The Australian Prudential Regulation Authority (APRA) will collect around $122 million in levies for its regulatory and enforcement work with less than 10% of that being used to oversee the life insurance sector.
At the same time APRA has indicated it would only devote around 10% of its time to the oversight of the life insurance sector with Approved Deposit-Taking Institutions (ADI), such as banks, building societies and credit unions, occupying around 50% of the regulator’s time and providing 45% of the levies collected.
…APRA has indicated it would only devote around 10% of its time to the oversight of the life insurance sector…
The numbers are contained in a discussion paper released by Treasury which details the proposed financial institutions supervisory levies for 2016-2017.
In the paper, prepared by Treasury and APRA, the regulator would see only a minor decrease of less than 1% in the levies it would collect from ADIs, Life Insurers, Friendly Societies, General Insurers, Private Health Insurers and APRA regulated superannuation funds.
The paper also stated that superannuation funds would occupy around 25% of APRA’s time and attract 25% of its levies with the regulator required to oversee more than 2500 superannuation funds compared with 28 life insurers, 12 friendly societies and 158 ADI’s.
In it 2015 annual report APRA stated its focus in the life insurance sector had been on the underlying investment management of life insurance companies and their claims experience, with the discussion paper echoing those words for APRA’s 2016-2017 focus.
“In 2016‑17, APRA will continue its focus on the performance and capital adequacy of life insurers and friendly societies given the ongoing uncertainty in investment markets and the adverse trends in claims experience and lapse rates in risk insurance business.”
Treasury is seeking feedback on the paper via paper or electronic submissions, which are set to close on 3 June.
