APRA plans to remake four life insurance prudential standards
The standards are set to be remade before 1 April.
The Australian Prudential Regulation Authority (APRA) announced that it would remake four life insurance prudential standards without amendment prior to the sunsetting date of 1 April 2023.
After receiving submissions from the country’s insurers during a short consultation, the regulatory board decided that these prudential standards “continue to be broadly fit for purpose and are a required part of the prudential framework.”
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These four life insurance prudential standards are the Prudential Standard LPS 100 Solvency Standard (LPS 100); the Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge (LPS 115); the Prudential Standard LPS 360 Termination Values, Minimum Surrender Values and Paid-up Values (LPS 360); and the Prudential Standard LPS 370 Cost of Investment Performance Guarantees (LPS 370).
APRA also cited that they received suggestions stating proposed technical modifications for the LPS360, but the regulatory board will not incorporate them.
However, APRA will consider them further “when reviewing the insurance prudential framework as part of its strategic initiative to Modernise the Prudential Architecture (MPA) programme.”