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
March 2023
Additional amendments to the insurance capital framework
On 30 March 2023, APRA released a letter to industry containing a response to the consultation on accounting equity and the capital base and other amendments to the capital framework for insurers.
The amendments follow the finalisation of broader APRA reforms to the capital and reporting framework for insurers in 2022.
The response letter, prudential standards and non-confidential submission can be found below.
Response letter
AASB 17 – Finalisation and minor amendments to the prudential framework
Prudential standards
Non-confidential submission
September 2022
Finalisation of reforms to the insurance capital framework
On 27 September 2022, APRA released 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).
The 2020 and 2021 quantitative impact studies identified instances where an insurer's accounting equity (or net assets) under AASB 17 was significantly lower than the capital base. APRA is conducting a targeted consultation on additional requirements to ensure regulatory capital levels are sufficient to protect the prudential soundness of insurers and encourage appropriate accounting decisions. More information is available in the response paper. Submissions on these requirements are sought by 31 October 2022.
The response paper, information paper, final reporting and prudential standards and non-confidential submissions can be found below.
Media release: APRA aligns capital and reporting frameworks for insurance with AASB 17.
Response paper
Information paper
Information paper: Insurance capital: AASB 17 and LAGIC updates
Prudential standards
General insurance
Life insurance
Reporting standards
General insurance
Life insurance
Non-confidential submissions
Private Health Insurance (PHI)
Private health insurers should refer to the PHI capital consultation page for final Prudential Standards and final Reporting Standards.
Review of the private health insurance capital framework
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.