The Australian Prudential Regulation Authority (APRA) is seeking industry feedback on the proposed minor amendments to the prudential framework for insurance companies and authorised deposit-taking institutions (ADIs).

The consultation aims to ensure minor updates to the framework are made in a timely manner. It is a new process and is part of APRA's strategic initiative to modernise the prudential architecture.

The proposed amendments are mainly technical clarifications and do not represent any material change in policy settings.

Proposed changes

In its letter, APRA said it seeks insurance industry feedback on the following standards and guidelines:

• Prudential Practice Guide CPG 110 Internal Capital Adequacy Assessment Process and Supervisory Review (CPG 110) – general insurance, life insurance, and private health insurance (PHI)
• Prudential Standard CPS 320 Actuarial and Related Matters (CPS 320) – general insurance, life insurance, and PHI

“APRA welcomes feedback on the proposed changes to prudential standards and guidance. APRA also welcomes any feedback on this new, minor updates process, including any benefits or costs for regulated entities,” the regulator said.

You may send submissions to [email protected] until July 19, and address them to the General Manager, Policy, APRA.

APRA expects that the updated standards and guidance will take immediate effect upon finalisation.

Early this month, APRA made updates to insurance capital and reporting frameworks affected by a new accounting standard following a consultation period.