The Australian Prudential Regulation Authority published a speech to the Insurance Council of Australia outlining its expectations for “futureproofing” the insurance sector, centred on day‑to‑day resilience fundamentals, responsible innovation and stronger leadership and risk culture. It also highlighted a supervisory focus on “getting the balance right” by maintaining system safety and stability while seeking to reduce unnecessary regulatory burden where it is safe to do so. APRA reiterated that resilience depends on core prudential and operational capabilities, including a strong capital base supported by prudent underwriting and effective risk management, operational resilience and third‑party oversight, robust claims management controls, and cyber security that keeps pace with evolving threats. It pointed to the Financial Accountability Regime taking effect for insurers in March 2025, requiring the appointment of accountable persons responsible for key insurance functions, and cited its latest Insurance Sector Risk Culture Survey, which identified good practice indicators as well as pain points for claims and technology staff. For general insurers, areas flagged for work to promote proportionality and efficiency included potential adjustments to reinsurance settings to support cost‑effective access, ongoing review of data collections, and identifying data‑sharing opportunities with other government agencies to reduce duplication. APRA indicated it will engage industry stakeholders over the coming months to gather feedback, including examples of duplicative or overly complex requirements.

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