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Prudential and Reporting Standards for General insurance

Capital

110

Internal Capital Adequacy Assessment Process and Supervisory Review

CPG
110
Guidance (1)
In Force
March 2013
This guide assists regulated institutions to develop their Internal Capital Adequacy Assessment Process, including required documents, and to understand APRA’s approach to the supervisory review process for setting supervisory adjustments to required capital. This information supports compliance with Prudential Standard APS 110 Capital Adequacy (APS 110), Prudential Standard GPS 110 Capital Adequacy (GPS 110) and Prudential Standard LPS 110 Capital Adequacy (LPS 110). These prudential standards set out requirements in relation to the capital adequacy of a regulated institution, including the need for a regulated institution to have an ICAAP, and establish a framework for supervisory review and adjustment of a regulated institution’s capital requirements.   |  File type: PDF  |  File size: 308.59 KB
110

Capital Adequacy

GPS
110
GRS
110.1
GRS
110.1_G
Prudential Standards (1)
In Force
In effect from 1 July 2019
The ultimate responsibility for the prudent management of capital of a general insurer or Level 2 insurance group rests with its Board of directors. The Board must ensure that the general insurer or Level 2 insurance group maintains an adequate level and quality of capital commensurate with the scale, nature and complexity of its business and risk profile, such that it is able to meet its obligations under a wide range of circumstances.
Reporting Standards (2)
In Force
1 January 2013
Level 1: This Reporting Standard sets out the requirements to provide information to APRA about a general insurer’s prescribed capital amount. It includes Form GRF 110.1 Prescribed Capital Amount and associated specific instructions and must be read together with the general instruction guide and Prudential Standard GPS 110 Capital Adequacy.
In Force
In effect from 30 June 2016
This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s prescribed capital amount. It includes Form GRF 110.1_G Prescribed Capital Amount (G) and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 110 Capital Adequacy.
112

Capital Adequacy: Measurement of Capital

GPS
112
GRS
112.0
GRS
112.3
GRS
112.0G
GRS
112.3_G
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard sets out the characteristics that an instrument must have to qualify for inclusion in the capital base of a general insurer or Level 2 insurance group and the various regulatory adjustments to be made to determine the capital base. The ultimate responsibility for ensuring that the capital base of a general insurer or a Level 2 insurance group meets the requirements of this Prudential Standard rests with its Board of directors.
Guidance (0)
Reporting Standards (4)
In Force
In effect from 18 December 2014
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the determination of a general insurer’s capital base. It includes Form GRF 112.0 Determination of Capital Base and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 112 Capital Adequacy: Measurement of Capital.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s related party exposures. It includes Form GRF 112.3 Related Party Exposures and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s capital base. It includes Form GRF 112.0_G Determination of Capital Base (G) and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 112 Capital Adequacy: Measurement of Capital.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s related party exposures. It includes Form GRF 112.3_G Related Party Exposures (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
113

Capital Adequacy: Internal Model-based Method

GPS
113
GPG
113
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard sets out the requirements that a general insurer or Level 2 insurance group must meet to use an Internal Model-based Method for calculating the prescribed capital amount of the general insurer or Level 2 insurance group, both at the time of application and subsequently. The ultimate responsibility for complying with the requirements to obtain and maintain approval for the use of an Internal Model-based Method rests with the Board of directors of a general insurer or Level 2 insurance group.
Guidance (1)
In Force
March 2009
Prudential Standard GPS 113 Capital Adequacy: Internal Model-based Method (GPS 113) sets out APRA’s requirements of general insurers and Level 2 insurance groups (insurers) in relation to the Internal Modelbased Method.  |  File type: PDF  |  File size: 231.23 KB
114

