Professional Standards and Submissions Update

Professional Standard 30 Update and RBNZ Submission Update

Professional Standard No 30 (Valuation of General Insurance Claims) has been updated with several minor amendments.

 The changes were made by the drafting group appointed by the General Insurance Committee led by Heathcliff Neels. The changes have been reviewed by the Professional Standards Committee and approved by Council.

 The new standard must be used for all valuations at effective dates on or after 28 February 2023. Members have the option to use either the old or new standard for earlier valuation dates on or after 31 December 2022.

 If you have any queries please get in touch with the Convenor of the Professional Standards Committee, John Smith at john.smith@fidelitylife.co.nz or 021 440 422.

 A copy of PS 30 with the tracked changes can be found here

New Submission to the RBNZ

The Reserve Bank has continued its Review of the Insurance (Prudential Supervision) Act 2010 with its fourth Options Paper on Governance, Supervisory Processes and Disclosure. Among the options were some particularly pertinent issues for the actuarial profession.  Thanks to some helpful input from members, including at a sessional meeting, the working group put together the NZSA submission which was approved by Council.  It can be read here. The NZSA is generally supportive of a revised IPSA empowering the Reserve Bank to introduce new standards, but is strongly opposed to the introduction of a statutory duty of due diligence with civil pecuniary penalties on appointed actuaries. Representatives from NZSA were able to meet with the Reserve Bank to expand on the main themes of our submission at a useful meeting.  As the Reserve Bank continues its review, it is clear there will be more consultation which will need further detailed input from NZSA.

Author

society@actuaries.org.nz