The Australian Prudential Regulation Authority
(APRA) has released the final prudential standards
that became effective from 1 July 2010.
The changes will align prudential reporting closely with
statutory reporting. APRA expects that this will produce the
following key benefits:
- a simplified reporting process by general insurers to APRA
- a clearer view for APRA of insurer performance, and
- enhanced quality of discussions between APRA and individual
insurers concerning the insurer's performance.
The affected Prudential Standards are GPS 001: Definitions, GPS
110: Capital adequacy, GPS 112: Capital adequacy: Measurement of
capital, GPS 113 Capital Adequacy: Internal Model-based Method, GPS
114 Capital Adequacy: Investment Risk Capital Charge, GPS 115
Capital Adequacy: Insurance Risk Capital Charge, GPS 116 Capital
Adequacy: Concentration Risk Capital Charge, GPS 120 Assets In
Australia and GPS 310: Audit and actuarial reporting and
valuation.
