Obligations of a Level 2 insurance groupObligations of a Level 2 insurance group

Obligations of a Level 2 insurance group

13. The parent entity of a Level 2 insurance group must make any arrangements necessary to enable its Group Auditor and Group Actuary to undertake their functions as required by this Prudential Standard. These arrangements include ensuring that its Group Auditor and Group Actuary are fully informed of material prudential requirements applicable to the group. These arrangements also include ensuring that its Group Auditor and Group Actuary are provided with any other information that:

(a) APRA has provided to the group and may assist the Group Auditor or Group Actuary, in performing their duties; and

(b) has been requested by the Group Auditor or Group Actuary in performing their duties.

14. The parent entity of a Level 2 insurance group must ensure that its Group Auditor and Group Actuary have access to all relevant data, information, reports and staff of the group (and must take all reasonable steps to ensure access to contractors of the group) that its Group Auditor and Group Actuary reasonably believe are necessary to fulfil their responsibilities. This will include access to:

(a) the board (Board) of the parent entity of the group;

(b) the board audit committee of the parent entity, if any;

(c) the board of any other entity within the group; and

(d) the board audit committee, if any, of any other entity within the group .

15. The parent entity of a Level 2 insurance group must submit to APRA:

(a) reports, other than those relating to a special purpose review, on or before the day that the group’s annual accounts are to be lodged in accordance with reporting standards made under the Financial Sector (Collection of Data) Act 2001 (Collection of Data Act);[7] and

(b) reports relating to a special purpose review in accordance within the time specified.

16. Subject to paragraph 17, APRA does not require the Insurance Liability Valuation Report (ILVR)[8] of a Level 2 insurance group to be subject to external peer review in contrast with the requirement applying to Level 1 insurers under Prudential Standard GPS 310 Audit and Actuarial Reporting and Valuation (GPS 310).