The Australian Prudential Regulation Authority (APRA) has commenced a second round of consultation on modifications to its capital framework for longevity products, including annuities, aimed at supporting the development and availability of these products for Australian retirees while safeguarding policyholder interests. The updated proposals reflect feedback received on APRA’s June 2025 consultation on changes to the life insurance capital framework, and include a shift towards a more principles-based approach to determining capital requirements. APRA has published a paper setting out its response to industry feedback and the refined proposals, described as adjustments to the capital settings for longevity products. The package is framed as supporting regulatory balance by promoting financial system safety and stability in an efficient way, while facilitating the growth and competitive pricing of longevity products. Submissions on the draft prudential standards are due 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 including annuities
The Australian Prudential Regulation Authority has initiated a second consultation on revisions to its capital framework for longevity products, including annuities, to enhance product development for retirees while protecting policyholder interests. The updated proposals, reflecting feedback from a June 2025 consultation, adopt a more principles-based approach to capital requirements, with submissions due by 17 December 2025.