General Insurance Prudential Framework update

APRA has extended the closing date for submissions on its Discussion Paper on Refinements to the General Insurance Prudential Framework to 28 September 2007.

The extension will allow sufficient time for respondents to consider APRA’s proposals while also considering an options paper on exemptions for DOFIs that the Treasury is expected to release during September. This will give respondents an opportunity to identify whether there are any issues arising from the Treasury consultation paper that would affect their submission to APRA’s Discussion Paper.

APRA has clarified its comments on capital recognition of reinsurance recoverables older than 12 months. It also noted that the Discussion Paper made no reference to transitional provisions for this proposal. APRA is nevertheless considering transitional provisions relating to pre-existing reinsurance arrangements.