The Australian Prudential Regulation Authority (APRA) has today released its response to submissions and final prudential standards in relation to proposals to simplify APRA’s prudential reporting requirements for general insurers.
APRA’s proposals align prudential reporting more closely with Australian equivalents to International Financial Reporting Standards (AIFRS) for general insurers. In addition to simplifying reporting, the proposals aim to provide APRA with more effective information to assess insurer performance and also enhance the dialogue between APRA and individual insurers on their performance.
No material changes were made to APRA’s initial proposals as a result of the consultation with industry. Submissions agreed that the proposals were consistent with APRA’s intention of simplifying reporting whilst maintaining the current capital framework. Responses to a quantitative impact study (QIS) undertaken by APRA showed that APRA’ proposals would lead to no material capital changes for the industry as a whole and limited changes at an individual insurer level.
Executive Member John Trowbridge said APRA was pleased with the quality of the submissions and appreciated the efforts of those insurers that participated in the QIS.
‘The changes provide benefits to industry such as reducing reporting obligations by aligning insurers’ statutory accounts with their reporting to APRA. Importantly, APRA will also be able to gain a better understanding of insurer performance and profitability under these new arrangements.’
The package released today also includes draft reporting forms and instructions, which are expected to be finalised and issued in July 2010.
The response to submissions paper and the accompanying final prudential standards, draft reporting forms and instructions are available on APRA’s website.