The Australian Prudential Regulation Authority (APRA) is exploring options to enhance general insurers’ access to reinsurance, focusing particularly on alternative arrangements. APRA member Suzanne Smith indicated that while traditional reinsurance methods have predominated, there is growing industry interest in alternatives such as catastrophe bonds and Insurance Linked Securities (ILS). To address feedback regarding challenges under the current prudential framework, APRA is opening a consultation process to consider adjustments that could facilitate access to a wider array of reinsurance solutions. Stakeholders are invited to submit their views on proposed changes by February 17, 2025.
