Australia Enhances Rules Governing Life Insurance Companies
April 16, 2010
Australia Enhances Rules Governing Life Insurance Companies
The Australian Prudential Regulation Authority (APRA) has released final prudential standards on enhancements to the prudential framework for life insurance companies.
Legislation was passed in 2009 that gave APRA power to regulate non-operating holding companies (NOHCs) of life insurance companies, including the power to determine prudential standards for life NOHCs. APRA will apply to these NOHCs the same governance and fit and proper standards that currently apply to NOHCs of authorised deposit-taking institutions (ADIs) and general insurers.
APRA is also making some limited amendments to the audit and actuarial requirements for life insurance companies. These amendments clarify APRA’s requirements and align them more closely with those for ADIs and general insurers.
The package released today includes a response paper to submissions received on APRA’s draft proposals of May 2009 as well as the following revised prudential standards:
APRA Executive Member John Trowbridge said these enhancements to the prudential framework for life insurance companies are important for the protection of policyholders.
For more information on Australia Enhances Rules Governing Life Insurance Companies please refer to www.xLife.com.au.
The Australian Prudential Regulation Authority (APRA) has released final prudential standards on enhancements to the prudential framework for life insurance companies.
Legislation was passed in 2009 that gave APRA power to regulate non-operating holding companies (NOHCs) of life insurance companies, including the power to determine prudential standards for life NOHCs. APRA will apply to these NOHCs the same governance and fit and proper standards that currently apply to NOHCs of authorised deposit-taking institutions (ADIs) and general insurers.
APRA is also making some limited amendments to the audit and actuarial requirements for life insurance companies. These amendments clarify APRA’s requirements and align them more closely with those for ADIs and general insurers.
The package released today includes a response paper to submissions received on APRA’s draft proposals of May 2009 as well as the following revised prudential standards:
- Prudential Standard LPS 510 Governance (LPS 510);
- Prudential Standard LPS 520 Fit and Proper (LPS 520);
- Prudential Standard LPS 310 Audit and Related Matters (LPS 310); and
- Prudential Standard LPS 320 Actuarial and Related Matters (LPS 320).
APRA Executive Member John Trowbridge said these enhancements to the prudential framework for life insurance companies are important for the protection of policyholders.
For more information on Australia Enhances Rules Governing Life Insurance Companies please refer to www.xLife.com.au.
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