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APRA Insight - Issue 1 2019

A message from APRA Chair Wayne Byres 

Welcome to the first edition of the new-look APRA Insight. 

Over the past 18 months, the financial services industry has been subject to unprecedented scrutiny over its performance, conduct and treatment of customers. Read more
 

Features

Beyond data collection: APRA's data modernisation agenda

To keep up with advances in data, analytics and technology APRA has embarked a program to improve how it stores, analyses and delivers its data.

The BEAR gets bigger

On 1 July, the Banking Executive Accountability Regime (BEAR) commenced for all medium and small authorised deposit-taking institutions, including banks, credit unions and building societies. 

On the horizon

In the coming months, APRA will respond to April’s consultation on an updated prudential standard requiring superannuation licensees to assess the outcomes they are delivering for members. We needed to revise SPS 515 Strategic Planning and Member Outcomes (SPS 515), which was released in December 2018, after the passage of the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No.1) Act 2019, to ensure alignment between the legislation and our prudential requirements. We plan to release the final SPS 515 and supporting prudential guidance in the third quarter of 2019. Given the key elements of SPS 515 are likely to remain largely unchanged, the standard's effective date will be 1 January 2020. 

APRA will also be releasing an initial discussion paper outlining the principles of the proposed new capital framework for private health insurance. We first outlined our planned approach to reviewing the capital framework in November last year. Since that time, we have been engaging with industry as we consider how to tailor the capital framework to recognise the operating environment for private health insurance business and reflect the risk profiles in the industry.
 

APRA explains

Clarification on APRA's data on average housing loan figures

Some in the financial industry and media have misinterpreted the data from APRA's Quarterly Authorised Deposit-taking Institution Property Exposures statistical publication. 

Data find: Number of APRA-regulated superannuation funds, 2008-18

View an animated graph to see how Australia's superannuation industry has changed in 10 years.

APRA's supervision in action

Read a recent case study of APRA's supervision on intra-group funding arrangements in the banking sector.

This edition included links to the latest APRA media releases, speeches and events. You can subscribe to receive APRA Insight straight into your inbox. 

Past issues

2018

Insight Issue 1 2018

  • Combating cyber risk
  • Poor operational due diligence not worth the risk
  • Promoting greater resilience in private health insurance
Insight Issue 2 2018
  • Thematic reviews point to better super practice
  • Restricted area: APRA's new ADI licencing route
  • Seeking sustainability: challenges facing individual disability income insurance
Insight issue 3 2018
  • Testing resilience: The 2017 Banking Industry Stress Test
  • Cloud control: APRA evolves its stance on shared computing services
  • The Private Health Insurance Policy Roadmap: Where are we now?
Insight Issue 4 2018
  • Strictly business: an update on commercial real estate lending
  • Class actions and the importance of Directors and Officers Insurance
  • APRA's international agenda

2017

Insight Issue 1 2017
  • APRA's policy outlook for 2017
  • Sound planning essential to member outcomes in superannuation
  • Climate change and prudential risks
Insight Issue 2 2017
  • From fund performance to member outcomes: Assessing the superannuation industry
  • Resolution planning
  • APRA and ASIC life insurance claims data collection project
Insight Issue 3 2017
  • 2016 general insurance stress test
  • Refreshing APRA’s approach to licensing
  • Strengthening actuarial advice within insurers
Insight Issue 4 2017
  • Residential mortgages: Update on interest-only lending
  • Insights from APRA's 2017 Cyber Security Survey
  • Industry engagement on replacing D2A

2016

Insight Issue 1 2016
  • Residential mortgage underwriting standards
  • Private health insurance industry overview
  • The prudential policy outlook
  • Assessing MySuper products
Insight Issue 2 2016
  • International capital comparison update
  • The Financial Claims Scheme for ADIs
  • APRA's technical assistance activities in the Asia-Pacific region
  • Renovating the regulatory framework for life and general insurers in Australia
Insight Issue 3 2016
  • Insights from APRA's 2016 Cyber Security Survey
  • New financial sector statistics
  • Pricing of commercial property insurance
  • APRA's Corporate Plan 2016-20
Insight Issue 4 2016
  • Liquidity stress testing in superannuation - key observations
  • Life insurance industry stress test results
  • Private health insurance prudential policy roadmap