Regulatory AlertsGPG 245 Reinsurance Management Strategy
The Australian Prudential Regulation Authority issued GPG 245 to provide guidance for general insurers on complying with Prudential Standard GPS 230 regarding reinsurance management. The document outlines prudent practices for establishing sound policies and procedures to select, monitor, and review reinsurance arrangements, including specific targets for cession ratios based on insurer category. It further details requirements for documentation with non-authorised reinsurers and criteria for using trust funds as collateral against reinsurance recoverables.
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