Insurance (prudential standard) determination No. 2 of 2006 - Prudential Standard GPS 230 - Reinsurance Management
Objective and key requirements of this PObjective and key requirements of this Prudential Standard
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Objective and key requirements of this Prudential Standard
This Prudential Standard aims to ensure that a general insurer as part of their overall risk management framework has a specific reinsurance management framework to manage the selection, implementation, monitoring, review, control and documentation of reinsurance arrangements used by a general insurer.
To meet the key requirements of this Prudential Standard a general insurer must:
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have in its reinsurance management framework a documented Reinsurance Management Strategy, sound reinsurance management policies and procedures and clearly defined managerial responsibilities and controls;
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submit its Reinsurance Management Strategy to APRA on an annual basis and re-submit the Reinsurance Management Strategy when any material changes are made;
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submit a Reinsurance Arrangements Statement detailing its reinsurance arrangements to APRA at least annually; and
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make an annual reinsurance declaration based on the ‘two-month rule’ and ‘six-month rule’ specified in this Prudential Standard and submit the declaration to APRA.