2012年-IMF国际货币组织全球_Australia_Insurance_Core_PrinciplesDetailed_Assessment_of_Observance_137页_1mb

Summary of Australia: Insurance Core Principles—Detailed Assessment of Observance

Core Content

This document presents a detailed assessment of the observance of the Insurance Core Principles (ICPs) in Australia as of November 2012. It outlines the regulatory and supervisory framework, industry structure, performance, and key risks in the life and general insurance sectors. The assessment is conducted by the IMF and highlights the progress made since the initial Financial Sector Assessment Program (FSAP) in 2006, while also identifying areas for improvement.

Main Points

1. Insurance Industry Overview

• The Australian insurance industry is relatively small compared to the banking sector, representing about 8% of total financial system assets as of end-2011.
• The industry has been consolidating since 2007, with the number of insurers decreasing from 190 to 172, although foreign branches of general insurers increased from 36 to 43.
• The industry comprises 24 life insurers, 108 general insurers, 19 reinsurers, 7 captive general insurers, and 14 friendly societies as of end-June 2011.

2. Regulatory Framework

• Australia follows a functional regulatory structure:
  • APRA (Australian Prudential Regulation Authority) oversees prudential regulation and supervision of regulated institutions.
  • ASIC (Australian Securities and Investment Commission) is responsible for market conduct regulation and supervision.
• Significant regulatory progress has been made since 2006, including:
  • Implementation of Stage II reforms and Level 2 supervision for general insurance groups.
  • Expansion of APRA's enforcement powers.
  • Restrictions on unauthorized foreign insurers (UFI).
  • Clarification of the Treasurer's role in supervisory matters.
• Level 3 supervision of financial conglomerates is currently under consultation.

3. Insurance Market Structure and Penetration

• Insurance penetration (as % of GDP) and density (as $ per capita) are generally lower than other industrialized economies.
  • Life insurance penetration: 2.7%, density: $1,817.
  • General insurance penetration: 2.5%, density: $1,463.
  • Reinsurance penetration: 0.2%, density: $121.
• Insurance density for general insurers is higher than the industrialized country average.
• The industry is under-insured due to high premium taxes in some states and limited savings and investment business by life insurers.

4. Ownership Structure

• Most insurers are domestically owned, with banks playing a significant role in life insurance and wealth management.
  • 9 out of 24 life insurers are owned by Australian banks.
  • 97 of 108 general insurers are owned by non-financial entities.
• Foreign ownership is limited, with no foreign life insurance branches in Australia.
• QBE Insurance Group is the only major general insurer with significant overseas operations.

5. Life Insurance Industry

• The life insurance sector is highly concentrated, with the top three insurers holding 66% of total life insurance assets.
• Wealth management is the dominant product, making up nearly 70% of business in 2010/11.
• Superannuation products are a key component, though life insurers' share has fallen from 44% in the 1990s to 15% in early 2012.
• Unit-linked policies (ULPs) are a major product and contribute significantly to equity investments.
• Capital adequacy for the life insurance industry was 142% as of end-June 2011, a slight decline from 149% in the previous period.
• Key risks include:
  • Depressed financial markets.
  • Inadequate pricing, especially for group risk schemes.
  • Strategic refocusing due to regulatory changes.
  • Direct marketing channels may introduce underwriting and pricing risks.

6. General Insurance Industry

• The general insurance sector is more diversified than the life insurance sector.
• Property and motor insurance account for over 50% of general insurance business in recent years.
• The top three insurers account for about 75% of personal lines earned premiums in 2010/11.
• Commercial lines are more spread out across the industry.
• Natural disasters in 2010/11 (e.g., floods in Queensland, earthquakes in Christchurch) affected gross exposures but were mitigated by reinsurance.
• Reinsurers have raised renewal rates and some are reluctant to provide lower layers of catastrophe cover or aggregate reinsurance.

7. Regulatory Gaps and Recommendations

• There are minor gaps in the regulatory regime, particularly in supervising the conduct of business by insurers and intermediaries.
• ASIC has limited resources and uses a desktop approach to supervision, which is triggered by industry intelligence, complaints, and breach reports.
• Recommendations include:
  • Broadening ASIC's legal power to ensure fair treatment of customers.
  • Implementing group-wide market conduct requirements.
  • Enhancing claims handling practices.
  • Requiring insurers to consider customer interests during product development.
  • Equipping ASIC with adequate supervisory resources and technical capacity for proactive supervision.

8. Observance of ICPs

• The updated regulatory framework in Australia shows high observance with the ICPs.
• APRA has robust prudential supervision and risk-based frameworks.
• Internal policies and processes are in place to ensure consistent and prompt supervisory actions.
• APRA has sufficient supervisory resources and technical capacity to conduct effective oversight.

Key Information

• ICPs are structured in a hierarchy of supervisory material:
  • ICP statements define essential elements.
  • Standards provide high-level requirements.
  • Guidance explains implementation.
• The FSAP (Financial Sector Assessment Program) is a key mechanism for assessing regulatory frameworks.
• APRA and ASIC play complementary roles in the regulatory ecosystem.
• Life insurance is heavily focused on wealth management and superannuation.
• General insurance is more diversified and resilient despite natural disasters.
• Reinsurance plays a critical role in mitigating catastrophic risks.
• Regulatory improvements are needed to address customer protection and supervisory effectiveness.

Conclusion

Australia has made significant progress in aligning its insurance regulatory framework with the ICPs. The prudential supervision by APRA is strong, and the market conduct oversight by ASIC is evolving. However, there are gaps in the supervision of business conduct, which require further attention to ensure comprehensive observance of ICPs. The regulatory environment is robust but needs enhancements in customer protection and supervisory capacity to meet the evolving needs of the insurance sector.