Treasury calculates the general insurance industry will pay about $32.7 million in levies to fund the Australian Prudential Regulation Authority’s operational costs in the coming financial year, rising from $29.5 million in 2023-24.

The minimum and maximum levies are unchanged from current levels, at $22,500 and $1.45 million respectively, Treasury says in a discussion paper seeking submissions on its proposed 2024-25 supervisory levies for financial institutions including the Australian Taxation Office.

In addition to the APRA levy on general insurers, the industry will make a separate contribution of $1.1 million to cover operation of the National Claims and Policies Database, which contains policy and claims information relating to public/product liability and professional indemnity insurance.

Treasury says APRA’s 2024-25 activities in the general insurance industry include resilience-building through improved risk management requirements to address heightened cyber-operational threats and consumer affordability pressures.

“APRA will continue to work with stakeholders to deepen the understanding of the drivers of affordability and availability pressures,” the paper says.

Other areas of focus include work on the Climate Vulnerability Assessment, which is examining the impact of climate change on household insurance affordability out to 2050.

Treasury says APRA’s underlying net levy funding requirement for 2024-25 is $246.1 million, up 10.3%. The largest contribution will come from authorised deposit-taking institutions ($106.5 million), followed by superannuation ($73.7 million), general insurers, and life insurers and friendly societies ($22.1 million).

About $11.1 million will come from the database levy and private health insurers ($10 million).

The closing date for submissions is June 10. Click here for the paper.