The general insurance industry will pay about $28.6 million to fund Australian Prudential Regulation Authority operational costs next financial year, down from $32.7 million in 2024-25, Treasury calculates. 

The industry levy represents 10.1% of the total required, compared with 11.1% this year.  

The minimum and maximum levies are unchanged at $22,500 and $1.6 million, Treasury says in a discussion paper. 

APRA’s key general insurance activities will include identifying actions to address the household insurance protection gap; climate vulnerability assessment work; strengthening insurance risk management capabilities, especially for insurers with outsourced underwriting functions; and consulting on reinsurance framework changes. 

The life insurance industry faces levies totalling $19.5 million, down from $22.1 million in 2024-25. The sum represents 6.9% of APRA’s total, down on 7.5% in 2024-25.  

Activities for the sector include a consultation on capital settings for annuity products to support life insurers and increase availability of retirement products; and assessment of life insurers’ progress in meeting APRA product sustainability expectations across individual and group business. 

General insurers will make a separate contribution of $1.2 million to cover operation of the National Claims and Policies Database, which relates to public/product liability and professional indemnity insurance. 

Treasury is seeking views on its proposed financial institutions supervisory levies. Submissions can be lodged here.