APRA issued a new life insurance reporting standard LRS 750.0 Claims and Disputes. The standard makes it mandatory for life insurers to report data on claims and disputes; it is a critical milestone on the path to delivering enhanced transparency and accountability through the regular publication of credible, reliable, and comparable data. This reporting standard commences on the day it is registered on the Federal Register of Legislation.
This reporting standard sets out the requirements for the provision of information to APRA by an authorized life company in relation to its claims and disputes data. It includes Form LRF 750.0 Claims and Disputes and associated instructions. The reporting standard applies to all life companies authorized under the Life Insurance Act 1995 (Life Act), which write business as per section ‘A. Application’ in the Instructions. This standard will enhance the consistency and quality of life insurance data published through a ground-breaking program established jointly last year by APRA and the Australian Securities and Investments Commission (ASIC). To date, the regulators have released two rounds of pilot data on life insurance claims and disputes. However, participation was voluntary and insurers did not interpret the reporting requirements consistently. The first public release of data collected under LRS 750.0, featuring insurer-level data, is due in early 2019, with ongoing publications to be issued every six months.
Under this standard, a reporting period is six months in duration. A life company must provide the information required by this reporting standard relating to the reporting period from July 01, 2017 to December 31, 2017 and the reporting period from January 01, 2018 to June 30, 2018 by December 28, 2018. Furthermore, a life company must provide the information required by this reporting standard relating to the reporting period July 01, 2018 to December 31, 2018 three months after the end of the relevant reporting period and the reporting period January 01, 2019 to June 30, 2019 two months after the end of the relevant reporting period. A life company must provide the information required by this reporting standard relating to the reporting period July 01, 2019 to December 31, 2019, and each subsequent reporting period, within six weeks after the end of the relevant reporting period.
Keywords: Asia Pacific, Australia, Insurance, Life Insurance Claims, LRS 750.0, Reporting, APRA
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