The Australian Prudential Regulation Authority (APRA) has issued a consultation paper proposing modifications to the capital framework for annuities. The package would permit reduced capital requirements for annuity products where life insurers adopt enhanced risk management, including closer matching of assets and liabilities. APRA frames the proposals as a response to industry requests to better align Australian settings with other jurisdictions and to support more competitively priced annuities without unduly increasing risks to policyholders, with a view to improving longevity product offerings for retirees over time. Written submissions are requested by 25 July 2025.
Australian Prudential Regulation Authority 2025-06-12
Australian Prudential Regulation Authority consults on lower capital requirements for annuities tied to stronger life insurer risk management
The Australian Prudential Regulation Authority (APRA) released a consultation paper proposing changes to the capital framework for annuities, allowing reduced capital requirements for life insurers with enhanced risk management. This aims to align with international standards and support competitively priced annuities, with submissions due by 25 July 2025.