The Australian Prudential Regulation Authority (APRA) has proposed amendments to six general insurance reporting standards, focusing on treating reinsurance recoverables from the Australian Reinsurance Pool Corporation (ARPC).
The suggestions follow APRA's proposal to make prudential framework amendments published in April 2022 to support the government's cyclone and cyclone-related flood damage reinsurance pool.
The changes aim to align the general insurance reporting framework with APRA's clarification on reinsurance recoverables issued in April 2022 and introduce ARPC as an “APRA-authorised reinsurer.”
In a letter to the industry, APRA explained: “APRA-authorised reinsurer means an insurer carrying on reinsurance business. For the purposes of this definition, a Lloyd's underwriter, as defined under the Insurance Act, is an APRA-authorised reinsurer if it carries on reinsurance business. The Australian Reinsurance Pool Corporation is also an APRA-authorised reinsurer for the purposes of this definition.”
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APRA suggested applying its recommendations in the following reporting standards:
The regulator seeks industry feedback on its proposal, which must be sent to [email protected] by June 30, 2022. It expects to finalise the reporting framework in time for submission of data for reporting periods commencing July 01, 2022.