Capital Adequacy: Asset Risk Charge

GPS
114
GRS
114.0
GRS
114.1
GRS
114.2
GRS
114.3
GRS
114.4
GRS
114.0_G
GRS
114.1_G
GRS
114.3_G
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard requires a general insurer or Level 2 insurance group to maintain adequate capital against the asset risks associated with its activities. The ultimate responsibility for the prudent management of capital of a general insurer or Level 2 insurance group rests with its Board of directors. The Board must ensure the general insurer or Level 2 insurance group maintains an adequate level and quality of capital commensurate with the scale, nature and complexity of its business and risk profile, such that it is able to meet its obligations under a wide range of circumstances. The Asset Risk Charge is the minimum amount of capital required to be held against asset risks. The Asset Risk Charge relates to the risk of adverse movements in the value of a general insurer’s or Level 2 insurance group’s on-balance sheet and off-balance sheet exposures. Asset risk can be derived from a number of sources, including market risk and credit risk.
Guidance (0)
Reporting Standards (8)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of a general insurer’s Asset Risk Charge. It includes Form GRF 114.0 Asset Risk Charge and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 114 Capital Adequacy: Asset Risk Charge.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s assets by counterparty grade. It includes Form GRF 114.1 Assets by Counterparty Grade and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s derivatives activities. It includes Form GRF 114.2 Derivatives Activity and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s off-balance sheet business. It includes Form GRF 114.3 Off-balance Sheet Business and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s investment assets. It includes Form GRF 114.4 Details of Investment Assets and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of the Level 2 insurance group’s Asset Risk Charge. It includes Form GRF 114.0_G Asset Risk Charge (G) and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 114 Capital Adequacy: Asset Risk Charge.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the breakdown of a Level 2 insurance group’s assets by counterparty grade. It includes Form GRF 114.1_G Assets by Counterparty Grade (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s off-balance sheet business. It includes Form GRF 114.3_G Off-balance Sheet Business (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
115

Capital Adequacy: Insurance Risk Charge

GPS
115
GRS
115.0
GRS
115.1
GRS
115.0_G
GRS
115.1_G
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard requires a general insurer or Level 2 insurance group to maintain adequate capital against the insurance risks associated with its activities. The ultimate responsibility for the prudent management of capital of a general insurer or Level 2 insurance group rests with its Board of directors. The Board must ensure that the general insurer or Level 2 insurance group maintains an adequate level and quality of capital commensurate with the scale, nature and complexity of its business and risk profile, such that it is able to meet its obligations under a wide range of circumstances.
Reporting Standards (4)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s Insurance Risk Charge on outstanding claims liabilities. It includes Form GRF 115.0 Outstanding Claims Liabilities – Insurance Risk Charge and associated specific instructions and must be read in conjunction with the general instruction guide, Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge and Prudential Standard GPS 320 Actuarial and Related Matters.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s insurance risk charge on premiums liabilities. It includes Form GRF 115.1 Premiums Liabilities – Insurance Risk Charge and associated specific instructions and must be read in conjunction with the general instruction guide, Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge and Prudential Standard GPS 320 Actuarial and Related Matters.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of a Level 2 insurance group’s insurance risk charge for outstanding claims liabilities. It includes Form GRF 115.0A_G Outstanding Claims Liabilities – Insurance Risk Charge – Australia by Class of Business (G) and Form GRF 115.0B_G Outstanding Claims Liabilities – Insurance Risk Charge – Australia by Region (G) and associated specific instructions and must be read in conjunction with the general instruction guide, Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge and Prudential Standard GPS 320 Actuarial and Related Matters
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of a Level 2 insurance group’s insurance risk charge for premiums liabilities. It includes Form GRF 115.1A_G Premiums liabilities – Insurance Risk Charge – Australia by Class of Business (G) and Form GRF 115.1B_G Premiums liabilities – Insurance Risk Charge – Australia by Region (G) and associated specific instructions and must be read in conjunction with the general instruction guide, Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge and Prudential Standard GPS 320 Actuarial and Related Matters.
116

