Document ID: chunk:federal_register_of_legislation:F2023L01607:body:0:p12
Version: federal_register_of_legislation:F2023L01607
Segment Type: other
Provision Reference: 
Character Range: 30312–33270

to the requirements of this Prudential Standard; and
(b)          contain any other matters that a prudential standard requires to be included in the Level 2 insurance group AVR.
13.         Where this Prudential Standard requires a Level 2 insurance group to ensure that its Group Actuary performs a particular task or service or complies with a requirement, the parent entity of a Level 2 insurance group must ensure the contract engaging the Group Actuary (if external to the Level 2 insurance group) includes a term requiring the Group Actuary to perform the task or service or comply with the requirement.

Run-off insurers
14.         If the insurer is a run-off insurer, the primary role of the Appointed Actuary is to:
(a)          advise on the valuation of the insurer's insurance liabilities;
(b)          demonstrate that the tangible assets of the insurer, after any proposed capital reduction, are sufficient to cover its insurance liabilities to a 99.5 per cent level of sufficiency; and
(c)          review the insurer's run-off plan.
15.         The obligation for the Appointed Actuary to review a run-off insurer's run-off plan replaces the requirement for the Appointed Actuary to prepare a FCR under the Prudential Standards, provided that:
(a)          the run-off insurer prepares a run-off plan; and
(b)          the Appointed Actuary prepares a report of the review of the run-off plan.
16.         If an insurer is a run-off insurer, paragraphs 24 to 29 of this Prudential Standard should be read as if the term 'Review of Run-off plan' replaces 'FCR'. Where APRA is of the view that a run-off plan is not adequate in a particular case, APRA may require that the Appointed Actuary prepare an FCR with respect to the run-off insurer.
17.         A review of a run-off insurer's run-off plan must include the Appointed Actuary's opinion on whether the run-off plan and supporting financial projections are reasonable and adequate, and, if not, recommendations to address the issues.

Attachment B – Life insurance matters

Actuarial advice framework of life companies
1.  The actuarial advice framework of a life company must, for the purposes of paragraph 23 of this Prudential Standard include the following matters:
(a)          the methodology and assumptions for determining the capital base, prescribed capital amount and policy liabilities, including details of the stress margins applied in determining the insurance risk charge;
(b)          changes to the investment strategy, including asset-liability management in respect of participating business and business with discretionary participation features;
(c)          pricing for new products and changes in products, including:
(i)            the proposed terms and conditions on which a policy is to be issued or modified;
(ii)         the proposed basis on which the surrender value is to be determined;
(iii)       if the policy provides for benefits to be calculated