APRA releases draft Prudential Standard on risk management

Hilary Evenett, Clifford Chance, London

The Australian Prudential Regulation Authority (‘APRA’) has released for comment a draft Prudential Standard on risk management for general insurers. The draft standard was released as part of APRA’s current review of prudential supervisory arrangements for the general insurance regime. The draft standard aims to ensure that an insurer is well managed, by requiring its senior management to institute effective internal governance, as well as appropriate systems and controls to identify, manage and monitor risks that may threaten the ability of the insurer to meet its policyholder obligations. Comments on the draft Prudential Standard must be made by 20 October 2000.