Regulatory AlertsGPS 340 Insurance Liability Valuation
The Australian Prudential Regulation Authority issued Prudential Standard GPS 340 to mandate the valuation of insurance liabilities for general insurers and Level 2 insurance groups. The standard requires regulated entities to calculate outstanding claims and premiums liabilities using prospective methods that include central estimates and risk margins. It establishes specific rules for discount rates, reinsurance recoverables, and the role of the Appointed Actuary in ensuring adequate capitalization and reporting.
Share