Offshore reinsurers and the review of prudential standard LPS 117 Capital adequacy: Asset concentration risk charge
September 2022
On 27 September, APRA finalised changes to the capital and reporting frameworks for insurance in response to the introduction of the new accounting standard Australian Accounting Standards Board 17 Insurance Contracts (AASB 17).
Within this package, APRA has finalised LPS 117, LPS 114 Capital Adequacy: Asset Risk Charge and Reporting Standard LRS 117 Capital Adequacy Asset Concentration Risk Charge.
The final prudential and reporting standards can be found at: Round four – Response Paper and final Standards - Finalisation of the integration of AASB 17 into the capital and reporting frameworks for insurers and updates to the LAGIC framework.
Non-confidential submissions
March 2022
On 8 March 2022, APRA released finalised revisions to Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117). The accompanying response paper sets out APRA’s response to industry feedback on the consultation in April 2021.
APRA also released draft AASB 17 and LAGIC update proposals for LPS 117, and draft consequential amendments to Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge and Reporting Standard LRS 117 Capital Adequacy Asset Concentration Risk Charge. Written submissions are requested by 29 April 2022.
The response paper, draft prudential and reporting standards and non-confidential submissions to the initial consultation can be found below:
Response paper
Draft prudential standards
Draft reporting standard
Non-confidential submissions
April 2021
On 8 April 2021, APRA released a draft of the revised Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge for consultation. The accompanying response paper sets out APRA’s response to industry feedback on the initial consultation in March 2019.
Written submissions are requested by 25 June 2021.
The response paper, draft prudential standard and non-confidential submissions to the initial consultation can be found below:
Response paper
Draft prudential standard
Non-confidential submissions
March 2019
The March letter sets out APRA’s position on offshore reinsurers, provides a high-level outline of the options for revising Prudential Standard LPS 117 Capital adequacy: Asset concentration risk charge, and requests feedback from interested stakeholders.
Submissions are requested by 10 May 2019.
Letter
December 2017
Letter
Note on submissions
It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.
Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA-regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 and will therefore be exempt from production under the FOIA.