General insurers have marked down the Australian Prudential Regulation Authority (APRA) for its performance on cost consultations, while giving the regulator a mostly positive scorecard in its biennial Stakeholder Survey Report.

Respondents gave an average rating of 4.2 out of five when asked whether the authority’s supervision of the financial services sector benefits the insurance industry.

But under consultation performance, it scored 2.8 when respondents were asked whether changes to APRA’s prudential framework sufficiently consider the regulation costs imposed.

The survey by Orima Research collated feedback from 320 financial sector companies. Deposit-taking institutions, private health insurers, life insurers, trustees and friendly societies also responded.

Overall, participants agree APRA activities help protect the community’s financial wellbeing and are beneficial for individual industries, and for risk management practices and culture.

“Though the… survey picked up some slight variations compared with two years ago, it confirmed APRA has an overwhelmingly positive and productive relationship with the entities it regulates,” Chairman Wayne Byres says.

Analysis of relative costs and benefits of regulation is the main area highlighted for improvement across the sectors.

Insurers gave a 4.4 rating for the understanding shown by APRA supervisory teams towards organisations, and 3.7 on whether the effort required during prudential reviews is appropriate.

APRA scored 3.6 for identifying emerging industry issues in a timely manner, and four on identifying risks and problems in institutions.

Prudential practice guides rated four for usefulness, while speeches by senior APRA representatives scored 3.2. On the demonstration of APRA’s values, insurers gave a rating of 2.7 for foresight and 3.7 for professionalism and integrity.