Following the detection of a number of deficiencies in data from general insurers, the Australian Prudential Regulation Authority (APRA) has asked industry auditors to review the systems and processes used by their clients to complete statistical returns.
All regulated general insurers are required to submit quarterly returns to APRA. Auditors for each insurer must certify that the institution has adequate systems and procedures in place and complies with statutory requirements, including the preparation of financial and statistical information.
APRA views the provision of accurate and timely returns by insurers as crucial to the protection of policyholders, and it has found an unacceptable incidence of errors in some returns. A higher error rate also appears to have followed the introduction of new statistical returns and processes by APRA in September 2002.
A copy of APRAs letter to auditors has been distributed to all regulated general insurers. APRA will be writing to those insurers that have made recurring errors in their returns, requesting them to take appropriate action to rectify their reporting processes and re submit corrected returns.
A copy of the letters and a summary of auditors responsibilities under the Financial Sector (Collection of Data) Act 2001 and the Insurance Act 1973 are available on the APRA website at:
APRAs website also provides relevant information on General Insurance Prudential Standards and Guidance Notes; an overview of the prudential reporting framework including transition and audit requirements; prudential forms including explanatory notes; and responses to frequently asked questions on statistical returns at:
APRA is the prudential regulator of the financial services industry including banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. It currently regulates $1.6 trillion in assets for 20 million Australians.
| For further information: |
Media Enquiries only:
|
| APRA Call Centre |
Susan Morey |
| 1300 131 060 |
APRA - Public Affairs |
|
02 9210 3384 |
|
0438 124 524 |
