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Daily news update: RBNZ recommendations for Appointed Actuaries, and more stories

The Reserve Bank have released their thematic review of an Appointed Actuary role. The review was commissioned to better understand how the role works in practice. The review is presented in the form of a 55-page report that covers the role and scope of responsibility of Appointed Actuaries, regulatory requirements, insurer models, independence, conflicts of interest, expectations in a crisis, actuarial recommendations and advice, and engagement with the board, management, auditors and RBNZ. 

“The review, conducted by the Reserve Bank’s Industry Insights and Thematics team, was launched to better understand how the Appointed Actuary role works in practice for insurers, actuaries and the Reserve Bank, and to identify potential areas for improvement to make the role and regime more effective.

“The review concludes the regime and appointed actuary role are largely effective, but improvements can be made across the board – with the actuaries themselves, insurers and at the Reserve Bank. These improvements are important, and we will be working closely with the industry to support necessary changes,” Deputy Governor and General Manager for Financial Stability Geoff Bascand says.”

RBNZ outlined their expectations as well as identifying several areas that could be improved upon.

Key areas for improvement identified include:

  • Processes for appointments, absences, and reviews to continue with or replace the Appointed Actuary
  • Preparedness for the Appointed Actuary’s involvement in a crisis
  • Identifying and managing conflicts of interest
  • Clarity of delegations
  • Processes for following up recommendations in the Financial Condition Reports
  • Engagement between insurers’ boards and Appointed Actuaries
  • Engagement between the Reserve Bank and Appointed Actuaries
  • Guidance around the Reserve Bank’s expectations of the Appointed Actuary role, including explicit expectations regarding their independence and impartiality

Click here to read full report

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