The Australian Prudential Regulation Authority has written to insurers saying it is finalising several minor updates to its prudential framework.

Consultation on a further round of small changes is planned for the second half of the year. 

The amendments are technical clarifications, not material changes in policy settings, APRA says. They follow a consultation in April that received six submissions. 

For general insurance, GPS 310 Audit and Related Matters is affected from October, and for life insurers, LPS 112 Capital Adequacy: Measurement of Capital is impacted. 

Paragraphs regarding reliance on a previous exercise of discretion have been updated to reflect standard wording, to allow previous exercises of discretion to continue to have effect under the updated prudential standards.

LPS 117 Capital Adequacy: Asset Concentration Risk Charge has also been updated to include a paragraph requiring life insurers to contact APRA if they seek to place reliance on determinations made under a previous version of that prudential standard.

“The intention is to refresh the framework for insurers in a timely manner between more comprehensive reviews of prudential standards,” APRA said.  

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