Following widespread reform to government data transparency in New Zealand the Australian Prudential Regulation Authority (APRA) has proposed publishing a greater breadth of industry-aggregate data for the general insurance (GI) and life insurance (LI) sectors.
NIBA CEO Dallas Booth has revealed that NIBA is looking very closely at the proposed determination and will be making a submission on behalf of its members in the coming month.
The regulator revealed in its letter to the industry, the intention to determine all class of business data for GI and all product group data for LI as non-confidential, unless sensitive commercial reasons are determined. APRA has also proposed disclosing explanations from individual GIs and LIs in relation to material revisions to, or large movements in, their data.
Publication of industry aggregate data that is subsequently determined to be non-confidential will take effect in the second half of 2020. This will however, not involve a change to APRA’s current suite of publications, but will mean that data previously masked will now be included in the relevant reportage.
By giving the general public access to industry information, APRA has indicated that it is seeking to promote:
- competition, contestability and efficiency in the financial system;
- innovative uses of data;
- greater consumer understanding and more informed public discussion of insurance-related issues;
- informed decision-making for all market participants, consultants, analysts and other users of the GI and LI statistical publications.
The industry aggregate data to be determined as non-confidential will be included in the Quarterly General Insurance Performance Statistics (QGIPS), the Annual General Insurance Claims Development Statistics (AGICDS), the Quarterly Life Insurance Performance Statistics (QLIPS) and the Life Insurance Supplementary Statistical Tables (LISST) from the second half of 2020. Any future changes to the data included in APRA’s GI and LI industry publications, including any future publication of entity-level class of business and/or product group data, will be subject to further consultation.
The six week consultation is open until 20 March 2020.
Copies of the consultation letter are available on the APRA website at: Confidentiality of general insurance and life insurance data.