Legislation targets life insurers
Tricky federal legislation targeting life insurers has entered a new phase, with the Australian Prudential Regulation Authority (APRA) calling for submissions on proposed changes to the arrangements for life insurers’ non-operating holding companies.
Legislation to give APRA the power to authorise life insurers’ non-operating holding companies was introduced into Parliament on March 19.
If passed, the legislation will give APRA the power to apply the same governance and fit and proper standards that currently apply to the non-operating holding companies of authorised deposit-taking institutions and general insurers.
ING and Aviva would probably be the most affected by such changes, due to their offshore ownership structures. The writing of business, for example, could become considerably more complex for them under the planned legislation.
The Investment and Financial Services Association (IFSA) says there is “a way to go yet” in terms of process.
“We expect the issues raised will be fully considered prior to further debate and prior to the gazettal of any subsequent regulations,” IFSA Deputy CEO John O’Shaughnessy told insuranceNEWS.com.au.
Legislation to give APRA the power to authorise life insurers’ non-operating holding companies was introduced into Parliament on March 19.
If passed, the legislation will give APRA the power to apply the same governance and fit and proper standards that currently apply to the non-operating holding companies of authorised deposit-taking institutions and general insurers.
ING and Aviva would probably be the most affected by such changes, due to their offshore ownership structures. The writing of business, for example, could become considerably more complex for them under the planned legislation.
The Investment and Financial Services Association (IFSA) says there is “a way to go yet” in terms of process.
“We expect the issues raised will be fully considered prior to further debate and prior to the gazettal of any subsequent regulations,” IFSA Deputy CEO John O’Shaughnessy told insuranceNEWS.com.au.