Actuaries are taking centre stage in the new Australian Prudential Regulation Authority (APRA) reporting arrangements, and the Institute of Actuaries of Australia (IAA) has welcomed the increased role they will play under the proposed system.

Approved actuaries were introduced by APRA in mid-2002 to provide liability valuations to general insurance companies. Now APRA has extended the approved actuary role to financial condition reporting, including reporting on companies’ liability valuations.

IAA President Andrew Gale says he supports APRA’s recommendation to extend the role of the approved actuary. “Actuaries can provide an objective company assessment through a financial condition report supported by the profession’s obligation to provide unbiased and transparent advice.”

To support actuaries in their extended role, the IAA has established a taskforce to develop professional standards and guidance notes.

“Actuaries will need to be across the whole business and have access to information not previously available to them,” Mr Gale said. “Peer review of an actuary’s work and reports will be a valuable tool.”