Insurance - PricewaterhouseCoopers

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the general insurer has complied, in all significant respects, with its RMS and
REMS obligations.
The report must include details of any qualification against the above, as well as
reporting by exception any identified non-compliance with prudential requirements or
any matters that will, or are likely to, adversely affect the interests of policyholders of
the general insurer.
The report must be provided to the general insurer in sufficient time for it to be
submitted to APRA on the day that their yearly statutory accounts are due.
Appointed actuary’s insurance liability valuation report
GPS 310 Audit and Actuarial Reporting and Valuation specifies the contents and the
requirements of the ILVR. These are summarised as follows:
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The report must be addressed to the board of the insurer and provide the
appointed actuary’s advice in respect of the value of the insurer’s insurance
liabilities, determined in accordance with GPS 310;
The report must, in respect of each class of business underwritten by the insurer
(or in abbreviated details for classes that are immaterial), provide:
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The value of the insurance liabilities;
The assumptions used in the valuation process and the justifications of
these assumptions;
The availability and appropriateness of the data;
Significant aspects of recent experience;
The methodologies used to model the central estimates of outstanding claims
liabilities and premium liabilities;
An indication of the uncertainty in the central estimate, including statistics
such as the standard deviation;
The results of the sensitivity analyses undertaken;
A description of the probability distributions and parameters, or approaches
adopted to estimate uncertainty; and
Risk margins that relate to the inherent uncertainty in the central estimate
values for outstanding claims liabilities and premium liabilities; and
The report must provide sufficient information in relation to the assumptions and
methods used for the valuation liabilities so that another actuary reading the
report can obtain a sound understanding of the valuation process and results,
limitations and key risks in the insurance portfolio; and
The report must be prepared by the appointed actuary and be subject to an
independent peer review.
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