The Australian Prudential Regulation Authority has opened a second round of consultation on proposed modifications to the life insurance capital framework for longevity products, including annuities, publishing updated proposals and draft prudential standards intended to support product development and availability while safeguarding policyholder interests. Responses to the June 2025 consultation have driven refinements, including a shift toward a more principles-based approach to determining capital requirements. The revised proposals are positioned as facilitating growth and more competitive pricing of longevity products for Australian retirees, consistent with APRA’s stated aim of balancing financial system safety and stability with efficient regulation. Feedback on the draft prudential standards is invited by 17 December 2025.
Australian Prudential Regulation Authority 2025-10-29
Australian Prudential Regulation Authority launches second consultation on principles-based capital settings for longevity products
The Australian Prudential Regulation Authority has initiated a second consultation on changes to the life insurance capital framework for longevity products, including annuities. Updated proposals and draft prudential standards aim to enhance product development and availability while protecting policyholder interests. Refinements from the June 2025 consultation include a shift to a principles-based approach for capital requirements, promoting growth and competitive pricing for Australian retirees.