The Australian Prudential Regulation Authority has made structural changes in a bid to ensure it can handle emerging and future challenges.

From today, the regulator will have two front-line supervision divisions: general insurance and banking; and life insurance, private health insurance and superannuation.

Previously, it had three front-line units covering banking, superannuation and insurance (encompassing general, life and private health).

The regulator will also unite its financial and non-financial risk teams in a cross-industry risk division, alongside teams focused on systemic risk.

Executive director Jane Magill will lead the new general insurance and banking division.

Authority chair John Lonsdale says the changes will streamline and simplify APRA’s decision-making processes at a time of heightened financial risk globally.

“Over recent years, APRA’s size and responsibilities have increased as the financial system has grown in scale and complexity,” he said. “The interconnected nature of our digital environment means shocks travel across countries and industries much faster, and we need to ensure APRA is set up to react swiftly and effectively to key issues and crises. 

“APRA will continue to evolve as a modern and future-focused regulator that retains its best-practice standing among global peers and continues to deliver on its core mandate of ensuring the safety and stability of the Australian financial system.”