The Australian Prudential Regulation Authority received no submissions on its plan to change illiquidity premium calculations for life insurers.

The regulator proposed the change after the Reserve Bank of Australia moved to stop publishing information used by life companies to calculate the premium.

The new illiquidity premium is added to risk-free forward rates for the 10 years following the reporting date.

It will include figures from the Australian corporate bond spreads and yields, obtained from the Reserve Bank. The revised method of calculating the premium will apply to reporting dates from December 1.