The Australian Prudential Regulation Authority’s proposed guide on risk management puts impossible obligations on insurer board members, according to the Insurance Council of Australia (ICA).

Standard CPG220 should be consistent with the normally accepted duties of directors, the council says in its submission to the regulator’s consultation.

Board members should have to “take reasonable steps” rather than being required to “ensure” an action is taken, as proposed in the draft.

ICA says directors, particularly non-executive directors, should not have a requirement imposed without “careful consideration as to board members’ practical ability to comply”.

Directors should have transparency on the standards they are expected to meet and non-executive directors should not be expected to take management roles, it argues.

The submission says boards and their committees have the role of oversight, and are not part of management.