APRA Refines Prudential Supervision Of General Insurance Groups

The Australian Prudential Regulation Authority (APRA) released a Response Paper on Prudential Supervision of General Insurance Groups on 4 October 2006, which refines the original proposals on the draft prudential framework for corporate groups involving authorised general insurers.

The original proposals were outlined in the Discussion Paper of 16 May 2005 (see our News Alert dated 24 May 2005). The proposed refinements will reduce the compliance burden for insurers and help clarify APRA's proposals.

APRA has invited written submissions on its proposals by 31 December 2006. Following the consultation period, APRA intends to release draft prudential standards and practice guides in the second quarter of 2007, taking effect from 1 July 2007, with a transitional period until 1 July 2008.