APRA has indicated that issues with the provision of life insurance through superannuation could lead to changes to the prudential framework.
In its 2018 policy priorities information paper, APRA said its policy agenda for the insurance sector “remains stable”, however notes that adjustments may need to be made to the regulation of insurance provided through superannuation.
“Over the medium term, APRA expects that changes to the prudential framework for insurance may be needed to address issues with the provision of life insurance in superannuation, as well as potential innovative post-retirement products,” the paper said.
However, the regulator said it “does not anticipate consulting on these issues in 2018” unless it becomes necessary due to the priorities of the Australian government.
APRA’s focuses for the first half of 2018, the paper said, are on implementing risk management for private health insurers, finalising its consultations on the role of the appointed actuary and reinsurance.
Consultations regarding offshore insurers and private health insurer governance, fit and proper testing, and audits will also continue during this period, the regulator said.