Insurance facts and figures 2007 - PwC

Financial reporting
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Any qualifications must include a description of the cause and circumstances of the
qualification, and the steps taken, or proposed to be taken, to remedy the problem.
Approved auditor’s opinion
The approved auditor must prepare a certificate, addressed to the board of the general
insurer, in respect of the insurer’s yearly statutory accounts.
The certificate must specify whether, in the approved auditor’s opinion, the yearly
statutory accounts of the general insurer present a true and fair view of the results of
the operations for the year and financial position at year-end, in accordance with:
• The provisions of the Insurance Act and prudential standards, the Collection of
Data Act and reporting standards; and
• To the extent that they do not contain any requirements that conflict with the
aforementioned, Australian accounting standards and other mandatory professional
reporting requirements in Australia.
In preparing the certificate, the approved auditor must have regard to relevant
professional standards and guidance notes issued by the Auditing and Assurance
Standards Board (AUASB), to the extent that they are not inconsistent with the
requirements of this prudential standard.
Approved actuary’s insurance liability valuation report
GPS 310 specifies the contents and the requirements of the ILVR. These contents
and requirements are as follows:
• This report must be addressed to the board of the insurer and provide the approved
actuary’s advice in respect of the value of the insurer’s insurance liabilities,
determined in accordance with GPS 310;
• This report must, in respect of each class of business underwritten by the insurer
(or in abbreviated details for classes that are immaterial), provide:
– 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;
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