The Australian Prudential Regulation Authority (APRA) today released a public consultation package seeking comment on its proposal to modernise its data collection for life companies, including friendly societies.

APRA proposes to make its data collection more efficient by updating and streamlining the data specifications and improving the technology used to transfer the data to APRA. The reporting standards, to be made under the Financial Sector (Collection of Data) Act 2001, will also be more consistent with those used for authorised deposit-taking institutions, general insurers and superannuation funds.

APRA uses the data to assist in the prudential supervision of life companies. It also publishes information based on these data to help industry and observers understand life insurance trends and identify emerging issues.

Currently there are 53 data collection forms for life insurers and 31 forms for friendly societies. APRA proposes to replace these with 15 forms for all life companies and friendly societies.

APRA Member Mr John Trowbridge said the new standards are being developed in consultation with the life insurance and friendly society industries, which support improved data collection processes.

“Both the life insurance industry and the friendly society industry have changed substantially over the past ten years, but the structure of data collections has remained static. The proposed new process will be a significant step forward”, Mr Trowbridge said.

The existing processes for data collection from life companies are more than 10 years old and were inherited from APRA’s predecessor organisations, the Australian Financial Institutions Commission and the Insurance and Superannuation Commission.

The consultation package released today comprises a discussion paper, draft reporting standards, forms and instructions for the data collection. These are all available on APRA’s website at: http://www.apra.gov.au/Policy/Draft-life-companies-and-friendly-societies-data-collection-April-2007.cfm.

APRA is seeking comments on its proposal, and written submissions should be emailed to lifedata@apra.gov.au by 12 June 2007. APRA is proposing that the new standards will be available in the third quarter of 2007 and take effect in the first quarter of 2008.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.5 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276

All other inquiries:
APRA Contact Centre 1300 131 060