Insurance (prudential standard) determination No. 16 of 2008 - Prudential Standard GPS 221 - Risk Management: Level 2 Insurance Groups
AuthorityAuthority
Start here
Get a plain-English read of Authority
Turn the raw legal text into a practical explanation grounded in Insurance (prudential standard) determination No. 16 of 2008 - Prudential Standard GPS 221 - Risk Management: Level 2 Insurance Groups.
Authority
- This Prudential Standard is made under paragraph 32 of the Insurance Act 1973 (the Act).
Application
- This Prudential Standard applies[1] to each:
(a) general insurer (insurer);
(b) authorised NOHC; and
(c) subsidiary of an insurer or authorised NOHC
that is parent entity of a Level 2 insurance group.
-
Insurers and authorised NOHCs must, subject to paragraph 29, comply with this Prudential Standard from 31 March 2009 (effective date).
-
Unless otherwise specified in this Prudential Standard, the following prudential standards apply to a Level 2 insurance group as if references to “insurer” in those prudential standards were references to “Level 2 insurance group”:
(a) Prudential Standard GPS 220 Risk Management (GPS 220);
(b) Prudential Standard GPS 230 Reinsurance Management (GPS 230);
(c) Prudential Standard GPS 231 Outsourcing (GPS 231); and
(d) Prudential Standard GPS 222 Business Continuity Management (GPS 222).
-
In general, Level 2 insurance groups are subject to the same risk management requirements as Level 1 insurers. Where Level 2 insurance groups are subject to additional or alternative prudential requirements, these are specified in this Prudential Standard.
-
Where a requirement is expressed to be imposed on a Level 2 insurance group in this Prudential Standard, the parent entity of the group must ensure that the group meets the requirement.
-
GPS 220 and GPS 230 allow an insurer which is part of an insurance group to meet certain requirements of GPS 220 and GPS 230 on a group basis. Where:
(a) a requirement of GPS 220 or GPS 230 is met on a group basis;
(b) APRA has not required one or more Level 1 insurers within the Level 2 insurance group to comply with the requirement on an individual basis; and
(c) APRA has not required the Level 1 insurer to comply with the requirement in respect of a different insurance group within the wider corporate group
the Level 2 insurance group is not required to comply with the corresponding requirement of this Prudential Standard separately.[2]
-
For the purposes of applying the prudential standards referred to in paragraph 4 to a Level 2 insurance group, references to an Appointed Auditor in those prudential standards shall be taken to be references to a Group Auditor of the group.