APRA cautions group insurers
Australia’s major group life insurers have received a caution from the Australian Prudential Regulation Authority (APRA) on the need for better risk management in the face of significant losses experienced in the sector.
Money Management has been told the major insurers were summoned to meetings with APRA last week during which the regulator is understood to have pointed to recent industry data which starkly reveals the degree to which bottom lines have been crimped and the manner in which insurers have had to lift their premiums.
It is understood APRA officials signaled their intention to lift the bar with respect to risk management within the group life/risk sector - something which is likely to place increased pressure on companies as they continue to pursue mandates from the major superannuation funds.
At least a part of the reason for the regulator’s concern is understood to be the manner in which the pursuit for mandates by business development managers led to margins being cut too thin.
Recent Plan for Life data has suggested the major group life/risk insurers have begun to adjust their positions, largely on the back of premium increases imposed on their superannuation fund clients.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
