The Australian Prudential Regulation Authority (APRA) has called on the insurance industry to review its public disclosure practices.

In a letter to general insurance CEOs, the regulator says a number of insurers are “lagging behind” better industry practice.

“APRA strongly encourages each insurer to review its approach to public disclosure of prudential matters… with the aim of enhancing market discipline.”

Public disclosures, which come in the form of APRA publications or insurer reports, give rise to “better informed market participants”, the letter says.

Other key benefits include increased consistency, strong incentives for insurers to conduct sound and efficient business, and enhanced information available to senior management.

“This in turn can lead to increased confidence in the soundness of insurers, and the promotion of stability in the insurance industry and financial system,” the letter says.