Prudential Standard GOI 1 (Framework for Governance and Operational Standards for Insurers)

Question 1

The Standards focus on 6 main areas for insurers

Answer 1

• governance
• risk management and internal controls
• fitness and propriety key persons
• oversight of outsourcing arrangements
• controls around transfers of business between insurers
• miscellaneous regulatory requirements

Question 2

6 Strong governance arrangements

Answer 2

• Clear assignment of roles, responsibilities, including documentation, monitoring and accountability for delegations.
• Clarity around decision making, including ensuring that decision makers have necessary powers and information to support their responsibilities and appropriate accountability.
• Incentive arrangements that support sound and prudent decision making.
• Well-documented policies and procedures that establish how the business should operate.
• Clear and reliable mechanisms for escalating breaches to the Prudential Authority.
• Clear protocols to ensure all regulatory matters are prioritised and communicated to the Prudential Authority.