Actuaries Institute backs APRA review of annuity capital rules

The Institute’s submission called for a more principles-based approach.

The Actuaries Institute has backed the Australian Prudential Regulation Authority’s (APRA) review of capital rules for annuity products, saying it could help expand their role in retirement income.

Danny Bechara, Chair of the Institute's Annuity Capital Settings Working Group, said aligning capital standards more closely with international regimes would support growth as Australia’s population ages, whilst maintaining protections for policyholders.

The Institute’s submission called for a more principles-based approach that lets Appointed Actuaries tailor requirements to specific portfolios and for capital relief for insurers with strong risk management.