Regulatory AlertsLPS 230 Reinsurance Management
The Australian Prudential Regulation Authority issued Prudential Standard LPS 230 to mandate annual reinsurance reporting and require prior written approval for Referable Reinsurance Arrangements from all life companies. This standard ensures that such arrangements, which often involve significant financing elements or limited risk transfer, are subject to independent oversight to prevent the misrepresentation of a company's financial position. Life insurers must comply with specific conditions imposed by APRA and adhere to strict accounting treatments for arrangements approved as financing rather than genuine reinsurance.
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