On 7 July 2026, the Australian Prudential Regulation Authority (APRA) finalised its amendments to the general insurance (GI) reinsurance framework.
Background
The final changes are set out in APRA’s response paper following two rounds of consultation that took place in November 2024 and October 2025. The purpose of the reforms are to ensure that the prudential framework remains fit for purpose as market conditions and reinsurance practices evolve.
Changes
The response paper includes an attachment comprising of a table that compares APRA’s October 2025 consultation proposals with the final position. APRA has proceeded with the proposals as consulted on, with minor clarifications. The key changes include targeted amendments to improve access to alternative reinsurance arrangements, alongside measures to enhance efficiency by reducing APRA approval requirements. These reforms are also supported by technical refinements to enhance clarity, consistency and transparency across the GI prudential framework.
Next steps
The final prudential standards, reporting standards and guidance published alongside the response paper which will come into effect on 1 January 2027 are:
Prudential standards
- GPS 115 Capital Adequacy: Insurance Risk Charge (GPS 115)
- GPS 116 Capital Adequacy: Insurance Concentration Risk Charge (GPS 116)
- GPS 230 Reinsurance Management (GPS 230)
Prudential practice guides
- GPG 116 Insurance Concentration Risk (GPG 116)
- GPG 245 Reinsurance Management Strategy (GPG 245)
Reporting standards
- GRS 115.0 Outstanding Claims Liabilities – Insurance Risk Charge (GRS 115.0)
- GRS 115.0.G Outstanding Claims Liabilities – Insurance Risk Charge (GRS 115.0.G)
- GRS 116.0 Insurance Concentration Risk Charge (GRS 116.0)
- GRS 116.0.G Insurance Concentration Risk Charge (Level 2 Insurance Group) (GRS 116.0.G)
Reinsurance Arrangement Statement and reporting forms
APRA does not expect an insurer to resubmit its Reinsurance Arrangement Statement (ReAS) solely due to the commencement of the new framework. Any changes arising from the reforms are to be reflected in the next scheduled ReAS submission. Updated reporting forms are also planned to be released in the APRA Connect Test environment in September 2026. APRA intends to release taxonomy artefacts prior to September to allow entities as much time as possible to manage the necessary reporting changes for these collections.