APRA (Australian Prudential Regulation Authority)

The Australian Prudential Regulation Authority (APRA) supervises banks, credit unions, insurance companies, and most superannuation funds to maintain the financial stability of these institutions and protect the interests of depositors, policyholders, and superannuation fund members. For insurance, APRA's primary role is ensuring insurers maintain adequate capital reserves, manage risks appropriately, and remain financially viable to pay claims. APRA sets prudential standards covering capital requirements, risk management frameworks, governance structures, reinsurance arrangements, and claims handling procedures. The regulator conducts regular stress testing, reviews financial reports, and can intervene if an insurer's financial position deteriorates. APRA works closely with ASIC, with APRA focusing on insurer solvency while ASIC handles market conduct and consumer protection. APRA's oversight helps prevent insurer failures that could leave policyholders without coverage or unable to claim.