The Australian Prudential Regulation Authority (APRA) has introduced interim arrangements for the reporting of solvency standards by life insurance companies.

They will apply from January 1 until planned amendments to the Life Insurance Act pass through Parliament later next year.

Under the proposed amendments two existing capital requirements for life insurers – solvency and capital adequacy – will be replaced by a single measure: required capital.

Until then, under the interim arrangements the solvency standard will be considered 90% of the capital adequacy standard. There will be no APRA reporting or disclosure requirements in relation to the solvency standard.

The Government is also proposing to extend APRA’s powers, allowing it to appoint statutory managers to failing life and general insurers, superannuation funds and authorised deposit-taking institutions.

Consultations on this and the Life Insurance Act amendments are open until December 14.