Insurance Act 1973 - Determination of Prudential Standards - GPS 110 - Capital Adequacy for General Insurers; GPS 120 - Assets in Australia for General Insurers; GPS 210 - Liability Valuation for General Insurers; GPS 220 - Risk Management for General Insurers; GSP 230 - Reinsurance Arrangements for General Insurers; GPS 410 - Transfer and Amalgamation of Insurance Business for General Insurers and Transitional Prudential Standard GPS 900- Early Approvals of Auditors and Actuaries (07/02/2002)
Routine ReportingRoutine Reporting
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Turn the raw legal text into a practical explanation grounded in Insurance Act 1973 - Determination of Prudential Standards - GPS 110 - Capital Adequacy for General Insurers; GPS 120 - Assets in Australia for General Insurers; GPS 210 - Liability Valuation for General Insurers; GPS 220 - Risk Management for General Insurers; GSP 230 - Reinsurance Arrangements for General Insurers; GPS 410 - Transfer and Amalgamation of Insurance Business for General Insurers and Transitional Prudential Standard GPS 900- Early Approvals of Auditors and Actuaries (07/02/2002).
Routine Reporting
(i) Approved Auditor
- The Approved Auditor must audit the yearly statutory accounts of an insurer as required by the Act.[59] The Approved Auditor must provide a certificate to the insurer specifying whether, in the Approved Auditor’s opinion:
(a) the insurer has adequate systems and procedures in place to ensure it observes all the prudential standard requirements APRA has set for the insurer;
(b) the statistical and financial data provided by the insurer to APRA in its yearly statutory accounts are reliable;
(c) the insurer has adequate systems and procedures in place to ensure it complies with statutory general insurance requirements, any conditions on the authority to carry on insurance business, and any other conditions imposed by APRA in relation to an insurer’s operations; and
(d) there are any matters which will, or are likely to, adversely affect the interests of insurer’s policyholders.
Where the Approved Auditor is unable to satisfy these requirements (for example, if there are accounting records that have not been appropriately kept, transactions that appear irregular or that have not been accurately or properly recorded, requests for information and explanation that have not been met, or aspects to the accounts that do not truly represent the transactions and financial position), the certificate should contain details of these matters.
(ii) Approved Actuary
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The Approved Actuary must prepare a report in accordance with this Guidance Note, GPS 210 Liability Valuation and any other guidance or any relevant professional standards at the end of each financial year of the insurer.
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The report must provide:
(a) written advice in respect of the value of the insurer’s liabilities in accordance with GPS 210; and
(b) whether there are any matters arising out of the preparation of this advice which will, or are likely to, adversely affect the interests of the insurer’s policyholders.
- In particular, the report must provide details of, in respect of each class of business:
(a) an estimate of the value of insurance liabilities determined in accordance with GPS 210 (where necessary, this might also include an indication of the conceivable range of values, between which the true value of the insurance liabilities might lie);
(b) assumptions used in the valuation process;
(c) availability and appropriateness of the data;
(d) significant aspects of the recent experience;
(e) the model(s) used;