Proposals for an actuarial advice framework are aimed at strengthening the industry, according to the Australian Prudential Regulation Authority (APRA).

The changes will ensure appointed actuaries continue to play a vital role safeguarding insurers’ financial stability and the interests of policyholders.

“Change is inevitable, and seems to happen faster than ever before,” Senior Manager Policy Development Peter Kohlhagen said.

“In that environment, the role of the appointed actuary in supporting the resilience of insurers is critical.

“Overall, our aspiration for the role is that the appointed actuary is able to effectively influence, and challenge where necessary, the major decisions impacting the insurer.

“The intention behind the framework is to provide significantly more flexibility for insurers and actuaries to work together to agree an approach.”

The actuarial advice framework, a key component of reforms proposed by APRA, received broad support in submissions to last year’s discussion paper.

APRA does not intend the framework to be prescriptive and expects regular reviews.

Other proposed measures include a new purpose statement for the role of appointed actuary, new emphasis on managing conflicts of interest or duty, improving actuaries’ reporting requirements, and simplification and harmonisation of prudential standards.

The regulator launched a follow-up consultation package last month in response to the discussion paper.

“In a broader sense, the next steps involve all of us… there is a need for everyone involved to think deeply and challenge the status quo,” Mr Kohlhagen said.

Submissions close on December 15.