The Australian Prudential Regulation Authority (APRA) has started a consultation exercise on the remaking of four life insurance prudential standards due to sunset on 1 April 2023.
In a letter released yesterday to life insurers, APRA proposes to remake these standards without any amendments prior to their sunsetting date, based on its assessment that these standards continue to be broadly fit for purpose and are a required part of the prudential framework. However, APRA welcomes feedback on the four prudential standards, including any issues, from the industry’s perspective associated with these standards.
The four life insurance prudential standards are summarised in Attachment A and they are:
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Prudential Standard LPS 100 Solvency Standard (LPS 100);
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Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge (LPS 115);
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Prudential Standard LPS 360 Termination values Minimum Surrender Values and Paid up Values (LPS 360); and
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Prudential Standard LPS 370 Cost of Investment Performance Guarantees (LPS 370).
Written submissions on this consultation are due by 15 December 2022.