Capital Adequacy Insurance Concentration Risk Charge

GPS
116
GPG
116
GRS
116.0
GRS
116.1
GRS
116.0_G
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard requires a general insurer or Level 2 insurance group to maintain adequate capital against the risks associated with insurance concentration in its activities. The ultimate responsibility for the prudent management of capital of a general insurer or Level 2 insurance group rests with its Board of directors. The Board must ensure that the general insurer or Level 2 insurance group maintains an adequate level and quality of capital commensurate with the scale, nature and complexity of its business and risk profile, such that it is able to meet its obligations under a wide range of circumstances.
Guidance (1)
In Force
March 2013
Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge (GPS 116) sets out APRA’s requirements in relation to insurance concentration risk. This prudential practice guide (PPG) assists general insurers and Level 2 insurance groups in complying with those requirements and, more generally, to outline prudent practices in relation to insurance concentration risk.   |  File type: PDF  |  File size: 167.08 KB
Reporting Standards (3)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s Insurance Concentration Risk Charge. It includes Form GRF 116.0 Insurance Concentration Risk Charge and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.
In Force
In effect from 31 December 2014
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a lenders mortgage insurer’s Probable Maximum Loss and Insurance Concentration Risk Charge. It includes Form GRF 116.1 Probable Maximum Loss for LMIs – Standard Loans, Form GRF 116.2 Probable Maximum Loss for LMIs – Non-Standard Loans, Form GRF 116.3 Probable Maximum Loss for LMIs – Commercial Loans, Form GRF 116.4 LMI Concentration Risk Charge and Form GRF 116.5 Probable Maximum Loss for LMIs – Additional Information and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.
In Force
In effect from 30 June 2016
This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of the Level 2 insurance group’s insurance concentration risk charge. It includes Form GRF 116.0_G Insurance Concentration Risk Charge (G) and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.
117

Capital Adequacy Asset Concentration Risk Charge

GPS
117
GRS
117.0
GRS
117.0_G
Prudential Standards (1)
In Force
In effect from 13 February 2017
This Prudential Standard requires a general insurer or Level 2 insurance group to maintain adequate capital against the risks associated with asset concentration in its activities. The ultimate responsibility for the prudent management of capital of a general insurer or Level 2 insurance group rests with its Board of directors. The Board must ensure that the general insurer or Level 2 insurance group maintains an adequate level and quality of capital commensurate with the scale, nature and complexity of its business and risk profile, such that it is able to meet its operations under a wide range of circumstances.
Guidance (0)
Reporting Standards (2)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s Asset Concentration Risk Charge. It includes Form GRF 117.0 Asset Concentration Risk Charge and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 117 Capital Adequacy: Asset Concentration Risk Charge.
In Force
In effect from 30 June 2016
This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of a Level 2 insurance group’s asset concentration risk charge. It includes Form GRF 117.0_G Asset Concentration Risk Charge (G) and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 117 Capital Adequacy: Asset Concentration Risk Charge.
118

Capital Adequacy Operational Risk Charge

GPS
118
GRS
118.0
GRS
118.0_G
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard requires a general insurer or Level 2 insurance group to maintain adequate capital against the operational risks associated with its activities. The ultimate responsibility for the prudent management of capital of a general insurer or Level 2 insurance group rests with its Board of directors. The Board must ensure that the general insurer or Level 2 insurance group maintains an adequate level and quality of capital commensurate with the scale, nature and complexity of its business and risk profile, such that it is able to meet its obligations under a wide range of circumstances.
Reporting Standards (2)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s Operational Risk Charge. It includes Form GRF 118.0 Operational Risk Charge and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 118 Capital Adequacy: Operational Risk Charge.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of the Level 2 insurance group’s Operational Risk Charge. It includes Form GRF 118.0_G Operational Risk Charge (G) and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 118 Capital Adequacy: Operational Risk Charge.
120

Assets in Australia

GPS
120
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard specifies certain assets that are excluded from being treated as ‘assets in Australia’ by a general insurer for the purposes of section 28 of the Insurance Act 1973. Section 28 requires all general insurers to maintain assets in Australia (excluding goodwill and other amounts excluded by this Prudential Standard) of a value that equals or exceeds the total amount of the general insurer’s liabilities in Australia (other than its pre-authorisation liabilities). This requirement is designed to ensure that the total value of assets held within the jurisdictional reach of APRA and the Australian courts is sufficient to meet a general insurer’s liabilities in Australia for the purposes of subsection 116(3) of the Insurance Act 1973.
Related resources (1)

Financial statements

300

Statement of Financial Position

GRS
300.0
GRS
300.0_G
Reporting Standards (2)
In Force
In effect from 1 January 2013
This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s statement of financial position. It includes Form GRF 300.0 Statement of Financial Position and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 30 June 2016
This Reporting Standard sets out the requirements for the provision of information to APRA relating to the Level 2 insurance group’s financial position. It includes Form GRF 300.0_G Statement of Financial Position (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
302

