Friendly societies are being brought into line with other members of the life insurance industry in a more forthright manner than had been expected.

Yesterday APRA announced plans to review the Life Insurance Act, which was only overhauled six years ago. It is a more complex exercise than APRA originally planned. While the friendly societies were expected to be brought into a form of harmony with the rest of the industry through changes to actuarial standards, APRA said yesterday it “has become apparent” that the issues are broader than expected.

“Consequently, over the next 12 to 18 months APRA will undertake a review of the Life Insurance Act,” APRA spokeswoman Gloria Peterson said. “It is not APRA’s intention to overhaul the fundamental requirements of the Act.”

APRA believes the Life Insurance Act is one of the best in the world, so changes will be limited to integrating life company and friendly society requirements, and “harmonising the structure of the LIA with APRA’s other legislative regimes”.