The Australian Prudential Regulation Authority (APRA) says it will work with life insurers’ actuaries on group life pricing, to ensure “more effective” delivery of responsibilities.

“A tender for group insurance involves input from a number of professional parties, including

product managers, underwriters and reinsurers, to formulate a competitive tender,” the regulator says in an article on areas of concern in the life industry.

“APRA’s view is that appointed actuaries are central gatekeepers, balancing competing interests while all the time watchful of the ongoing health of the insurers they are advising.”

The regulator warns actuaries should maintain their “professional and statutory responsibilities”.

“APRA continues to hold discussions with appointed actuaries and the profession as to how their responsibilities can be more effectively delivered,” it says in its Insight publication.

The regulator notes a hardening of prices in the group market, but warns concerns remain about the overall level of pricing.

“APRA remains concerned about industry practices and is increasing the intensity of its supervision in this area.”

It says insurers’ strategy of generating growth through changing benefit design and structure “may be nearing exhaustion, because it now seems trustees are redirecting their attention to the impact the cost of insurance premiums is having on members’ retirement benefits, particularly as prices increase”.