The Australian Prudential Regulation Authority is adding a second deputy chair for the first time, with the federal government appointing two senior leaders as the regulator advances its most significant operational resilience reforms in years. For insurers, the most practically relevant finding in the announcement is what does not change: Suzanne Smith will continue overseeing general insurance, life insurance and private health insurance regardless of the new appointments, meaning the insurance sector's direct supervisory relationship remains undisturbed.
Treasurer Jim Chalmers announced that current APRA member Therese McCarthy Hockey will become deputy chair from July 9, while David Bradbury will commence as deputy chair on September 1. Both appointments are for five-year terms following a merit-based recruitment process chaired by Treasury Secretary Jenny Wilkinson, with APRA chair John Lonsdale and Attorney-General's Department Secretary Katherine Jones serving on the selection panel. McCarthy Hockey will continue leading the banking portfolio; Bradbury will assume responsibility for superannuation from September, with Lonsdale overseeing that portfolio until then.
The introduction of a second deputy chair reflects a supervisory workload that has grown materially. APRA began supervising compliance with Prudential Standard CPS 230 Operational Resilience - which took effect July 1, 2025 - requiring regulated entities including insurers to strengthen operational risk management, business continuity and oversight of material service providers. In its Corporate Plan, APRA said it will continue targeted supervision of operational resilience while progressing governance reforms after identifying weaknesses among a number of regulated entities.
The regulator has identified four areas shaping its supervisory work over the coming year: geopolitical developments, cyber threats, operational disruption and financial risks. Treasury said establishing two deputy chair positions would strengthen APRA's governance arrangements as it supervises an increasingly complex financial system across banking, insurance and superannuation simultaneously.
McCarthy Hockey has been with APRA for eight years and joined its governing board in October 2022. She brings more than 20 years of experience in financial markets and currently oversees banking supervision, strategy, risk and compliance.
Bradbury joins from his role as chair of the Board of Taxation. His career spans senior positions in government, international economic policy and professional services, including Parliamentary Secretary to the Treasurer and Assistant Treasurer between 2010 and 2013, and roles at the OECD and KPMG Australia. His background covers taxation policy, fiscal policy, regulation and public administration - a profile that complements McCarthy Hockey's financial markets depth rather than duplicating it.
Lonsdale said the appointments strengthen the regulator's leadership as it manages a changing risk landscape. "Australia has a stable and resilient financial system which underpins the effective functioning of the economy, but the challenges in front of us are significant," he said, adding that APRA faces "a volatile external environment with risks arising across geopolitical, technological, operational and financial channels" and that managing those challenges successfully would support better outcomes for the Australian community.