Statement of Financial Position by Region

GRS
302.0
Reporting Standards (1)
In Force
In effect from 30 June 2016
This Reporting Standard sets out the requirements for the provision of information to APRA relating to the regional breakdown of a Level 2 insurance group’s financial position. It includes Form GRF 302.0_G Statement of Financial Position by Region (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
310

Financial Sector (Collection of Data)

GRS
310.0
GRS
310.1
GRS
310.2
GRS
310.3
GRS
310.0_G
Guidance (0)
Reporting Standards (5)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s income statement. It includes Form GRF 310.0 Income Statement and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s premium revenue and reinsurance expenses. It includes Form GRF 310.1 Premium Revenue and Reinsurance Expense and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s claims expense and reinsurance recoveries. It includes Form GRF 310.2 Claims Expense and Reinsurance Recoveries and associated specific instructions and must be read in conjunction with the general instruction guide
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the details of a general insurer’s income and expenses. It includes Form GRF 310.3 Details of Income and Expenses and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 30 June 2016
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to the Level 2 insurance group’s income statement. It includes Form GRF 310.0_G Income Statement (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
400

Statement of Risk by Country

GRS
400.0
Reporting Standards (1)
In Force
In effect from 1 January 2013
This Reporting Standard sets out the requirements for the provision of selected information to APRA relating to a general insurer’s business written outside Australia. It includes Form GRF 400.0 Statement of Risk by Country and associated specific instructions and must be read in conjunction with the general instruction guide.
410

Movement in Outstanding Claims Liabilities

GRS
410.0
Reporting Standards (1)
In Force
In effect from 1 January 2013
This Reporting Standard sets out the requirements for the provision of information to APRA relating to the movement in a general insurer’s outstanding claims liabilities. It includes Form GRF 410.0 Movement in Outstanding Claims Liabilities and associated specific instructions and must be read in conjunction with the general instruction guide.
420

Premium Revenue by State and Territory of Australia

GRS
420.0
Reporting Standards (1)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s premium revenue by State and Territory of Australia. It includes Form GRF 420.0 Premium Revenue by State and Territory of Australia and associated specific instructions and must be read in conjunction with the general instruction guide.
430

Claims Expense by State and Territory of Australia

GRS
430.0
Reporting Standards (1)
In Force
In effect from 1 January 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s claims expense by State and Territory of Australia. It includes Form GRF 430.0 Claims Expense by State and Territory of Australia and associated specific instructions and must be read in conjunction with the general instruction guide.
460

Financial Sector (Collection of Data)

GRS
460.0
GRS
460.1
GRS
460.0_G
GRS
460.1
Guidance (0)
Reporting Standards (4)
In Force
In effect from 31 December 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s exposures to reinsurance counterparties. It includes Form GRF 460.0 Reinsurance Assets by Counterparty and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 31 December 2013
Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s exposures to reinsurance counterparties. It includes Form GRF 460.1 Exposure Analysis by Reinsurance Counterparty and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 31 December 2013
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s exposures to reinsurance counterparties. It includes Form GRF 460.0_G Reinsurance Assets by Counterparty (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
In Force
In effect from 31 December 2013
Level 2: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s exposures to reinsurance counterparties. It includes Form GRF 460.1_G Exposure Analysis by Reinsurance Counterparty (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
Related resources (2)

Governance

310

Audit and Related Matters

3PS
310
Prudential Standards (1)
In Force
In effect from 1 January 2015
This Prudential Standard requires an authorised deposit-taking institution (ADI) to ensure that APRA has access to independent advice from an auditor relating to the operations, internal controls and information provided to APRA in respect of that ADI. In addition, the standard sets out requirements for the roles and responsibilities of the appointed auditor.
310

Audit and Related Matters

GPS
310
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard sets out the roles and responsibilities of a general insurer’s and Level 2 insurance group’s Appointed Auditor and Group Auditor (Auditor). It also sets out the obligations of a general insurer or Level 2 insurance group to make arrangements to enable its Auditor to fulfil their responsibilities. The ultimate responsibility for providing impartial advice in relation to the operations, financial condition and internal controls of a general insurer or Level 2 insurance group rests with the Auditor. This advice is designed to assist the Board and senior management in carrying out their responsibility for the sound and prudent management of the general insurer or Level 2 insurance group.
320

