Obligations of an insurer

7. Under the Act, an insurer must appoint an auditor (Approved Auditor), being an auditor whose appointment is approved by APRA.[4]

8. Under the Act, subject to certain exceptions, an insurer must appoint an actuary (Approved Actuary), being an actuary whose appointment is approved by APRA.[5]

9. Under the Act, an insurer must make arrangements that are necessary to enable its Approved Auditor and Approved Actuary to undertake their functions as required by the Act and prudential standards made under the Act.[6] These arrangements include ensuring that an insurer’s Approved Auditor and Approved Actuary are fully informed of all prudential requirements applicable to the insurer. Prudential requirements include requirements imposed by the Act, prudential standards, the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act), reporting standards, conditions on the insurer’s authorisation and any other requirements imposed by APRA in writing. These arrangements also include ensuring that an insurer’s Approved Auditor and Approved Actuary are provided with any other information that APRA has provided to the insurer that may assist, or is requested by, the Approved Auditor or Approved Actuary, in performing their duties.

10. An insurer must ensure that its Approved Auditor and Approved Actuary have access to all relevant data, information, reports and staff of the insurer (and must take all reasonable steps to ensure access to contractors of the insurer) that its Approved Auditor and Approved Actuary reasonably believe are necessary to fulfil their responsibilities. This will include access to the insurer’s Board[7] and Board Audit Committee.

11. Under the Act, an insurer must submit to APRA all certificates and reports required to be prepared by its Approved Auditor and Approved Actuary.[8] Reports other than those relating to a special purpose review must be submitted on or before the day that the insurer’s yearly statutory accounts are required to be given to APRA in accordance with reporting standards made under the Collection of Data Act. Further details of those certificates and reports are set out in paragraphs 38 to 42. Reports relating to a special purpose review must be submitted to APRA in accordance with the time specified in paragraph 24.

12. Prior to submitting to APRA an Insurance Liability Valuation Report (ILVR) prepared by its Approved Actuary, an insurer must arrange for it to be peer reviewed by another actuary (the Reviewing Actuary). Further details of the requirements for peer review are set out in paragraphs 64 to 72.