The Australian Prudential Regulation Authority (APRA) published a speech to the Insurance Council of Australia conference setting out its current supervisory focus for insurers as risks rise, emphasising that “getting the basics right” remains non-negotiable while the industry also strengthens innovation and leadership. APRA highlighted core expectations around capital strength, underwriting and risk management, operational resilience (including third-party oversight and major event planning), robust claims management, and cyber security. The speech noted that the Financial Accountability Regime, implemented in March 2025, has increased accountability by requiring insurers to appoint accountable persons for key insurance functions including capital management, risk management, underwriting, reinsurance and product design. APRA also referenced its latest Insurance Sector Risk Culture Survey, pointing to practices such as clear roles and accountability, constructive challenge by executives, and staff feeling safe to speak up, while flagging “pain points” for claims and technology staff. On innovation, it encouraged investment in digital capabilities and artificial intelligence across areas such as underwriting, claims, cybersecurity, fraud detection and crisis prevention, while stressing the need for transparency and customer-focused implementation. APRA said its August 2025 Corporate Plan sharpened its focus on “getting the balance right”, including initiatives to minimise regulatory burden. For general insurers, it flagged work on reinsurance settings to promote cost-effective access, ongoing review of data collections, and identifying data-sharing opportunities with other government agencies to reduce duplication, with industry engagement over the coming months to gather feedback and examples of overly complex requirements.

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