Life Insurance (prudential standard) determination No. 9 of 2012 - Prudential Standard LPS 220 - Risk Management
Integration of risk management frameworkIntegration of risk management framework and Internal Capital Adequacy Assessment Process
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Integration of risk management framework and Internal Capital Adequacy Assessment Process
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Under Prudential Standard LPS 110 Capital Adequacy (LPS 110), a life company is required to have an Internal Capital Adequacy Assessment Process (ICAAP). An ICAAP involves an integrated approach to capital and risk management for a life company, aimed at ensuring that the capital held is adequate in the context of the risk profile and risk appetite of that life company. A life company’s ICAAP must be developed having regard to its risk management framework.
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A life company is not required to duplicate content between its ICAAP summary statement or ICAAP report required under LPS 110 and its RMS. Cross-references are appropriate to facilitate integration between the two documents.