APRA has revised its proposed new capital standards for insurers. The changes simplify the proposals and reduce the required capital in a number of areas.
In this newsletter:
- We summarise the key elements of APRA’s revised proposals and provide our assessment of the impact of the changes
- We indicate a few areas where we believe further consideration may be required by APRA
- We look at the issue of Pillar 2 Supervisory Adjustments to capital and in what circumstances these might apply
- We include some thoughts on ICAAP and what it will mean for insurers. We focus here on the issues for general insurers.