Meanwhile, APRA’s beleaguered CEO Graeme Thompson is pushing his staff to have the final rounds of industry consultation on proposed new prudential standards completed by the end of the month, keeping pace with the politicians’ desire to get General Insurance Act into place quickly.  “In view of the extensive consultation that has already occurred, we expect to issue the new standards in final form soon after June 30,” Mr Thompson said.

While most insurers will be able to meet the higher capital adequacy requirements when they come into effect in July 2002 without having to raise additional capital, Mr Thompson agreed a number of insurers –  “mostly very small” – will not meet the new requirements. “APRA will determine a timetable for these companies to come up to the new level by July 1, 2004.”