Document ID: chunk:federal_register_of_legislation:F2023L01607:body:0:p2
Version: federal_register_of_legislation:F2023L01607
Segment Type: other
Provision Reference: 
Character Range: 2886–5954

assist in the sound and prudent operation of its business. It sets out the requirements for insurers to appoint an Appointed Actuary and to establish a framework for the provision of actuarial advice. It also sets out the functions of the Appointed Actuary role.
The purpose of the Appointed Actuary role is to ensure that the board and senior management have unfettered access to expert and impartial actuarial advice and review. The role is intended to assist with the sound and prudent management of an insurer and ensure that the insurer gives appropriate consideration to the protection of policyholder interests.
The Appointed Actuary must have the necessary authority, seniority and support to contribute to the debate of strategic issues at a senior management level and provide advice that is considered by the board. The Appointed Actuary plays a key role in, and provides effective challenge to, the activities and decisions that may materially affect the insurer's financial condition, as well as policyholder interests.
Some of the key requirements of this Prudential Standard are:
     * an insurer must establish an actuarial advice framework;
     * an insurer must provide the Appointed Actuary with sufficient information, and access to the board and senior management, to allow the Appointed Actuary to fulfil specified roles and functions;
     * an Appointed Actuary must provide advice to the insurer on the valuation of the insurance liabilities, the insurer's financial condition, and matters specified under the insurer's actuarial advice framework, consistent with the insurer's materiality policy;
     * the Appointed Actuary must assess the insurer's financial condition and annually prepare a Financial Condition Report;
     * an insurer must submit a copy of the Financial Condition Report to APRA;
     * the Appointed Actuary must provide advice on the valuation of insurance liabilities, and Appointed Actuaries of general insurers and life companies must annually prepare an Actuarial Valuation Report; and
     * a general insurer or life company must submit a copy of the Actuarial Valuation Report to APRA.

Table of Contents
Authority
Application
Interpretation
Appointment
Group Actuaries
Obligations of the Appointed Actuary and other actuaries subject to prudential requirements
Insurers' obligations with respect to actuaries
Actuarial advice framework
Financial Condition Report
Actuarial Valuation Report
Departures from actuarial advice
Actuarial reviews required by APRA
Adjustments and exclusions
Determinations made under previous prudential standards
Attachment A – General insurance matters
Attachment B – Life insurance matters
Attachment C – Private health insurance matters

Authority
     1. This Prudential Standard is made under:
(a)          section 32 of the Insurance Act 1973 (Insurance Act) in relation to general insurers and parent entities of Level 2 insurance groups;[1]
(b)          section 230A of the Life Insurance Act 1995 (Life Insurance Act) in relation to life companies, including friendly