It is not true, as stated in todays Senate debate, that APRA scaled back scrutiny of insurance companies by the Australian Government Actuary after 1998 in order to save money.

The facts are that:

• The Insurance and Superannuation Commission (the insurance regulator up to 1998) ceased the practice of sending insurance company reports routinely to the Australian Government Actuarys Office before APRA was established.
• This was done by the ISC because the value of following the practice for every company, as a matter of course, was questionable it was not to save money.
• APRA can commission an independent actuarial report from the Australian Government Actuary or elsewhere whenever it assesses that as necessary.

APRAs new prudential standards due to be introduced next year will require most companies to have an Appointed Valuation Actuary with statutory reporting obligations to APRA. These new standards are the product of a major APRA project to overhaul thoroughly the supervision arrangements that it inherited for general insurance companies. This had been a long-neglected area, well overdue for reform.

APRA also now conducts on-site reviews of general insurers - this was not done regularly for insurance companies before APRA.

For further information contact:

Gloria Peterson Public Affairs Manager 02 9210 3385 or 0419 250 286