The Australian Prudential Regulation Authority (APRA)
has released its final general insurance refinements package
following extensive industry consultation over the past year.

The finalised package includes a response paper, prudential standards and prudential practice guides.

The key refinements are:

• recognition
  of five different categories of insurer, with modifications to the
  prudential framework tailored to the risk profiles of the categories;
  and
• changes to APRA’s capital requirements in relation to foreign reinsurance and also to equity and property investments.

The majority of changes will take effect from 1 July 2008 and the reinsurance changes from 1 January 2009.