Speedy reform process overtakes ING, Axa
The brisk pace of regulatory reform has proved a little too brisk for life insurance companies with non-operating holding companies.
As reported last week, APRA has called for submissions on proposed changes that would enable it to treat life insurers’ non-operating holding companies the same way it does with banks and general insurers.
Legislation introduced into Federal Parliament on March 19 will give APRA the necessary power.
It has emerged that ING and Axa Asia Pacific sent submissions to the Senate Economics Committee Inquiry in April expressing surprise at a lack of consultation and complaining of potential “unwarranted burdens” from the changes.
In its submission, ING says there are “significant” costs involved, while Axa says it recognises the need for effective prudential regulation in the light of corporate failures overseas. But it says APRA already has effective power through the Life Insurance Act.
ING Australia spokesman Allan Hansell says the company wants a proper regulatory impact statement done so the true cost of changes could be borne out.
“We’ve asked for a realisation that there need to be transitional arrangements in place so it happens in an orderly manner,” he told insuranceNEWS.com.au.
As reported last week, APRA has called for submissions on proposed changes that would enable it to treat life insurers’ non-operating holding companies the same way it does with banks and general insurers.
Legislation introduced into Federal Parliament on March 19 will give APRA the necessary power.
It has emerged that ING and Axa Asia Pacific sent submissions to the Senate Economics Committee Inquiry in April expressing surprise at a lack of consultation and complaining of potential “unwarranted burdens” from the changes.
In its submission, ING says there are “significant” costs involved, while Axa says it recognises the need for effective prudential regulation in the light of corporate failures overseas. But it says APRA already has effective power through the Life Insurance Act.
ING Australia spokesman Allan Hansell says the company wants a proper regulatory impact statement done so the true cost of changes could be borne out.
“We’ve asked for a realisation that there need to be transitional arrangements in place so it happens in an orderly manner,” he told insuranceNEWS.com.au.