The Australian Prudential Regulation Authority (APRA) has released an additional discussion paper and proposals for General Insurance Reform Stage Two, which it says will tie up some legislative loose ends.

The discussion paper and draft prudential standards outline a proposed strengthening of the supervision of the industry in relation to capital adequacy, Australian assets and custodian requirements.

APRA Executive Member Steve Somogyi says the proposed reforms in these areas follow the more substantive risk and financial management reform proposals that were made available for public discussion in May.

“These proposals complete the picture for the second round of general insurance reforms by providing details of a number of technical changes,” he said. “The proposed changes promote the continuing prudential soundness of the Australian general insurance industry and the protection of Australian policyholders.”

Comments on the paper have to be with APRA by November 28.