APRA refines proposals to facilitate easier access to alternative reinsurance arrangements
The Australian Prudential Regulation Authority (APRA) has released a response paper outlining refinements to its proposed updates to the general insurance reinsurance framework. The changes aim to facilitate easier access to different forms of reinsurance, including alternative arrangements like insurance-linked securities, while continuing to safeguard policyholder interests.
The paper addresses industry feedback and outlines APRA’s revised approach, building on proposals from a consultation that commenced in November 2024.
The initiative is part of APRA’s objective “getting the regulatory balance right”, which means to promote financial system safety and stability in an efficient way. It reflects a commitment to support a resilient and adaptable insurance sector by balancing the protection provided by APRA’s capital settings with the risks, while enabling flexibility and innovation.
Industry feedback on draft prudential standards, prudential guidance, and reporting standards is invited by 30 January 2026.
The response paper is available on the APRA website at: Targeted adjustments to the general insurance reinsurance framework.
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.