News Risk Management10 Jun 2024

Australia:APRA advises insurers of urgent need to elevate risk governance

| 10 Jun 2024

The Australian Prudential Regulation Authority (APRA) has stressed that it encourages the directors and executives of insurance companies to elevate risk governance with a sense of urgency and to foster deeper self-reflection when mistakes do occur to ensure that root causes are effectively addressed.

This was raised at a roundtable on 13 May 2024 hosted by APRA and the Insurance Council of Australia (ICA) focused on risk governance, the regulator said in a statement issued on 7 June.

The roundtable was a valuable opportunity for APRA to speak directly to the industry about why it places so much emphasis on effective risk governance in its supervision activities.

APRA also emphasised the systemic importance of the insurance industry, its crucial role supporting households and businesses, and how a thriving insurance industry helps bolster the broader economy.

APRA appreciated hearing the industry’s experiences, challenges, and priorities, including the cumulative effect of regulatory change across a wide range of areas, perspectives on the importance of proportionality in regulation and the impact of responding to data requests from numerous sources. There was also a discussion on the importance and value of improving transparency by insurers and insurers pressed the significance of continual collaboration between government agencies to achieve efficient outcomes.

The roundtable allowed for valuable and constructive dialogue and both APRA and the ICA see value in convening additional roundtables in the future.


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