Actuarial and Related Matters

CPS
320
CPG
320
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard aims to ensure that a general insurer, life company or private health insurer has access to appropriate actuarial advice to assist in the sound and prudent operation of its business. It sets out the requirements for insurers to appoint an Appointed Actuary and to establish a framework for the provision of actuarial advice. It also sets out the functions of the Appointed Actuary role.
Guidance (1)
In Force
In effect from 1 July 2019
This prudential practice guide was developed to support insurers and actuaries in fulfilling their responsibilities to comply with the requirements contained in CPS 320. Not all practices outlined in this guide will be relevant for every insurer, and some aspects may vary depending upon the size, business mix and complexity of the insurer’s business operations.  |  File type: PDF  |  File size: 503.62 KB
510

Governance

CPS
510
Prudential Standards (1)
In Force
Governance
This Prudential Standard sets out minimum foundations for good governance of an APRA-regulated institution in the deposit-taking, general insurance, life insurance and private health insurance industries, and of a Head of a group. Its objective is to ensure that an institution and group is managed soundly and prudently by a competent Board (or equivalent), which can make reasonable and impartial business judgements in the best interests of the institution and group and which duly considers the impact of its decisions on depositors and/or policyholders.
Related resources (1)
511

Remuneration

CPG
511
Guidance (1)
In Force
November 2009
This prudential practice guide aims to assist institutions regulated by the Australian Prudential Regulation Authority (APRA) in considering and prudently managing the risks that may arise from their remuneration arrangements.   |  File type: PDF  |  File size: 309.02 KB
520

Fit and Proper

CPS
520
CRF
520
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard sets out minimum requirements for APRA-regulated institutions in determining the fitness and propriety of individuals to hold positions of responsibility. Its objective is to ensure that an institution prudently manages the risks that persons acting in responsible person positions who are not fit and proper pose to the institution’s business and financial standing.
Guidance (0)
Reporting Forms (1)
In Force
May 2013
In order to assist entities in complying with the requirement to ensure that information provided to APRA remains correct for all responsible persons, the form can be submitted at any time, however it will be provided on an annual basis to all entities submitting annual returns via D2A. Entities can use the annual form to correct and update the information they have provided to APRA throughout the year.  |  File type: PDF  |  File size: 130.35 KB
520

Fit and Proper

GPG
520
Guidance (1)
In Force
July 2008
Prudential Standard GPS 520 Fit and Proper (GPS 520) sets out APRA’s requirements in relation to assessing the fitness and propriety of responsible persons of insurers and authorised NOHCs (collectively referred to as regulated institutions). This prudential practice guide aims to assist regulated institutions in complying with those requirements and, more generally, to outline prudent practices in relation to fitness and propriety.  |  File type: PDF  |  File size: 83.94 KB

Other requirements

001

Definitions

3PS
1
Prudential Standards (1)
In Force
In effect from 1 July 2017
This Prudential Standard defines key terms referred to in other Prudential Standards applicable to Level 3 Heads of Level 3 groups. All Prudential Standards applicable to Level 3 Heads must be read in conjunction with this Prudential Standard.
001

Definitions

GPS
1
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard defines key terms referred to in other prudential standards applicable to general insurers and Level 2 insurance groups. All prudential standards applicable to general insurers and Level 2 insurance groups must be read in conjunction with this Prudential Standard.
Reporting Standards (0)
410

Transfer and Amalgamation of Insurance Business for General Insurers

GPS
410
Prudential Standards (1)
In Force
In effect from 13 April 2008
This Prudential Standard deals with the transfer or amalgamation of insurance business of a general insurer. Insurers transferring or amalgamating insurance business in accordance with the Act are subject to procedural requirements set out in the Act and this Standard. These requirements are designed to ensure that affected policyholders, and other interested members of the public, are informed about any such transfer or amalgamation, are given accurate information about it, and are provided with the opportunity to obtain more detailed particulars if they wish to do so.

