APRA finalises amendments to general insurance reinsurance framework

APRA has finalised amendments to the general insurance reinsurance framework, following two rounds of industry consultation conducted in November 2024 and October 2025. The changes amend prudential standards GPS 115, GPS 116, GPS 230 and CPS 320, together with related prudential practice guides and reporting standards, to broaden insurers' access to alternative reinsurance arrangements while maintaining safeguards for policyholders. A key element expands the role of the appointed actuary in determining the capital treatment of certain reinsurance arrangements, reducing the number of matters insurers need to refer to APRA for approval.

APRA Member Suzanne Smith said the amendments modernise the prudential framework and give insurers greater flexibility to access reinsurance, while reducing regulatory burden as reinsurance markets evolve. The review began during a period of pressure in reinsurance markets and, although conditions have since eased, APRA says the changes are intended to support access to a broad range of reinsurance options through market cycles. The final prudential and reporting standards and guidance take effect on 1 January 2027, and updated reporting forms are expected to be released in the APRA Connect test environment in September 2026.

The reforms are final rather than proposed, with a confirmed commencement date, and apply to general insurers and their appointed actuaries. They are relevant to insurers reviewing their reinsurance programmes and to appointed actuaries whose sign off role under the capital framework is expanding ahead of commencement.