Home / Regulatory & Government / APRA wants $30 million levy on insurers
11 June 2019
The Australian Prudential Regulation Authority (APRA) is seeking $30 million from general insurers via the annual supervisory funding levy, and invites industry to respond by Friday.
APRA’s total levy requirement was calculated at $186.1 million for 2019-20.
It estimates 44% of its supervision time will be spent on authorised deposit-taking institutions, followed by 26% on superannuation, then general insurance and life insurance.
Including institutions beyond APRA such as the Tax Office and corporate regulator, total proposed “supervisory” funding is $236 million. General insurers are required to fund APRA only, plus $100,000 for Treasury, according to a paper prepared jointly by the pair.
“In 2019/20, APRA will continue to work with the [general insurance] industry to strengthen risk governance, culture and remuneration, further improve stress testing capability, develop robust recovery plans and implement the executive accountability regime across the industry,” the paper says.
General insurers are also subject to a separate levy for operation of the National Claims and Policies Database. The proposed cost of this in 2019/20 is $900,000.
The proposed life insurance industry funding levy for 2019/20 is $19.9 million, or 8.4% of total levies.