14February 2023

OIA ID: OBPR22-03538

Mr Jason Lange

Executive Director

Office of Impact Analysis

Department of the Prime Minister and Cabinet

1 National Circuit

BARTON   ACT   2600

Email: helpdesk-oia@pmc.gov.au

Dear Mr Lange,

CERTIFICATION OF APRA’S REVIEW: REMAKING THE FOUR LIFE INSURANCE STANDARDS

I am writing to the Office of Impact Analysis (OIA) regarding the four Life Insurance prudential standards (LPS 100, LPS 115, LPS 360 and LPS 370) which are scheduled to sunset on 1 April 2023. Following consultation with APRA-regulated entities and other stakeholders, APRA has decided to remake these instruments without amendment.

APRA certifies that these standards are operating effectively and efficiently, and that therefore a Regulation Impact Statement is not required for these standards to be remade.

The assessment that the regulations are operating effectively and efficiently has been informed by an internal and external consultation process. This process involved relevant stakeholders, including all life companies regulated by APRA, over the period 21 November to 15 December 2022. No material issues were raised during the consultation period.

I also note that the regulatory burden to business, community organisations or individuals has been considered using the Australian Government’s Regulatory Burden Measurement framework. As there is no change between the existing instruments and what will be the remade instruments, there is no net saving or benefit. There is therefore no change in regulatory costs from business as usual.

I acknowledge that OIA will publish the letter for transparency purposes.

Yours sincerely

Suzanne Smith

Executive Board Member