The Australian Prudential Regulation Authority (APRA) today released for comment a draft Prudential Standard on risk management for general insurers, as part of the current review of prudential supervisory arrangements for the general insurance industry.

The Risk Management Standard is the fifth and last in the current series of draft Standards and Guidance Notes issued by APRA under its proposed reforms to the general insurance regime. A further round of consultation will be undertaken early next year.

The draft Standard aims to ensure an insurer is well managed by requiring its Board and senior management to institute effective internal governance as well as appropriate systems and controls to identify, manage and monitor risks that may threaten the ability of the insurer to meet its policyholder obligations.

The draft Standard also requires that an insurer has access to appropriate independent expertise and clearly states that ultimate responsibility for the sound and prudent management of an insurer rests with the Board of Directors and senior management.

Comments on the draft Standard are invited by 20 October 2000. A copy of the draft Standard and a Discussion Paper concerning this and other proposed reforms to the prudential supervision of general insurance companies in Australia, can be found on the APRA web site.

Enquiries: giregime@apra.gov.au

Comments in writing can be made to:

Mr Brian Gray
Executive General Manager
Policy, Research and Consulting
Australian Prudential Regulation Authority
GPO Box 9836
Sydney NSW 2001

For further information:

Gloria Peterson
Public Affairs Manager
02 9210