The Australian Prudential Regulation Authority (APRA) today released the final reporting standards that will apply to general insurance groups.
They follow separate consultation and finalisation of new prudential standards for insurance group supervision announced in December 2008, which became effective on 31 March this year. The completion of the new reporting standards enables the reporting requirements of the new prudential standards to take effect.
The foundation of APRA's approach to the supervision of general insurance groups is that the group as a whole should meet essentially the same minimum capital requirements as apply to individual general insurers. Being part of a wider insurance group can alter the risk profile of an individual insurer through financial and operational inter-relationships with other group members and through decisions and initiatives taken at group level.
The reporting standards contain the necessary forms and instructions relating to data that insurance groups must submit to APRA on a semi-annual basis. The 12 standards have been finalised following extensive consultation with the insurance industry over the past two years.
APRA Member John Trowbridge said: ‘The introduction of these reporting standards completes the new prudential framework for supervising general insurers that operate as part of a corporate group. APRA will now be better positioned to monitor the financial health of insurance groups that are domiciled in Australia.’
The requirements of the reporting standards will apply to all general insurance groups that have either an APRA-authorised general insurer or an APRA-authorised non-operating holding company (NOHC) as the parent entity of the group, and will take effect for the next reporting period.
The new reporting standards and their accompanying forms and instructions can be viewed on APRA’s website.