APRA issues reinsurance pass mark
Insurers are on track to meet APRA’s reinsurance program targets.
Following an extensive APRA-led auditor review of reinsurance programs, the regulator says it’s “highly likely” insurers will meet the benchmark for at least 60% of reinsurance recoveries to meet documentation requirements.
But APRA warns insurers they need to strengthen their risk management and upgrade their reinsurance management systems, with many insurers’ systems still informal or lacking adequate documentation.
Insurers are required to have a placing slip within two months of the inception date, and full treaty contract wordings signed by all parties within six months.
Following an extensive APRA-led auditor review of reinsurance programs, the regulator says it’s “highly likely” insurers will meet the benchmark for at least 60% of reinsurance recoveries to meet documentation requirements.
But APRA warns insurers they need to strengthen their risk management and upgrade their reinsurance management systems, with many insurers’ systems still informal or lacking adequate documentation.
Insurers are required to have a placing slip within two months of the inception date, and full treaty contract wordings signed by all parties within six months.