APRA publishes discussion paper ‘The role of the Appointed Actuary and actuarial advice within insurers’

Chief Editor Trang Duncanson shares her thoughts to generate discussion, and strongly encourages us to contribute.

How wonderful to see APRA publish their discussion paper ‘The role of the Appointed Actuary and actuarial advice within insurers’. I think APRA does a great job with their consultation processes, and this is another excellent opportunity for us actuaries to get involved – it is all about us too!

Already some great discussion has been generated. Refer to my latest reads:

When I read the APRA discussion paper, three key things jumped out at me as items for further thought:

  • Conflict of interest – being able to manage this well should not be assumed. Assumption setting can be rife with politics and conflict. What if our rewards are linked to profit or embedded value growth, which we are asked to advise on?
  • Organisational structure and authority – they are linked! Not being well positioned in an organisation means you have limited access to information to allow the catalyst and strategic input;
  • Conversations with your Board and senior management – we need to take this beyond a discussion with APRA and ourselves. Are we doing this? As the discussion paper says, “The proposals in this paper require changed behaviour from insurers, actuaries and APRA if the full benefits are to be realised.”

There will be an Insights lunchtime session at the Institute on Monday 18 July 2016 on this topic. Come along to listen, and be heard.

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