APRA takes step toward enhancing insurance statistical publications

The Australian Prudential Regulation Authority (APRA) has responded to the consultation regarding proposed updates to its quarterly insurance statistical publications.

These revisions come in light of the implementation of the Australian Accounting Standards Board 17 Insurance Contracts (AASB 17) and new capital requirements for private health insurers.

Enhancements to insurance statistical publications in Australia

The updates will feature revised content and improved data presentation using dynamic dashboards and charts.

The consultation feedback was largely supportive, although some respondents sought more clarity on handling confidential data and the future status of other APRA insurance publications.

APRA confirmed that confidentiality protections will continue and that further consultations will address changes to other insurance publications, including data confidentiality.

Additionally, the regulator has decided to include some extra data items beyond what was initially proposed, in response to stakeholder feedback.

The enhanced quarterly insurance statistics are expected to be released in August 2024.

APRA and ASIC finalise FAR guidance for insurers and super funds

APRA and the Australian Securities and Investments Commission (ASIC) have issued final guidance for the Financial Accountability Regime (FAR), which will extend to the insurance and superannuation sectors from March 15, 2025.

FAR aims to strengthen accountability and risk governance among APRA-regulated entities, including their directors and senior executives.

Key updates include:

• amendments to regulator rules outlining key functions for the FAR register of accountable persons, specific to the insurance and superannuation sectors, as detailed in the Financial Accountability Regime Regulator Rules Amendment Instrument No. 1 of 2024 and the Financial Accountability Regime Act (Information for register) Regulator Rules 2024
• a joint letter from APRA and ASIC summarising key consultation issues, including the application of key functions

The final guidance package also offers:

• a revised information paper to assist entities and accountable persons in understanding and complying with FAR obligations, incorporating final key functions and their descriptions
• an updated guide and template for accountability statements, aiding entities with FAR’s enhanced notification obligations
• reporting form instructions for insurance and superannuation entities on how to submit required information to APRA and ASIC

These updates follow a joint public consultation on the draft amendments and key functions descriptions for the insurance and superannuation sectors.

The complete guidance materials are available on the FAR pages of the APRA and ASIC websites.