Mackay Chapman September 2024 APRA Update

In this month’s APRA update:

• APRA releases National Claims and Policies Database statistics;
• APRA imposes additional licence conditions on Cbus and BUSSQ trustees;
• BUSSQ seeks judicial review of APRA decision;
• APRA guides cyber control weaknesses;
• APRA finalises Prudential Standard CPS 001; and
• APRA releases enhanced quarterly insurance statistics.

APRA Releases National Claims and Policies Database Statistics

APRA has published its National Claims and Policies Database (NCPD) statistics for the year ending 31 December 2023. The NCPD provides comprehensive data on professional indemnity (PI) and public and product liability (PL) insurance. The reports include an overview of PI and PL insurance, with aggregate data for APRA-regulated insurers and Lloyd’s Australia. Detailed reports for APRA-regulated general insurers will be updated and released later.

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‍APRA Imposes Additional Licence Conditions on Cbus and BUSSQ Trustees

APRA has imposed additional licence conditions on United Super Pty Ltd (trustee for Cbus) and BUSS (Queensland) Pty Ltd (trustee for the Building Unions Superannuation Scheme). These conditions address concerns over fitness and propriety processes and fund expenditure management. APRA requires both trustees to engage independent experts to review their compliance with prudential standards and will mandate the publication of these reports to ensure transparency.

BUSSQ Seeks Judicial Review of APRA Decision

BUSS (Queensland) Pty Ltd (BUSSQ) has applied to the Federal Court to review APRA’s decision to impose additional licence conditions on it. APRA announced the additional conditions on 14 August 2024. While APRA intends to contest the review application, it has agreed to suspend the conditions until the Federal Court review is completed, on the basis that BUSSQ sought an expedited hearing.

APRA Provides Guidance on Cyber Control Weaknesses

APRA has guided regulated entities on common cyber control weaknesses, following up on previous advice about backup security. The new guidance covers configuration management, privileged access management, and security testing issues. Regulated entities must address any identified gaps in their cyber control environments.

APRA Finalises Prudential Standard CPS 001

APRA has finalised the new Prudential Standard CPS 001, which consolidates definitions across various standards for deposit-taking institutions and insurers. The final standard, which will take effect from 1 October 2024, incorporates feedback from the November 2023 consultation.

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‍APRA Releases Enhanced Quarterly Insurance Statistics

APRA has enhanced its quarterly insurance statistics publications, featuring improved content and presentation. The updated statistics cover the quarterly periods ending September 2023, December 2023, and March 2024. The enhanced publications include:

• Quarterly general insurance performance statistics;
• Quarterly life insurance performance statistics; and
• Quarterly private health insurance performance statistics.