Featured Product

    APRA Issues Corrections to Prudential Standards for General Insurers

    June 26, 2019

    APRA issued minor corrections to two prudential standards for general insurers: GPS 110 on capital adequacy requirements and GPS 116 on insurance concentration risk charge as part of the capital adequacy. The minor corrections reinstate words that were inadvertently deleted from the standards when they were remade in April 2019. The updated standards have been now published in the Federal Register of Legislation, with the effective date for the revised versions being July 01, 2019.

    APRA, on April 17, 2019, had determined nine general insurance prudential standards, reflecting the consequential amendments arising from the introduction of the new Prudential Standard CPS 320 Actuarial and Related Matters (CPS 320) and Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340). During the process of revoking the former versions of those nine general insurance prudential standards and determining the new versions of those standards, several words were inadvertently omitted from GPS 110 and GPS 116. The omitted words have been reinstated through this revision. 

    GPS 110 requires a general insurer or Level 2 insurance group to maintain adequate capital against the risks associated with its activities. GPS 116, however, requires a general insurer or Level 2 insurance group to maintain adequate capital against the risks associated with insurance concentration in its activities. The key requirements of GPS 110 are that a general insurer or Level 2 insurance group must:

    • Have an Internal Capital Adequacy Assessment Process and must maintain required levels of capital
    • Determine its prescribed capital amount having regard to a range of risk factors that may adversely impact a general insurer or Level 2 insurance group’s ability to meet its obligations. These factors include insurance risk, insurance concentration risk, asset risk, asset concentration risk and operational risk
    • Comply with any supervisory adjustment to capital imposed by APRA
    • Make certain public disclosures about the capital adequacy position of the general insurer or Level 2 insurance group
    • Seek consent from APRA for certain planned capital reductions of the general insurer or Level 2 insurance group
    • Inform APRA of any significant adverse changes in the general insurer or Level 2 insurance group’s capital position

     

    Related Links

    Effective Date: July 01, 2019

    Keywords: Asia Pacific, Australia, Insurance, General Insurers, Prudential Standards, GPS 110, GPS 116, Capital Adequacy, Concentration Risk, APRA

    Related Articles
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    News

    EBA Publishes Report on Asset Encumbrance of Banks in EU

    EBA published the annual report on asset encumbrance of banks in EU.

    January 18, 2021 WebPage Regulatory News
    News

    MAS Revises Guidelines on Technology Risk Management

    MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.

    January 18, 2021 WebPage Regulatory News
    News

    US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C

    FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.

    January 15, 2021 WebPage Regulatory News
    News

    EBA Proposes Guidelines for Establishing Intermediate Parent Entities

    EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.

    January 15, 2021 WebPage Regulatory News
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6462