Risk management

220

Risk Management

CPS
220
CPG
220
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard requires an APRA-regulated institution and a Head of a group to have systems for identifying, measuring, evaluating, monitoring, reporting, and controlling or mitigating material risks that may affect its ability, or the ability of the group it heads, to meet its obligations to depositors and/or policyholders. These systems, together with the structures, policies, processes and people supporting them, comprise an institution’s or group’s risk management framework.
Guidance (1)
In Force
April 2018
This PPG aims to assist APRA-regulated institutions in complying with Prudential Standard CPS 220 Risk Management (CPS 220) and, more generally, to outline prudent practices in relation to risk management.  |  File type: PDF  |  File size: 675.49 KB
220

Credit Risk

GPG
220
Guidance (1)
In Force
July 2008
Prudential Standard GPS 220 Risk Management (GPS 220) sets out APRA’s requirements of insurers in relation to risk management. This prudential practice guide aims to assist insurers in complying with those requirements in relation to credit risk and, more generally, to outline prudent practices in relation to credit risk management.   |  File type: PDF  |  File size: 63.35 KB
221

Aggregate Risk Exposures

3PS
221
3PG
221
Prudential Standards (1)
In Force
In effect from 1 July 2017
This Prudential Standard requires a Level 3 Head to ensure that an aggregate risk exposure external to the Level 3 group does not expose prudentially regulated institutions within the group to excessive risk. The ultimate responsibility for the aggregate risk exposure policy of a Level 3 group rests with the Board of its Level 3 Head.
Guidance (1)
In Force
July 2017
Prudential Standard 3PS 221 Aggregate Risk Exposures (3PS 221) sets out APRA’s requirements in relation to the aggregation of risks across a Level 3 group. This PPG aims to assist Level 3 Heads to comply with those requirements and, more generally, to outline prudent practices in relation to certain aggregation matters.  |  File type: PDF  |  File size: 503.56 KB
222

Intra-group Transactions and Exposures

3PS
222
3PG
222
Prudential Standards (1)
In Force
In effect from 1 July 2017
This Prudential Standard requires a Level 3 Head to ensure that associations and dealings within the Level 3 group do not expose prudentially regulated institutions within the group to excessive risk.
Guidance (1)
In Force
July 2017
Prudential Standard 3PS 222 Intra-group Transactions and Exposures (3PS 222) sets out APRA’s requirements in relation to the associations and dealings between institutions in a Level 3 group. This PPG aims to assist Level 3 Heads to comply with those requirements and, more generally, to outline prudent practices in relation to certain intra-group matters.  |  File type: PDF  |  File size: 505.33 KB
226

Margining and Risk Mitigation for Non-centrally Cleared Derivatives

CPS
226
Prudential Standards (1)
In Force
In effect from 1 September 2017
This Prudential Standard requires an APRA covered entity to have appropriate margining practices in relation to non-centrally cleared derivatives. An APRA covered entity must exchange variation margin and post and collect initial margin with a covered counterparty, subject to certain criteria.
230

Reinsurance Management

GPS
230
GPG
230
Prudential Standards (1)
In Force
In effect from 1 January 2014
This Prudential Standard requires a general insurer and a Level 2 insurance group to maintain, as part of its overall risk management framework, a specific reinsurance management framework to manage the risks arising from its reinsurance arrangements.
Guidance (1)
In Force
February 2006
Prudential Standard GPS 220 Risk Management (GPS 220) sets out APRA’s requirements of general insurers (insurers) in relation to risk management. This prudential practice guide aims to assist insurers in complying with those requirements in relation to operational risk and, more generally, to outline prudent practices in relation to operational risk management.   |  File type: PDF  |  File size: 63.84 KB
231

Outsourcing

CPS
231
CPG
231
Prudential Standards (1)
In Force
In effect from 1 July 2017
This Prudential Standard requires that all outsourcing arrangements involving material business activities entered into by an APRA-regulated institution and a Head of a group be subject to appropriate due diligence, approval and ongoing monitoring. All risks arising from outsourcing material business activities must be appropriately managed to ensure that the APRA-regulated institution, or the group it heads, is able to meet its financial and service obligations to its depositors and/or policyholders.
Guidance (1)
In Force
October 2006
Prudential Standard APS 231 Outsourcing, Prudential Standard GPS 231 Outsourcing and Prudential Standard LPS 231 Outsourcing (Prudential Standards) set out the Australian Prudential Regulation Authority’s (APRA's) requirements in relation to outsourcing. This prudential practice guide aims to assist regulated institutions in complying with those requirements and, more generally, to outline prudent practices in relation to managing outsourcing arrangements. For the purposes of this guide, ‘regulated institution’ refers to an authorised deposit-taking institution (ADI) or a general insurer or a life company (including a friendly society) regulated by APRA.   |  File type: PDF  |  File size: 85.64 KB
Related resources (1)
232

