APRA has imposed an extra capital requirement on RAC, citing deficiencies in outsourcing controls, conflict management, and board decision making.
In its 22-23 report, the Australian Prudential Regulation Authority summarised work it undertook to enhance sector resilience and improve policyholder outcomes, while acknowledging escalating challenges associated with affordability and climate change.
Smith spoke at the Insurance Council of Australia's Annual 2023 Conference and emphasised importance of balance in the face of issues like cost-of-living pressures and natural catastrophes.
APRA’s 2023-24 Corporate Plan sets forth strategies to bolster the continuity of financial services amid rising threats, with cyber-attacks and climate-related financial risks both key concern.
In a speech delivered August 23rd, APRA Board Member Therese McCarthy Hockey underlined the importance of the upcoming operational risk standards.
Data from APRA show costs for public liability and professional indemnity premiums are skyrocketing, however a change in accounting methods could be a factor.
APRA reminded insurers to consider alternative reinsurance arrangements, including cat bonds and ILS, with a regulatory review set for 2023-2024.
The new regime replaces the 2018 Banking Executive Accountability Regime (BEAR) and will expands its reach to include insurance companies and supers.
CPS 230 applies to insurers, banks, and supers and APRA confirmed it's set to be operational from July 1st, 2025.
The APRA study involved over 300 banks, insurers, and superannuation trustees and identified gaps that entities can use to better protect themselves.