The Australian Prudential Regulation Authority (APRA) today released for comment a draft Guidance Note containing guidance for actuaries applying the proposed Prudential Standard on Liability Valuation for general insurers. The proposed Liability Valuation Standard was released for industry comment by APRA on 8 May 2000 and is designed to improve the consistency of the valuation of insurance liabilities across insurers.
Consulting firm KPMG Actuaries was engaged by APRA to draft the guidance for actuaries. APRA acknowledges that the Institute of Actuaries of Australia will subsequently need to develop its own professional guidance note under its internal processes.
Neither the Standard nor the Guidance Note can take effect in advance of legislative reform of the Insurance Act 1973.
APRA will shortly be asking selected general insurers to road-test its recently released draft Prudential Standard on Capital Adequacy against their most recent three years financial data. The Liability Valuation Standard and guidance for actuaries are necessary inputs to this process.
Comments on the draft Guidelines are invited by 29 September 2000. A copy of the draft Guidance Note is available on the APRA website. Enquiries: giregime@apra.gov.au
Comments in writing can be made to:
Mr Brian Gray
Executive General Manager
Policy, Research and Consulting
Australian Prudential Regulation Authority
GPO Box 9836
Sydney NSW 2001
For further information:
Gloria Peterson
Public Affairs Manager
02 9210 3385