Business Continuity Management

CPS
232
Prudential Standards (1)
In Force
In effect from 1 July 2017
This Prudential Standard requires each APRA-regulated institution and Head of a group to implement a whole-of-business approach to business continuity management that is appropriate to the nature and scale of the operations. Business continuity management increases resilience to business disruption arising from internal and external events and may reduce the impact on the institution’s or group’s business operations, reputation, profitability, depositors, policyholders and other stakeholders.
232

Custody Arrangements

GPG
232
Guidance (1)
In Force
October 2006
This prudential practice guide applies to external custody arrangements (where an insurer engages an external party to act as its custodian), including arrangements with a related entity (or entities) in the same corporate group. This prudential practice guide does not apply to arrangements that either insurers or their custodians have with securities depositories, whether in Australia or overseas.   |  File type: PDF  |  File size: 87.99 KB
233

Pandemic Planning

CPG
233
Guidance (1)
In Force
May 2013
This PPG aims to assist regulated institutions in considering and prudently managing the risks posed by a potential influenza pandemic, or any other widespread outbreak of contagious disease that could affect their operations. The information in this guide supports compliance with Prudential Standards CPS 232 Business Continuity Management (CPS 232) and SPS 232 Business Continuity Management (SPS 232), which set out the Australian Prudential Regulation Authority’s (APRA) requirements in relation to business continuity management for authorised deposit-taking institutions (ADIs), general insurers, life companies and registrable superannuation entity (RSE) licensees (RSE licensees). This guide also supports compliance with risk management and other relevant prudential requirements.  |  File type: PDF  |  File size: 268.63 KB
234

Information Security

CPS
234
CPG
234
Prudential Standards (1)
In Force
In effect from 1 July 2019
This Prudential Standard aims to ensure that an APRA-regulated entity takes measures to be resilient against information security incidents (including cyber-attacks) by maintaining an information security capability commensurate with information security vulnerabilities and threats.
Guidance (1)
In Force
June 2019
This PPG aims to assist regulated entities in maintaining information security. It is designed to provide guidance to Boards, senior management, risk management and information security specialists (management and operational).  |  File type: PDF  |  File size: 837.05 KB
Related resources (2)
235

Managing Data Risk

CPG
235
Guidance (1)
In Force
September 2013
This PPG aims to assist regulated entities in managing data risk. It is designed to provide guidance to senior management, risk management and technical specialists (both management and operational). The PPG targets areas where APRA continues to identify weaknesses as part of its ongoing supervisory activities. The PPG does not seek to provide an allencompassing framework, or to replace or endorse existing industry standards and guidelines.  |  File type: PDF  |  File size: 328.44 KB
240

Insurance Risk

GPG
240
Guidance (1)
In Force
February 2006
Prudential Standard GPS 220 Risk Management (GPS 220) sets out APRA’s requirements of general insurers (insurers) in relation to risk management. This prudential practice guide aims to assist insurers in complying with those requirements in relation to insurance risk and, more generally, to outline prudent practices in relation to insurance risk management.   |  File type: PDF  |  File size: 71.3 KB
245

Reinsurance Management Strategy

GPG
245
Guidance (1)
In Force
July 2008
Prudential Standard GPS 230 Reinsurance Management (GPS 230) sets out APRA’s requirements of insurers in relation to reinsurance management. This prudential practice guide aims to assist insurers in complying with those requirements and, more generally, to outline prudent practices in relation to reinsurance management.   |  File type: PDF  |  File size: 68.24 KB
250

Balance Sheet and Market Risk

GPG
250
Guidance (1)
In Force
February 2006
Prudential Standard GPS 220 Risk Management (GPS 220) sets out APRA’s requirements of general insurers (insurers) in relation to risk management. This prudential practice guide aims to assist insurers in complying with those requirements in relation to balance sheet and market risk and, more generally, to outline prudent practices in relation to balance sheet and market risk management.   |  File type: PDF  |  File size: 68.48 KB