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APRA consults on refinements to the prudential framework for general insurance groups

Monday 16 May 2011

 

The Australian Prudential Regulation Authority (APRA) has today released a consultation package relating to refinements to the prudential and reporting framework for general insurance groups (GI Level 2 groups).

The package contains a discussion paper outlining the proposed changes as well as draft prudential standards and draft reporting forms and instructions.

The proposed refinements to prudential standards aim to address issues or gaps identified during implementation of the GI Level 2 group prudential framework in 2009, and to achieve better alignment with the Level 2 prudential framework for authorised deposit‑taking institutions. Consequential changes to the reporting standards aim to align aspects of GI Level 2 group reporting with the reporting framework for Level 1 general insurers and to provide some additional clarifications.

APRA is seeking comment from industry and other interested stakeholders, by 15 July 2011, on the proposals set out in the consultation package.

It is expected that the final prudential standards, reporting forms and instructions will be released by 1 December 2011, with the first reporting under the revised framework to be in respect of the six month period ending 31 December 2011.

The consultation package can be viewed on APRA's website.

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, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $6 trillion in assets for Australian depositors, policyholders and superannuation fund members.