New prudential standards for the life insurance industry will not impose any additional cost on insurers, according to the Australian Prudential Regulation Authority (APRA).

Amended prudential and actuarial standards for life insurers and friendly societies will come into effect on January 1, and include two new standards for reinsurance, audit and actuarial.

Under the new standards, APRA will divest responsibility for actuarial standards to the Life Insurance Actuarial Standards Board.

APRA Executive Member John Trowbridge says the new requirements are much like the previous arrangements.

“APRA is not introducing any new requirements, and life companies will not incur any additional costs,” he said. “These proposals will maintain the current prudential framework while also increasing APRA’s flexibility to adapt its prudential standards to future developments in the life insurance industry.”

Details of the standards are available on the APRA website.