The Australian Prudential Regulation Authority (APRA) is concerned some commercial lines pricing is too low, Deputy Chairman Ian Laughlin says.

There is pressure from strong competition and excess capacity in the market, he told the Insurance Council of Australia (ICA) regulatory update last week.

APRA has received feedback that premiums are too low in some lines and continue to fall.

Mr Laughlin also says the regulator remains unsatisfied by catastrophe risk management practices and will pay close attention to the matter when talking to reinsurers.

He has previously warned the industry about over-reliance on catastrophe models, saying this may lead to inadequate reinsurance for natural catastrophes.

He says cyber crime is on the rise and presents risk to insurers as businesses in their own right and as providers of cover to other companies.