Industry comments for this initial consultation round are invited by 17 December 1999.

APRA has decided that a study into the prudential supervision requirements for general insurers should be undertaken with a view to bringing the current regime (dating back to 1973) more into line with latest developments in supervisory techniques and risk management practice.

The three discussion papers are intended to stimulate dialogue and debate on reform with the industry and other interested parties. The papers are:

• Study of the Prudential Supervisory Requirements for General Insurers
• A New Statutory Solvency Standard for General Insurers
• A Statutory Liability Valuation Standard for General Insurers

Their basic theme is that the prudential supervisory regime for general insurers should be more responsive to the underlying level of risk of individual institutions.  Further, the regime should promote greater transparency and comparability between general insurance companies through more consistent reporting and disclosure requirements.

APRA will take into account all submissions on the discussion papers and conduct further consultation in early 2000 before making recommendations to the Government.

A copy of the discussion papers is on APRAs web site at www.apra.gov.au

Enquiries: giregime@apra.gov.au

Comments can be made in writing to:

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

Further information:

Amanda Goodban
02 9210 3380 or Fax 02 9210 3190