The Australian Prudential Regulation Authority (APRA) has published a response paper setting out refinements to its proposed updates to the general insurance reinsurance framework, aimed at making it easier for insurers to access a wider range of reinsurance structures, including alternative arrangements such as insurance-linked securities, while maintaining policyholder protections. The revised approach responds to industry feedback and builds on proposals consulted on from November 2024, with APRA positioning the changes as a recalibration of its capital settings and risk safeguards alongside greater flexibility for reinsurance sourcing and product innovation. APRA is seeking industry feedback on the draft prudential standards, prudential guidance and reporting standards by 30 January 2026.
Australian Prudential Regulation Authority 2025-10-22
Australian Prudential Regulation Authority issues response paper refining general insurance reinsurance framework proposals to broaden access to alternative reinsurance
The Australian Prudential Regulation Authority (APRA) released a response paper detailing refinements to its proposed updates to the general insurance reinsurance framework. The revisions aim to facilitate insurers' access to diverse reinsurance structures, including insurance-linked securities, while ensuring policyholder protections. This approach, incorporating industry feedback, recalibrates capital settings and risk safeguards, and enhances flexibility for reinsurance sourcing and product innovation.