APRA consults on remaking of sunsetting life prudential standards
21 November 2022
The Australian Prudential Regulation Authority (APRA) has started a short consultation over its plans to remake four life insurance standards that are due to sunset – or cease to exist – on April 1 next year.
The four prudential standards are LPS 100 Solvency Standard, LPS 115 Capital Adequacy: Insurance Risk Charge, LPS 360 Termination values Minimum Surrender Values and Paid up Values and LPS 370 Cost of Investment Performance Guarantees.
APRA says it intends to remake the four standards without any amendments prior to the sunsetting date.
“This is based on APRA’s assessment that these standards continue to be broadly fit for purpose, and are a required part of the prudential framework,” the regulator says.
“However, APRA welcomes feedback on the four prudential standards, including any issues, from the industry’s perspective associated with these standards.”
The regulator also intends to consider more broadly the existing structure of the insurance prudential framework, as part of the strategic initiative to Modernise the Prudential Architecture (MPA).
It says feedback received as part of this consultation will be helpful in informing that approach, which will be in addition to further industry engagement and consultation on the MPA program.
Submissions should be sent to [email protected] and received by December 15.