The Australian Prudential Regulation Authority (APRA) has released a response paper and 14 draft prudential standards in a third round of consultation on its review of capital standards for general and life insurers. The aims of the review include improving the risk-sensitivity of the capital standards and achieving better alignment of these standards across APRA-regulated industries.

APRA is seeking comment from industry and other interested stakeholders on its proposals by 24 February 2012.

APRA will undertake further consultation on revised draft prudential standards, prudential practice guides and draft reporting forms during 2012. The complete set of final prudential standards, reporting forms and instructions are expected to be released by October 2012. APRA intends that the revised prudential standards take effect from 1 January 2013, with the first reporting under the revised framework to commence from the first reporting period in 2013.

APRA will consider requests from insurers for transitional arrangements on a case-by-case basis in the second half of 2012.