APRA sets four-year plan for financial sector stability

APRA will collaborate to address the protection gap in household insurance.

The Australian Prudential Regulation Authority (APRA) has released its latest Corporate Plan, detailing its strategy to ensure the stability and resilience of Australia's insurers, banks, and superannuation trustees over the next four years. 

The 2024-25 Corporate Plan’s key priorities outlined in the plan include enhancing bank capital and liquidity standards in response to lessons learned from recent global banking turmoil, raising operational resilience through the new Prudential Standard CPS 230 Operational Risk, and increasing industry standards for cyber risk management. 

APRA also plans to conduct its first system-wide stress test to evaluate financial system interconnections and expects entities to consider climate risk in their decision-making.

In the insurance sector, APRA will collaborate with stakeholders to address the protection gap in household insurance and will work with the Australian Securities and Investments Commission to ensure superannuation trustees comply with the retirement income covenant.

Internally, APRA is committed to investing in its workforce and enhancing its data collection and analysis capabilities, supported by additional funding from the 2024-25 Federal Budget.