APRA, ASIC publish papers for industry’s data collection

This aims to assist the industry in conducting detailed assessments of risks.

The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have jointly released two discussion papers outlining their intentions to improve data collection for the life and general insurance sectors.

Under the Insurance Data Transformation (IDT) project, APRA and ASIC are aiming to collect more detailed data. 

This initiative will empower regulators, policymakers, and insurers to conduct more comprehensive assessments of the risks facing the insurance industry.

In addition to benefiting industry stakeholders, the publication of some of this data, subject to a separate consultation, will enhance consumers' understanding of insurance companies' operations, products, and services.

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Although existing data collections have provided valuable insights into the life insurance industry, it has become increasingly evident to the agencies that the aggregated nature of this data can limit its usefulness. 

The agencies often encounter "insights gaps" where the data is either rigid or inadequate in effectively identifying critical issues and emerging trends that may pose prudential and conduct risks and potential harm. 

Overcoming these limitations is a strategic imperative for the agencies, as they aim to make data-driven decisions more effectively.