Treasury has proposed collecting $20.4 million in levies funding from the life insurance/friendly societies sector to recover the costs of the Australian Prudential Regulation Authority’s (APRA) supervision of the industry in 2023/24. 

The figure represents about 7.8% of $263.7 million in total levies required in 2023/24 for all relevant Commonwealth agencies, the Treasury discussion paper says. 

APRA’s underlying net levies funding requirement for 2023/24 is $222 million, an increase of $7.2 million relative to the funding requirement in 2022/23. 

In 2023/24 APRA’s supervisory activities in the life insurance and friendly society industry will remain focused on the establishment of a sound basis for long term product sustainability, ensuring good prudential outcomes for life insurers, and good long-term consumer outcomes. 

“APRA remains committed to its program of work to support the long-term sustainability of individual disability income insurance and plans to review the progress of several individual life insurers in meeting APRA’s product sustainability expectations,” the discussion paper says. 

“In relation to insurance in superannuation, APRA will use the outcomes from a survey of direct insurers and reinsurers to undertake targeted engagements with selected entities.” 

The regulator also plans to continue with work to support data-driven decision making, the introduction of Accounting Standard AASB17, resilience against information security and implementation against prudential standards for operational risk, remuneration, and recovery and exit planning. 

Closing date for submissions to the discussion paper is June 9. 

Click here the Proposed Financial Institutions Supervisory Levies for 2023-24 paper.