The Australian Prudential Regulation Authority (APRA) has released a consultation paper in response to last year’s submissions regarding proposals to improve the functions of insurers’ appointed actuaries.

APRA is considering a single cross-industry prudential standard (CPS 320) to replace three industry-specific actuarial prudential standards and a prudential practice guide on actuarial and related matters, according to the consultation paper.

It is also proposing a new prudential standard (GPS 340) on liability valuation for general insurers.

APRA says the new standard will “better align general insurers with requirements in the life insurance industry.”

“An insurer must value its insurance liabilities in accordance with this prudential standard, whether or not the insurer is required to have an appointed actuary,” the draft guideline for GPS 340 says.

“The valuation of insurance liabilities reflects the individual circumstances of the insurer. The principles of this prudential standard must be applied to the calculation of both gross and net insurance liabilities.”

Submissions for the consultation package close on December 15.

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