Consultation to enhance oversight of life reinsurance market infographic - accessible version

This infographic supports the information in the consultation to enhance oversight of life reinsurance market media release.

Objectives

• Maintain adequate oversight of the life insurance industry to effectively protect policyholders
• Better facilitate the use of risk mitigation by life insurers
• Enhance the standard to make prudential requirements clearer

Key revisions

• Introducing an aggregate limit on exposures to offshore reinsurers
• Adding a new limit for exposures to related party reinsurers
• Modifying the calculation of the value of the assets of the fund (VAF) for reinsurance exposures
• Redefining stressed reinsurance assets to improve accuracy of capital calculations
• Broadening and clarifying permissible risk mitigation techniques

Timeline 

• Consultation commences – April 2021
• Consultation closes – 25 June 2021
• APRA finalises standard – Late 2021 
• New standard comes into effect – 1 July 2023