Featured Product

    APRA Proposes to Amend Requirements of LPS 230 Related to Reinsurance

    November 03, 2017

    APRA proposed to amend the requirements of Prudential Standard LPS 230: Reinsurance (LPS 230), specifically as they relate to financial reinsurance. APRA seeks feedback from insurers about the proposed changes by December 22, 2017. APRA expects to finalize the revised standard next year, for implementation from April 01, 2018.

    The current LPS 230 requires reinsurance contracts that are potentially financial reinsurance arrangements, or that include non-standard features or clauses that may impact on the extent of risk transfer, to be submitted to APRA for approval; it requires a wide range of contracts to receive APRA approval and is very narrow in defining which contracts are exempt. APRA proposes to amend LPS 230 to align the approach to financial reinsurance with the approach taken in the general insurance industry, under the Prudential Standard GPS 230 on Reinsurance Management.

    The proposed draft standard takes a principles-based approach to determine when approval is required, rather than the current prescriptive criteria. APRA expects that this approach will allow for clearer focus on the economic substance of reinsurance arrangements; support better quality discussions between life insurers and APRA supervisors regarding the key issues in reinsurance arrangements; and be more responsive to developments in the reinsurance market. The new approach is also intended to reduce the burden on APRA and life insurers, by minimizing instances in which contracts that are not of prudential concern are required to be submitted to APRA for approval. It will create greater consistency between the general insurance and life insurance prudential frameworks.

     

    Related Links

    Comment Due Date: December 22, 2017

    Effective Date: April 01, 2018

    Keywords: Asia Pacific, Australia, Insurance, Reinsurance, Financial Reinsurance, LPS 230, Reinsurance Management, Proposed Amendments, APRA

    Related Articles
    News

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    HKMA Revises Implementation Schedule for Initial Margin Rules

    HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

    August 16, 2019 WebPage Regulatory News
    News

    HKMA Revises Guideline on Application of Banking Disclosure Rules

    HKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).

    August 16, 2019 WebPage Regulatory News
    News

    ECB Decision on Recognizing Reporting Member States Under AnaCredit

    ECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).

    August 16, 2019 WebPage Regulatory News
    News

    FASB Proposes to Extend CECL Standard Deadline for Certain Entities

    FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    IASB Adds Phase Two of IBOR Reform to Its Work Plan

    IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

    August 15, 2019 WebPage Regulatory News
    News

    FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

    FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

    August 15, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

    FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    OCC Updates Bank Accounting Advisory Series in August 2019

    OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.

    August 15, 2019 WebPage Regulatory News
    News

    APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

    APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

    August 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3656