APRA proposes directions to integrate new accounting standard into insurers' prudential framework
APRA has released for consultation its proposed directions for integrating AASB 17 Insurance Contracts (AASB 17) into the prudential capital and reporting frameworks for APRA-regulated insurers in the life, general and private health insurance industries.
The Australian Accounting Standards Board (AASB) has released AASB 17. The introduction of AASB 17 will revise the accounting treatment for insurance contracts. As AASB 17 will modify a number of accounting concepts which underpin APRA’s prudential capital framework and introduce some new concepts, APRA is considering how to integrate these changes into its frameworks.
Written submissions on the indicative directions are requested by 22 November 2019. APRA’s proposed directions are available at new accounting standard – AASB 17 Insurance contracts.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.