The Australian Prudential Regulation Authority (APRA) will implement its proposal to determine general insurance class of business data submitted from the industry as non-confidential.

It will also do the same for life insurance product group data, the regulator says.

APRA announced the decision last week, saying the move takes into account feedback to a consultation it launched last year about the proposed action.

The regulator says it aims to promote greater transparency in line with its prudential objectives by publishing more of the data that it collects.

“In turn, this will support competition, contestability and efficiency in the financial system and facilitate innovative uses of data,” APRA said in a letter to general and life insurers.

APRA says the move will also improve accountability, encouraging insurers to act with discipline and drive better, more efficient market behaviour.

The regulator says submissions were generally supportive of the intent of its initiative although there were some concerns raised.

“A number of respondents raised concerns about APRA publishing or otherwise disclosing class of business/ product group data for individual insurers,” the letter said.

“APRA will not be publishing insurer level data from reporting forms beyond that already published.

“Should APRA plan in the future to expand the publication of insurer level data to include class of business/product group data for specific entities, APRA will formally need to consult on any such proposals at that time with industry.”

APRA says it will not be proceeding with its other proposal to publish explanations from individual insurers as submissions from respondents flagged concerns that the move may result in the release of commercially sensitive information at an insurer level.

The Insurance Council of Australia (ICA) in its submission expressed concerns about the move to determine general insurance class of business data as non-confidential.

ICA says it benefit APRA to provide the peak body and members with its analysis of the competition effects of unmasking class of business and product group data and any assessment by its competition champion.

“This will help give the general insurance industry confidence that its concerns about the anti-competitive effects of this proposal are unlikely to eventuate,” ICA said.

“It would also be a tangible demonstration of APRA’s commitment to transparency and accountability.”

Click here for the APRA letter and here for the ICA submission posted on the APRA website.