Insurance management frameworkInsurance management framework

Insurance management framework

9. An RSE licensee must have in place an insurance management framework to manage making insured benefits available to beneficiaries.

10. An RSE licensee’s insurance management framework is the totality of systems, structures, policies, processes and people to manage making insured benefits available to beneficiaries.

11. An RSE licensee’s insurance management framework must be appropriate to the size, business mix and complexity of the RSE licensee’s business operations and to the types of insured benefits made available.

12. The Board is ultimately responsible for the insurance management framework.

13. An RSE licensee’s insurance management framework must, at a minimum, include:

(a) the insurance strategy required under section 52(7) of the SIS Act (which must also comply with the requirements of this Prudential Standard);

(b) policies and procedures of the RSE licensee relevant to making insured benefits available to beneficiaries, that cover but are not limited to:

(i) the process by which the cost to the RSE licensee of insurance premiums is recovered from the RSE(s);
(ii) the process for monitoring and reviewing the administration of insurance;

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4 For the purposes of this Prudential Standard, a reference to ‘a group’ is a reference to a group comprising the RSE licensee and all connected entities of the RSE licensee and ‘connected entity’ has the meaning given in section 10(1) of the SIS Act.

5 For the purposes of this Prudential Standard, a reference to the ‘Board’ is a reference to the Board of directors or group of individual trustees of an RSE licensee and ‘group of individual trustees’ has the meaning given in section 10(1) of the SIS Act. For the purposes of this Prudential Standard, an ‘RSE licensee’s business operations’ includes all activities as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee.