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APRA's COVID response backed by insurers

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The Australian Prudential Regulation Authority’s (APRA’s) 2021 Stakeholder Survey reveals measures brought in to address risks from COVID have been given the thumbs up by insurers and other regulated financial service entities.

The latest survey, the seventh APRA has conducted, polled almost 300 regulated organisations online in May.

“It’s pleasing to see that, overwhelmingly, entities are supportive of the work that we are doing and the actions we have taken during COVID-19,” APRA Chairman Wayne Byres said.

However, the survey indicates a quarter of regulated entities feel the burden of APRA’s regulation is too high for the benefit gained by their entity, and that almost one-third of respondents believe that APRA collects too much statistical data.

APRA’s updated corporate plan promises to modernise the prudential framework so that “it’s less burdensome and more adaptable to the rapidly evolving financial sector,” Mr Byres said.

The survey found 95% of regulated entities believed APRA effectively communicated its changing expectations during COVID, while 87% agreed APRA’s policy responses were appropriate and helpful to their organisation during the pandemic.

“Perceptions of APRAs response to regulating the industry during COVID were also strong, especially with respect to communicating changing expectations, appropriate and helpful policy responses, and reducing regulatory burden during the pandemic,” the regulator said.