Self-insuranceSelf-insurance

Self-insurance

36. An RSE licensee that is permitted to self-insure insured benefits must[17]:

(a) maintain reserves or have other arrangements approved by APRA in place to fund current and future self-insurance liabilities;

(b) attest annually that, in formulating and maintaining its policy in relation to self-insurance, the RSE licensee continues to act in the best interests of beneficiaries[18]; and

(c) develop a contingency plan for an orderly transfer of insurance assets and obligations, for activation in the event that the Board has decided that, by self-insuring benefits, the RSE licensee is no longer acting in the best interest of beneficiaries as a whole.

37. An RSE licensee that self-insures insured benefits must ensure the ongoing actuarial oversight of the reserves and self-insurance arrangement via, at a minimum, the regular investigation required under paragraph 14. The actuarial review must provide sufficient information about the maintenance of adequate insurance reserves or other arrangements for funding of self-insured benefits. The actuarial review must also provide sufficient information on the self-insurance arrangements to demonstrate the extent and adequacy of the actuarial oversight undertaken on these arrangements.

RSE licensee to bear costs for reports

38. An RSE licensee must bear the costs of obtaining an actuarial investigation and preparing and submitting reports, documents and other material required by this Prudential Standard.