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APRA's data transparency plan meets resistance

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The Insurance Council of Australia (ICA) is concerned plans by the prudential regulator to increase the transparency of published data could lead to a “weakening of competition and greater concentration” in certain product classes.

ICA says the Australian Prudential Regulation Authority (APRA) has not explained how “unmasking class of business and product group data” will promote competition.

The council says it is concerned that in the absence of an explanation from APRA, the actual outcome may be different to that expected.

“We therefore think it would be of benefit for APRA to provide ICA and members with its analysis of the competition effects of unmasking class of business and product group data and any assessment of its competition champion, the council says in a submission.

“This will help give the general insurance industry confidence that its concerns about the anti-competitive effects of this proposal are unlikely to eventuate.”

“It would also be a tangible demonstration of APRA’s commitment to transparency and accountability.”

APRA last month called for submissions on the plans, which could take effect in the second half of this year.