The Australian Prudential Regulation Authority (APRA) has written to insurers to provide a definition of the word “ensure”.

The definition will now be included in a number of standards. Although the regulator has used the word before, boards have argued it is open to misinterpretation and could become an issue in any legal action.

The official definition reads: “When used in relation to a responsibility of the board, ‘ensure’ means to take all reasonable steps and make all appropriate enquiries so that the board can determine, to the best of its knowledge, that the stated matter has been properly addressed.”

As the insurance industry fights to change APRA’s risk management proposals, questions have been raised over a lack of materiality in the prudential standards.

In response, the regulator has added the words “in all material respects” to the risk management declaration submitted by insurers.

The new definition and changed wording join the long list of items on which submissions are sought from the financial services industry. The deadline is May 30.