The Australian Prudential Regulation Authority (APRA) has released the final prudential standards that became effective from 1 July 2010.
The changes will align prudential reporting closely with statutory reporting. APRA expects that this will produce the following key benefits:
- a simplified reporting process by general insurers to APRA
- a clearer view for APRA of insurer performance, and
- enhanced quality of discussions between APRA and individual insurers concerning the insurer's performance.
The affected Prudential Standards are GPS 001: Definitions, GPS 110: Capital adequacy, GPS 112: Capital adequacy: Measurement of capital, GPS 113 Capital Adequacy: Internal Model-based Method, GPS 114 Capital Adequacy: Investment Risk Capital Charge, GPS 115 Capital Adequacy: Insurance Risk Capital Charge, GPS 116 Capital Adequacy: Concentration Risk Capital Charge, GPS 120 Assets In Australia and GPS 310: Audit and actuarial reporting and valuation.
You can access further information on these changes at the APRA website www.apra.gov.au.
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