regulated institution's operations and the risk appetite of the regulated institution; and
           (iii)       it describes the review referred to in paragraph 17;
(b)          reinsurance management policies and procedures to manage the selection, implementation, monitoring, review, amendment (where appropriate) and documentation of reinsurance arrangements of the regulated institution and mechanisms to ensure that the reinsurance management framework remains effective; and
(c)          clearly defined managerial responsibilities and controls.
    15.         A regulated institution's reinsurance management framework must be consistent with the regulated institution's Business Plan and Internal Capital Adequacy Assessment Process.

    16.         There must be a clear link between the regulated institution's reinsurance management framework (including the regulated institution's ReMS) and the regulated institution's risk management framework.

    17.         A regulated institution must ensure that its reinsurance management framework is subject to effective and comprehensive review, as part of the risk management framework review, by operationally independent,