, Australia
132 views
/Erik Witsoe from Unsplash

Australia opens consultation for annuity products capital settings

The key proposal will modify the calculation of the ‘illiquidity premium’.

The Australian Prudential Regulation Authority (APRA) will initiate a public consultation on capital settings for annuity products in the second quarter of 2025. 

The move is part of APRA’s Corporate Plan 2024-25, which aims to support life insurers in expanding retirement product offerings.

The key proposal will modify the calculation of the ‘illiquidity premium’ in LPS 112 Capital Adequacy: Measurement of Capital, potentially reducing capital requirements for annuities if specific risk controls are met. 

APRA will seek feedback from industry participants and stakeholders on the proposed changes.  
 

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you design and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Markel expands APAC W&I with two underwriter hires
One appointment covers Singapore, Hong Kong, and other regional deal markets, whilst the other is based in Mumbai.
Insurance
Automation threatens 43% of insurance tasks by 2030
Nearly all insurers are speeding up adoption as technology reshapes operational models.
Insurance
APRA warns climate risks could leave 1 in 4 homes uninsured
The regulator assessed two severe scenarios covering weather losses and transition costs through to 2050.
Insurance
HSBC Life pushes preventive care shift with new programme
It combines workplace programmes, insurance expansion, education and community initiatives.
Insurance